Leasehold improvements

I don't understand. The statute doesn't say anything about knowledge, good faith or anything else. It just says that any tenant-made improvements that benefit the landlord's profit at the end of the lease do so with no tax consequences or recognition.

Stu

Okay, I think I get the picture now. To illustrate:

One of my clients a couple of months ago had to erect a more permanent fence to hide all the cars parked in front of his repair business, thus making the property less unsightly from the road.

1. If the landlord agreed to pay for the fence with client actually paying for it with a corresponding reduction in rent, then it would be income to the landlord with his own corresponding depreciation.

1. As it is, landlord didn't care to pay for it so client had to and we will take depreciation for the fence on a 15 year basis for the next 5 or 7 years until client quits and then write the balance off. Landlord at that time gets the fence of course with no income per section 109.

ChEAr$, Harlan Lunsford, EA n LA

Ok, I'll agree with that.

Good. Thanks.

No, you bought a desk.

Yes, because you bought a book.

Dick

No, I bought the desk and contents. That's what they sold, that's what I took, that's what I got.

I bought a box with content (known to be books, but details not known). Precisely how much of the detail has to be known at the time of purchase? Suppose I buy the desk with the painting, and we both know there's a painting in it, but only later is it determined to be a Monet?

Seth