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Level 2

How to classify building signage for leased/rented space.

We will be spending about $3500 for retail storefront signage in a space that we are leasing.  The signage will be affixed to the front of the building but once the lease is up, it can be taken down.  How do I classify the signage - asset or expense.  If asset, what is the depreciation class life?  Thanks!

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Community Champion

How to classify building signage for leased/rented space.

Leasehold improvements are depreciable assets. Some depreciable assets can be written off as Section 179 all at once. But usually anything attached to a building gets a write down life equivalent to the building it is attached to. You can look up life of signs on irs.gov. 

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Level 2

How to classify building signage for leased/rented space.

Thanks for the quick reply.  Just to further my own understanding, I thought leasehold improvements were typically left behind when the tenant (me) moves out of the building.  This signage will be installed in a way that will make it removable without damage to the building.

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