What is the accelerated period for the CR Deduction?
The taxpayer may elect one of two permitted accelerated deduction methods. A taxpayer can elect either to (a) deduct one-half of the CREs for the taxable year the building is placed in service or (b) amortize all the CREs ratably over a 120-month period beginning the month the building is placed in service. The method selected will depend on a taxpayer’s particular tax Commercial Revitalization Deduction situation. This special deduction provision would be in lieu of depreciating the property over a period up to 39 years.
