Demolition and your tax basis: What you need to know

Description

Abstract: With the commercial real estate market on the upswing in many parts of the country, investors and developers are again turning to properties with older buildings on them for development opportunities. IRC Section 280B and changes in the final tangible property regulations affect how to preserve depreciation deductions. This article highlights what investors and developers need to know before demolishing a newly purchased building. A sidebar looks at the tax benefits of partial dispositions of property.