UK Leashold extension fee - depreciation

[ptax255]

Hello, client owns UK rental property for which he paid a leasehold extension fee, to extend the lease from the government another 99 years. How should this payment be depreciated?

[BobKamman]

Vacant land? Commercial?  Residential?  Depreciate it, as though it were a purchase.  There are still some of these 99-year leases in the US (I used to have a client with a percentage interest of one in DC).  

[ptax255]

Residential. Do I depreciate over 40 years as foreign property, or over 99 years?

[George4Tacks]

I would use amortization for 99 years. IRC 178 for lease amortization. 

[sjrcpa]

I think Bob is correct.

Somewhere in my memory of Accounting 101 a 99 year lease = ownership.

So it would be 40 years, if it is depreciable at all.