Recovery period for leasehold improvements set to expire.(insession)(Brief article)

Congress has anticipated a review of depreciation since 2000, but other tax policy debates have intervened. Currently, the 15-year cost recovery period for leasehold improvements has been extended, but expires on December 31, 2007. If no legislation is passed prior to this date, the leasehold improvement depreciable life of nonresidential property will jump to 39 years. IREM Members lobbied their legislators during the 2007 Capitol Hill Visit Day in support of H.R. 1591, an appropriations bill that included a leasehold improvement provision. Unfortunately, H.R. 1591 was vetoed by the President, and the House vote to override the veto fell short of the two-third majority required. IREM continues to support an extension of the 15-year cost recovery period for leasehold improvements.

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