depreciation

[MBA]

How to depreciate indoor gaming arena?

[Just-Lisa-Now-]

The building itself?

[MBA]

Arena was special build for laser tag game

[Just-Lisa-Now-]

Do they own the building or are they leasing it?  Please give some additional info about what you're having a problem with, nobody has time to keep guessing what your question is.

[MBA]

They leasing from their Holding company. I think I will depreciate for term of the lease. 

[Just-Lisa-Now-]

If they dont own it, you dont depreciate it.

So they leased it as is, or they put the money into the improvements to make it a laser tag facility?

[MBA]

yes, they add laser tag facility.  It's  lease improvement they did can be depreciated for term of the lease

[MBA]

obviously,  I'm not talking about depreciate building what is leased, I'm talking about lease improvements they specially made for this facility. 

[abctax55]

deleted.... 

[qbteachmt]

"yes, they add laser tag facility"

You are being asked to provide more details. Not "facility." Buildings; interior changes; parking lot and landscape; signage; equipment (furniture and fixtures). Depreciation applies to ownership.

To get specific help from the peers that volunteer to be helpful, you need to give them specifics.

You need to understand: What sort of improvements were made, when, for how much, and how were they treated for tax reporting in the year placed in service and/or prior years? How does the lease term compare to the IRS useful life regulations for each type of asset?

"It's lease improvement they did can be depreciated for term of the lease"

If you already think this, then what part is your question?

[MBA · Accepted solution]

Done Cost Segregation ATG by IRS Guidance.

[abctax55]

@MBA   - Just FYI, you aren't charged by the word around here.

[qbteachmt]

"Done Cost Segregation ATG by IRS Guidance."

Okay, then! I guess you can mark your own response as Solved.

[abctax55]

Okay, then! I guess you can mark your own response as Solved.

@qbteachmt - thus demonstrating the *value* of the yes/no & solved buttons on the social media driven forum 🤣

[qbteachmt]

@abctax55 

Hey: done = done, from my perspective  🙂

[sjrcpa]

Not permitted for tax purposes.