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Section 24353 Of Article 1. Deductions From California Revenue And Taxation Code >> Division 2. >> Part 11. >> Chapter 7. >> Article 1.
24353
. (a) The basis on which exhaustion, wear and tear, and
obsolescence are to be allowed in respect of any property shall be
the adjusted basis provided in Section 24911 for the purpose of
determining the gain on the sale or other disposition of the
property.
(b) If any property is acquired subject to a lease, each of the following shall apply:
(1) No portion of the adjusted basis shall be allocated to the leasehold interest.
(2) The entire adjusted basis shall be taken into account in determining the depreciation deduction, if any, with respect to the property subject to lease.
(b) If any property is acquired subject to a lease, each of the following shall apply:
(1) No portion of the adjusted basis shall be allocated to the leasehold interest.
(2) The entire adjusted basis shall be taken into account in determining the depreciation deduction, if any, with respect to the property subject to lease.
