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).
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