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Can signage be capitalized?

Answers

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?

Anonymous
(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
Company: SBAConsulting.com
LinkedIn Profile
(President & CFO, SBAConsulting.com) |

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

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