15-year recovery period for certain restaurant property.

AuthorRohrs, Jane

Before the enactment of the AJCA, if a leasehold improvement constituted an addition or improvement to nonresidential real property already placed in service, the improvement had to be depreciated using the straight-line method over 39 years, under Sec. 168.

New Law

AJCA Section 211 requires that "qualified restaurant property" be depreciated using the straight-line method and a 15-year recovery period. Qualified restaurant property is defined as any improvement to a building if such improvement is placed in service more than three years after the date the...

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