TaxTMI 
TaxTMI 
depreciation on assets leasesd , wheather depreciation allowed to lessor.
Depreciation allowability
27 Jul 2009 
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Depreciation on leased assets typically vests with the lessor; lessee may claim depreciation for leasehold improvements.
Depreciation on leased assets is generally allowable to the lessor, while additions made to leased property by the lessee (leasehold improvements) may entitle the lessee to claim depreciation on those additions; a revenue circular clarifies that accounting standards do not override statutory depreciation provisions. (AI Summary)
Depreciation on leased assets is generally allowable to the lessor, while additions made to leased property by the lessee (leasehold improvements) may entitle the lessee to claim depreciation on those additions; a revenue circular clarifies that accounting standards do not override statutory depreciation provisions. (AI Summary)