Message Font: Serif | Sans-Serif
No. of Recommendations: 0
RedRobin37: I assume we will depcreciate house over 25 yrs but how to expense land?

Peter: Since you are talking about a Bed & Breakfast business and not residential real estate, I think you're looking at 39.5 years of depreciation on the building. The land is not depreciable. You will recover the cost of the land when you dispose of the lease (or the lease expires 99 years from now!).

I agree with Pter that the building depreciates at 39.5 years. The lease on the land should be amortized over the life of the lease(99 years).

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.