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Are major re-model projects capitalized and depreciated?

April 26, 2017capitalized depreciated Projects re-model

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Are major re-model projects capitalized and depreciated?

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A Major re-model projects are defined as those that cost greater than $100,000 and substantially improve the life of a building. An example would be a complete “re- do” of an office into laboratory space that costs $150,000. Again, OUS has established the depreciation schedule for these types of re-model projects, and the useful life is 20 years.