Leasehold Improvements Depreciation Calculator
Calculate depreciation for Qualified Leasehold Improvements.
⚠️ QLI Qualification Warning
May not qualify as Qualified Leasehold Improvement. Check requirements below.
If disqualified, must use 39-year straight-line building depreciation.
First Year Depreciation
Bonus:$ 60000
MACRS:$ 4000
Total:$ 64000
Recovery Period:15 years
Bonus Rate:60%
Depreciation Schedule
| Year | Bonus | MACRS | Total | Remaining |
|---|---|---|---|---|
| 2024 | $ 60000 | $ 4000 | $ 64000 | $ 36000 |
| 2025 | $ 0 | $ 5400 | $ 5400 | $ 30600 |
| 2026 | $ 0 | $ 4590 | $ 4590 | $ 26010 |
| 2027 | $ 0 | $ 3902 | $ 3902 | $ 22109 |
| 2028 | $ 0 | $ 3316 | $ 3316 | $ 18792 |
| 2029 | $ 0 | $ 2819 | $ 2819 | $ 15973 |
| 2030 | $ 0 | $ 2396 | $ 2396 | $ 13577 |
| 2031 | $ 0 | $ 2037 | $ 2037 | $ 11541 |
| 2032 | $ 0 | $ 1731 | $ 1731 | $ 9810 |
| 2033 | $ 0 | $ 1471 | $ 1471 | $ 8338 |
Tax Benefit
First Year:$ 15360
Total:$ 24000
Rate:24%
QLI vs Regular Building
QLI First Year:$ 64000
Building (39y):$ 2564
QLI Benefit:$ 61436
QLI gets 15-year MACRS instead of 39-year straight-line. Plus bonus depreciation.
Recommendation
Warning: May not qualify as QLI. If disqualified, use 39-year straight-line building depreciation. Check lease requirements.
QLI Requirements
Interior: Interior of nonresidential building
Lease: Lease term at least 39 years (original or assigned)
Lessee: Made by lessee or lessor of that space
Nonstructural: Not structural components of building
Excluded: Not elevators, escalators, internal common areas
Improvement Types
Qualified Interior Improvements: interior walls, floors, lighting, HVAC, plumbing
Leasehold Improvements Key Points
- QLI: 15-year MACRS (not 39y)
- Restaurant: 15-year always
- Retail: 15-year for interior
- Lease term: 39+ years required
- Interior of nonresidential
- Bonus depreciation eligible
- Not structural components
- Lessee or lessor makes
- Amortize if lease shorter
- Form 4562 for reporting