Commercial Property Depreciation?

Question

When depreciation a commerical property, is it based on purchased cost or assess value of a improvement? Thanks.

Answer 1

Improvements are depreciated on line item over 39 years. With straight line depreciation you are allowed to depreciate the cost of the improvement over 39 years from the finalization of the improvement. So you may have purchase the property 10 years ago, a new roof 5 years ago and added an elevator last year. Each "line item" is depreciated from it's finalization date be it acquisition or improvement each is treated individually.