Your client owns a company within a building he own on a piece of land that he also owns. He is concerned with deprecation issues for tax purposes. What cannot be depreciated for taxes?

Question

Quizplus · Accepted Answer

A client that owns a company within a building he owns on a piece of land that he also owns may not use tax depreciation on land. Property depreciation is for the property used in a trade or business or held to produce income; property must lose its value over time, and property must have a determinable life of greater than one year. Property placed in service and disposed of in the same year, land, inventory, and equipment used to build capital improvements cannot be deprecated.

Your Client Owns a Company Within a Building He Own