Can an S corp., who is a leasee, write-off leasehold improvements even if their lease continues? Ex: client did major improvements to their storefront in 2002, and they did major renovations in that same area in 2008. Can they write-off the undepreciated cost of the 2002 lease improvements as a loss? Thanks.

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NO if it originally met the status of a leasehold. They would have to move to a different location thereby abandoning the leasehold.

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