USA Fixed Assets

[E. Dantes]

I have a few questions regarding fixed assets...

1.) Are "building improvements" usually depreciated over as many years as the buildings they relate to? (i.e., 39 years for commercial buildings) Are there exceptions?

2.) Do leasehold improvements only relate to improvements to buildings? And what is the useful life of leasehold improvements? (per GAAP vs. per IRS)

 

[bklynboy]

Building improvements are depreciated over their useful ife which may be different than the building itself. For instance, if a new roof is installed with an estimated life of 20 years, then it is depreciated over 20 years and not 39 years as the building is.

If its a leasehold improvement it is depreciated over the useful life or remaining lease term (includes renewal terms that are reasonably assured) whichever is shorter.