USA Section 179 and Leasehold Improvements

[KarmaForHire]

Hi there, I'm fairly new to the accounting world and have a question regarding the depreciation of leasehold improvements. In 2013, a client of ours had a few thousand dollars in leasehold improvements that we have capitalized. Now, I'm trying to figure out the depreciation for the improvements and want to maximize how much depreciation is taken this year. I know I am able to apply the 50% bonus depreciation, but I was wondering if it would be eligible for section 179 treatment. The improvements were to convert a single office into two office spaces for an employee. (Basically converting a single room into two rooms). I can't seem to find too much information regarding the treatment of leasehold improvements so any help would be greatly appreciated.

Thanks!

 

[The Finance Writer]

The property you describe sounds like qualified leasehold improvement property for section 179. I believe that provision expires at the end of 2013. The property is eligible for Section 179 and the bonus depreciation if placed in service before January 1, 2014.