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Depreciation: How To Treat Tax-Exempt Non-Residential Real Estate



Depreciation: How To Treat Tax-Exempt Non-Residential Real Estate

Non-profit tenants are popping up all over, and CPAs are often confused about depreciation of these properties.  We’ve gotten so many questions lately… How do I treat this tax-exempt non-residential real estate?  MACRS or ADS?  What about the associated tax-exempt tangible property? What are the appropriate class lives? Is Bonus in play at all? What about QIP?

Our new Flowchart for Tax-Exempt Use Property can help guide users through the decision-making process.  The two-sided, color-coded layout makes it easy to distinguish non-exempt tangible property (orange side) and non-residential real estate (blue side).  Then it’s just a matter of answering the questions and following the prompts.  Like all our Tools, this Flowchart condenses a great deal of information and presents it in a straightforward, user-friendly manner.  Click here to download a copy of the new Flowchart for Tax-Exempt Use Property.

Plus, for more on this subject, check out our latest podcast episode – “Depreciation and the Non-Profit Tenant: What’s the Scoop?”  Click here to listen!

Have a question? Contact Bruce Johnson, Capstan Tax Strategies.

As a founding partner at Capstan Tax Strategies, Bruce works closely with commercial real estate owners, investors, and accounting firms to provide practical, creative and client-specific solutions.

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