A taxpayer acquires a commercial building and spends additional amounts on improvements. The building is then used mainly in an industrial process that qualifies under a specific building allowance provision. Which factor is most important in determining whether the improvement cost may also qualify?

Question

A   taxpayer   acquires   a   commercial   building   and   spends   additional   amounts   on   improvements.   The   building   is   then   used   mainly   in   an   industrial   process   that   qualifies   under   a   specific   building   allowance   provision.   Which   factor   is   most   important   in   determining   whether   the   improvement   cost   may   also   qualify?

Accepted Answer

Whether   the   improvements   are   capital   in   nature   and   used   in   a   qualifying   manner   under   the   relevant  allowances section .

Answer

Whether   the   seller   previously   claimed   allowances   on   the   same   building

Answer

What the building is used for

Answer

Whether   the   taxpayer   financed   the   improvements   with   debt   rather   than   cash.

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A taxpayer acquires a commercial building and spends additiona...

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