Real estate is a prominently discussed asset in the U.S. Treasury Department’s report to Congress on “Depreciation Recovery Periods and Methods.” The report discusses leasehold improvements and their 39-year depreciation time frame.
Concerned with this issue, and specifically with the unduly long depreciation time frames, Building Owners & Managers Association (BOMA) International and its real estate association colleagues, some time ago commissioned an analysis by Deloitte and Touche. The opinion was that the long depreciation time frames penalize the real estate industry.
The Deloitte analysis and BOMA comments were given to the U.S. Treasury to express the concerns of real estate. According to BOMA International many of the issues and concerns raised in the Deloitte and Touche analysis are outlined in the Treasury Department’s report to Congress. It is BOMA’s hope that it can convince Congress, by virtue of the Treasury study, to hold hearings on the subject and correct such items as leasehold improvements.
Further information: currents@boma.org. To review the Treasury Department’s study, go to the web site: http://.treas.gov/taxpolicy/library/decreci8.doc To see the real estate analysis crafted by Deloitte and Touche, go to the following web address: http://www.usdeloitte.com/realest/Depreciation Study/taxdepre.pdf.
Based on a report from BOMA’s Potomac Currents Newsletter
