Landlords Get Construction Cost Benefit from Economic Stimulus Act

Washington, D.C.–The Economic Stimulus Act includes a bonus for landlords and commercial tenants, according to MSNBC.Congress has upped the amount of construction costs allowed for write-offs in the first year for commercial or residential rental property improvements to help the troubled real estate industry. Just 2.5 percent of improvement costs were allowed to be written off since 2006–the remainder needed to be spread out over 39 years.The new schedule is similar to the depreciation rules put in place after Sept. 11. Landlords and commercial tenants now can deduct 50 percent of the cost for “qualified leasehold improvements” in the first year–if the improvements are completed by year’s end. The remainder can be written off over 15 years in declining increments. Wait until 2009, and just $50,000 of the improvements will be able to be written off, according to MSNBC.