more-arw search

Q&A Forum

Can signage be capitalized?


Chris Shumate
Title: Accounting Manager
Company: Dominion Development Group, LLC
LinkedIn Profile
(Accounting Manager, Dominion Development Group, LLC) |

Generally speaking, yes. How it's classified and at which useful life it will be classified at depends on the signage.

If it's a monument signage attached to the ground, such as an entrance to the business, it can be considered a land improvement and capitalized at a 15-year life.

If it's something that is attached to a building (and it's material in cost) it will either be a 27.5 or 39-year capitalized item. The year differences is due to the type of building and its uses.

What kind of signage are you talking about?

(Controller) |

If you don't own the building and the sign is attached to the building wouldn't you depreciate it over the remaining lease term?

Topic Expert
Wayne Spivak
Title: President & CFO
LinkedIn Profile
(President & CFO, |

I would think the signage would be a leasehold improvement if the building wasn't owned.


Get Free Membership

By signing up, you will receive emails from Proformative regarding Proformative programs, events, community news and activity. You can withdraw your consent at any time. Contact Us.

Business Exchange

Browse the Business Exchange to find information, resources and peer reviews to help you select the right solution for your business.

Learn more

Contribute to Community

If you’re interested in learning more about contributing to your Proformative community, we have many ways for you to get involved. Please email to learn more about becoming a speaker or contributing to the blogs/Q&A Forum.