Qualified Leasehold Improvement, Restaurant and Retail Property Matrices

 

Qualified Leasehold Improvement Property

 

Applicable PIS Dates Recovery Period Bonus Depr Eligible 3 Year Rule Sec 179
<=$250K*
10/23/04 - 12/31/04 15 Years / SL Yes Yes No
1/1/05 - 12/31/07 15 Years / SL No Yes No
1/1/08 - 12/31/09 15 Years / SL Yes Yes No
1/1/10 - 12/31/11 15 Years / SL Yes Yes Yes

Note: Improvements must be made by lessee or lessor pursuant to a lease of the interior portion of the building.

 

Qualified Restaurant Property

 

Applicable PIS Dates Recovery Period Bonus Depr Eligible 3 Year Rule Sec 179
<=$250K*
10/23/04 - 12/31/04 15 Years / SL Yes Yes No
1/1/05 - 12/31/07 15 Years / SL No Yes No
1/1/08 - 12/31/08 15 Years / SL Yes Yes No
1/1/09 - 12/31/09 15 Years / SL No No No
1/1/10 - 12/31/11 15 Years / SL No No Yes

Note: Building or building improvements qualify if more than 50% devoted to food preparation.

 

Qualified Retail Property

 

Applicable PIS Dates Recovery Period Bonus Depr Eligible 3 Year Rule Sec 179
<=$250K*
1/1/09 - 12/31/09 15 Years / SL No Yes No
1/1/10 - 12/31/11 15 Years / SL No Yes Yes

Note: Includes improvements made to interior portion.

* For tax years beginning in 2010 and 2011, up to $250k of qualified real property may be treated as Code Sec. 179 property. The dollar limitation on the expense deduction is $500k for these years.

Ordering Rules: The Code Sec. 179 expense deduction is computed first, then bonus depreciation is applied to the remaining basis.