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depreciation

MBA
Level 2

How to depreciate indoor gaming arena?

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1 Solution

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MBA
Level 2

Done Cost Segregation ATG by IRS Guidance.

View solution in original post

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15 Comments 15
Just-Lisa-Now-
Level 15
Level 15

The building itself?


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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MBA
Level 2

Arena was special build for laser tag game

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Just-Lisa-Now-
Level 15
Level 15

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.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
MBA
Level 2

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

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Just-Lisa-Now-
Level 15
Level 15

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?


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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sjrcpa
Level 15

Not permitted for tax purposes.


Ex-AllStar
MBA
Level 2

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

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MBA
Level 2

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

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abctax55
Level 15

deleted.... 

"*******Tax software is no substitute for a professional tax preparer*******
( Generic Comment )"
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qbteachmt
Level 15

"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?

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MBA
Level 2

Done Cost Segregation ATG by IRS Guidance.

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abctax55
Level 15

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

"*******Tax software is no substitute for a professional tax preparer*******
( Generic Comment )"
qbteachmt
Level 15

"Done Cost Segregation ATG by IRS Guidance."

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

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"Level Up" is a gaming function, not a real life function.
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abctax55
Level 15

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 🤣

"*******Tax software is no substitute for a professional tax preparer*******
( Generic Comment )"
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qbteachmt
Level 15

@abctax55 

Hey: done = done, from my perspective  🙂

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"Level Up" is a gaming function, not a real life function.
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