Tuesday, March 25, 2008

Congress Offers Extra Perk To Real Estate Industry

Similar to the incentives Congress provided after the Sept. 11 attacks, the New Economic Stimulus Act provides extra perk for the real estate industry:

Since 2006, only 2.5 percent of the costs of those improvements could be written off in the first year. The remainder had to be spread out over 39 years.

The new "bonus depreciation" schedule provides much quicker relief, bringing back the most generous depreciation rules that were in place after the Sept. 11 terrorist attacks.

With the change, landlords and commercial tenants can now write off 50 percent of the cost for "qualified leasehold improvements" in the first year alone, as long as the improvements are completed by the end of this year. The rest is written off in declining increments over just 15 years.
Read more here....



Deal Junkie. Copyright 2008 All Rights Reserved Revolution Two Church theme by Brian Gardner Converted into Blogger Template by Bloganol dot com