Can signage be capitalized?
Answers
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?
1
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?
I would think the signage would be a leasehold improvement if the building wasn't owned.