A recent article published by Meissner Jacquet discusses a safe harbor accounting method that applies to commercial real estate or restaurant property owners undergoing a renovation. The IRS recently issued Revenue Procedure 2015-56, which applies to costs incurred in relation to remodeling and refreshing their qualified buildings.
Specifically, those who qualify are able to deduct 75% of the expenses from remodels. Taxpayers interested in using this procedure must file for an automatic change in accounting method, Form 3115, Application for Change in Accounting Method.
In the article, Phil Jelsma dives into the following helpful facts regarding the new Revenue Procedure:
- Who qualifies for a commercial property upgrade under the new procedure?
- Which costs associated with the commercial property upgrade are eligible for deduction?
- Which costs are excluded? (not eligible)
Read the full article here to learn more.