Building  Owners  and  Managers  Association  International

Building Owners and Managers Association International

BOMA International Applauds Congress for Extending Leasehold Depreciation 15-Year Timeline

January 2, 2013

FOR IMMEDIATE RELEASE
 

(WASHINGTON, D.C. – January 2, 2012) The Building Owners and Managers Association (BOMA) International congratulates Congress for passing an extension of the 15-year timeline for depreciating leasehold improvements for years 2012 and 2013. The tax extenders package was part of the American Taxpayer Relief Act passed on January 1, 2013.

The provision permits building owners to depreciate leasehold improvements over 15 years rather than a 39 year schedule, which more closely reflects the realities of a marketplace where leasehold improvements typically don’t last longer than 15 years before they are replaced.

“Continuing the leasehold depreciation 15-year schedule helps a recovering economy by increasing investment in commercial real estate and employment in related industries, such as architectural and design firms, construction companies, building suppliers and other construction-related services,” said BOMA International Chair Joseph W. Markling, managing director of Strategic Accounts at CBRE.

A 15-year leasehold depreciation schedule spurs job creation and economic growth as almost $250 billion is invested in commercial real estate improvements annually with $15 billion of that amount going to leasehold improvements. Depreciating improvements over 39 years reduces investment in improvements.

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About BOMA International
The Building Owners and Managers Association (BOMA) International is a federation of 93 BOMA U.S. associations, BOMA Canada and its 11 regional associations and 13 BOMA international affiliates.  Founded in 1907, BOMA represents the owners and managers of all commercial property types, including nearly 10 billion square feet of U.S. office space that supports 3.7 million jobs and contributes $205 billion to the U.S. GDP.  Its mission is to advance the interests of the entire commercial real estate industry through advocacy, education, research, standards and information.  Find BOMA online at www.boma.org.

Contact
Courtney C. McKay
Manager of Communications & Marketing
BOMA International
(202) 326-6352
cmckay@boma.org