§ 1.162-11T - Rentals (temporary).

(a) [Reserved] For further guidance, see § 1.162-11(a).

(b) Improvements by lessee on lessor's property. The cost to a taxpayer of erecting buildings or making permanent improvements on property of which the taxpayer is a lessee is a capital expenditure and is not deductible as a business expense. For the rules regarding improvements to leased property where the improvements are tangible property, see § 1.263(a)-3T(f)(1). For the rules regarding depreciation or amortization deductions for leasehold improvements, see § 1.167(a)-4T.

(c) Effective/applicability date—(1) In general. This section applies to taxable years beginning on or after January 1, 2014. Section 1.162-11 as contained in 26 CFR part 1 edition revised as of April 1, 2011, applies to taxable years beginning before January 1, 2014.

(2) Optional early application. A taxpayer may choose to apply this section to taxable years beginning on or after January 1, 2012.

(d) Expiration date. The applicability of this section expires on December 23, 2014.