Publication 535 |
2001 Tax Year |
Barrier Removal Costs
The cost of an improvement to a business asset is normally a
capital expense. However, you can choose to deduct the costs of making
a facility or public transportation vehicle more accessible to and
usable by those who are disabled or elderly. You must own or lease the
facility or vehicle for use in connection with your trade or business.
A facility is all or any part of buildings, structures, equipment,
roads, walks, parking lots, or similar real or personal property. A
public transportation vehicle is a vehicle, such as a bus or railroad
car, that provides transportation service to the public (including
service for your customers, even if you are not in the business of
providing transportation services).
You cannot deduct any costs that you paid or incurred to completely
renovate or build a facility or public transportation vehicle or to
replace depreciable property in the normal course of business.
Deduction limit.
The most you can deduct as a cost of removing barriers to the
disabled and the elderly for any tax year is $15,000. However, you can
add any costs over this limit to the basis of the property and
depreciate these excess costs.
Partners and partnerships.
The $15,000 limit applies to a partnership and also to each partner
in the partnership. A partner can allocate the $15,000 limit in any
manner among the partner's individually incurred costs and the
partner's distributive share of partnership costs. If the partner
cannot deduct the entire share of partnership costs, the partnership
can add any costs not deducted to the basis of the improved property.
A partnership must be able to show that any amount added to basis
was not deducted by the partner and that it was over a partner's
$15,000 limit (as determined by the partner). If the partnership
cannot show this, it is presumed that the partner was able to deduct
the distributive share of the partnership's costs in full.
Example.
John Duke's distributive share of ABC partnership's deductible
expenses for the removal of architectural barriers was $14,000. John
had $12,000 of similar expenses in his sole proprietorship. He chose
to deduct $7,000 of them. John allocated the remaining $8,000 of the
$15,000 limit to his share of ABC's expenses. John can add the excess
$5,000 of his own expenses to the basis of the property used in his
business. Also, if ABC can show that John could not deduct $6,000
($14,000 - $8,000) of his share of the partnership's expenses
because of how John applied the limit, ABC can add $6,000 to the basis
of its property.
Qualification standards.
You can deduct your costs as a current expense only if the barrier
removal meets one or more of the following specific standards for
improved access for the disabled or the elderly.
Grading.
The ground must be graded to the level of a normal entrance to make
the facility accessible to people with physical disabilities.
Walks.
- A public walk must be at least 48 inches wide and cannot
slope more than 5%. A fairly long walk of maximum or near maximum
steepness must have level areas at regular intervals. A walk or
driveway must have a nonslip surface.
- A walk must have a continuing common surface and must not
have steps or sudden changes in level.
- Where a walk crosses another walk, a driveway, or a parking
lot, they must blend to a common level. However, this does not require
the removal of curbs that are a safety feature for those with
disabilities, especially blindness.
- A sloping walk must have a level platform at the top and at
the bottom. If a door swings out onto the platform toward the walk,
the platform must be at least 5 feet deep and 5 feet wide. If a door
does not swing onto the platform or toward the walk, the platform must
be at least 3 feet deep and 5 feet wide. A platform must extend at
least 1 foot past the opening side of any doorway.
Parking lots.
- At least one accessible parking space close to a facility
must be set aside and marked for use by persons with disabilities.
- A parking space must be open on one side to allow room for a
person in a wheelchair or on braces or crutches to get in and out of a
car onto a level surface suitable for wheeling and walking.
- A parking space marked for use by persons with disabilities,
when placed between two regular diagonal or head-on parking spaces,
must be at least 12 feet wide.
- A parking space must be located so that a person in a
wheelchair or on braces or crutches does not have to wheel or walk
behind parked cars.
Ramps.
- A ramp must not rise more than 1 inch in each foot of
length.
- A ramp must have at least one handrail that is 32 inches
high, measured from the surface of the ramp. The handrail must be
smooth and must extend at least 1 foot past the top and bottom of the
ramp. However, this does mean that a handrail extension that is itself
a hazard is required.
- A ramp must have a nonslip surface.
- A ramp must have a level platform at the top and at the
bottom. If a door swings out onto the platform or toward the ramp, the
platform must be at least 5 feet deep and 5 feet wide. If a door does
not swing onto the platform or toward the ramp, the platform must be
at least 3 feet deep and 5 feet wide. A platform must extend at least
1 foot past the opening side of any doorway.
- A ramp must have level platforms no farther than 30 feet
apart and at any turn.
- A curb ramp with a nonslip surface must be provided at an
intersection. The curb ramp must not be less than 4 feet wide and must
not rise more than 1 inch in each foot of length. The two surfaces
must blend smoothly.
Entrances.
A building must have at least one main entrance that a person in a
wheelchair can use. The entrance must be on a level accessible to an
elevator.
Doors and doorways.
- A door must have a clear opening of at least 32 inches and
must be operable by a single effort.
- The floor on the inside and outside of a doorway must be
level for at least 5 feet from the door in the direction the door
swings and must extend at least 1 foot past the opening side of the
doorway.
- There must not be any sharp slopes or sudden changes in
level at a doorway. The threshold must be flush with the floor. The
door closer must be selected, placed, and set so as not to impair the
use of the door by persons with disabilities.
Stairs.
- Stairsteps must have round nosing of between 1 and 1 1/2 inch radius.
- Stairs must have a handrail 32 inches high, measured from
the tread at the face of the riser.
- Stairs must have at least one handrail that extends at least
18 inches past the top step and the bottom step. But this does not
mean that a handrail extension that is itself a hazard is required.
- Each step must not be more than 7 inches high.
Floors.
- Floors must have a nonslip surface.
- Floors on each story of a building must be on the same level
or must be connected by a ramp of the type discussed
previously.
Toilet rooms.
- A toilet room must have enough space for persons in
wheelchairs to move around.
- A toilet room must have at least one toilet stall that:
- Is at least 36 inches wide,
- Is at least 56 inches deep,
- Has a door, if any, that is at least 32 inches wide and
swings out,
- Has handrails on each side that are 33 inches high and
parallel to the floor, 1 1/2 inches in outside diameter, 1 1/2 inches away from the wall, and fastened securely at the
ends and center, and
- Has a toilet with a seat 19 to 20 inches from the finished
floor.
- A toilet room must have, in addition to or instead of the
toilet stall described in (2), at least one toilet stall that:
- Is at least 66 inches wide,
- Is at least 60 inches deep,
- Has a door, if any, that is at least 32 inches wide and
swings out,
- Has a handrail on one side, 33 inches high and parallel to
the floor, 1 1/2 inches in outside diameter, 1 1/2 inches away from the wall, and fastened securely at the ends
and center, and
- Has a toilet with a seat 19 to 20 inches from the finished
floor with a centerline 18 inches from the side wall on which the
handrail is located.
- A toilet room must have sinks with narrow aprons. Drain
pipes and hot water pipes under a sink must be covered or insulated.
- A mirror and a shelf above a sink must not be higher than 40
inches above the floor, measured from the top of the shelf and the
bottom of the mirror.
- A toilet room for men must have wall-mounted urinals with
the opening of the basin 15 to 19 inches from the finished floor or
floor-mounted urinals that are level with the main floor.
- Towel racks, towel dispensers, and other dispensers and
disposal units must not be mounted higher than 40 inches from the
floor.
Water fountains.
- A water fountain and a cooler must have up-front spouts and
controls.
- A water fountain and a cooler must be hand-operated or
hand-and-foot-operated.
- A water fountain mounted on the side of a floor-mounted
cooler must not be more than 30 inches above the floor.
- A wall-mounted, hand-operated water cooler must be mounted
with the basin 36 inches from the floor.
- A water fountain must not be fully recessed and must not be
set into an alcove unless the alcove is at least 36 inches wide.
Public telephones.
- A public telephone must be placed so that a person in a
wheelchair can reach the dial and the headset.
- A public telephone must be equipped for a person who is
hearing impaired and it must be identified as such with instructions
for its use.
- Coin slots of public telephones must not be more than 48
inches from the floor.
Elevators.
- An elevator must be accessible to, and usable by, persons
with disabilities and the elderly on the levels they use to enter the
building and all levels and areas normally used.
- Cab size must measure at least 54 by 68 inches to allow for
turning a wheelchair.
- Door clear opening width must be at least 32 inches.
- All controls needed must be within 48 to 54 inches from the
cab floor. These controls must be usable by a person with a visual
impairment and must be identifiable by touch.
Controls.
Switches and controls for light, heat, ventilation, windows,
draperies, fire alarms, and all similar controls needed or used often
must be placed within the reach of a person in a wheelchair. These
switches and controls must not be higher than 48 inches from the
floor.
Identification.
- Raised letters or numbers must be used to identify rooms and
offices. These identification marks must be placed on the wall to the
right or left of the door at a height of 54 to 66 inches above the
finished floor.
- A door that might prove dangerous if a visually impaired
person used it, such as a door leading to a loading platform, boiler
room, stage, or fire escape, must be identifiable by touch.
Warning signals.
- An audible warning signal must be accompanied by a
simultaneous visual signal for the benefit of hearing impaired
persons.
- A visual warning signal must be accompanied by a
simultaneous audible signal for the benefit of visually impaired
persons.
Hazards.
Hanging signs, ceiling lights, and similar objects and fixtures
must be at least 7 feet above the floor.
International accessibility symbol.
The international accessibility symbol must be displayed on routes
to a wheelchair-accessible entrance to a facility, at the entrance
itself, and at wheelchair-accessible entrances to public
transportation vehicles. This symbol is the outline drawing of a
person in a wheelchair and is shown in the following illustration.
Rail facilities.
- A rail facility must have a fare control area with at least
one entrance with a clear opening at least 36 inches wide.
- A boarding platform edge bordering a drop-off or other
dangerous condition must be marked with a strip of floor material
different in color and texture from the rest of the floor surface. The
gap between the boarding platform and vehicle doorway must be as small
as possible.
Buses.
- A bus must have a mechanism such as a lift or ramp to enter
the bus and enough clearance to let a wheelchair user reach a secure
location.
- The bus must have a wheelchair-securing device. However,
this does not mean that a wheelchair-securing device that is itself a
barrier or hazard is required.
- The vertical distance from a curb or from street level to
the first front doorstep must not be more than 8 inches. Each front
doorstep after the first step up from the curb or street level must
also not be more than 8 inches high. The steps at the front and rear
doors must be at least 12 inches deep.
- The bus must have clearly legible signs that indicate that
seats in the front of the bus are priority seats for persons who have
a disability or are elderly. The signs must encourage other passengers
to make these seats available to those having priority who wish to use
them.
- Handrails and stanchions must be provided in the entrance to
the bus so that passengers who have a disability or are elderly can
grasp them from outside the bus and use them while boarding and paying
the fare. This system must include a rail across the front of the bus
interior that passengers can lean against while paying fares. Overhead
handrails must be continuous except for a gap at the rear doorway.
- Floors and steps must have nonslip surfaces. Step edges must
have a band of bright contrasting color running the full width of the
step.
- A stepwell next to the driver must have, when the door is
open, at least 2 foot-candles of light measured on the step tread.
Other stepwells must have, at all times, at least 2 foot-candles of
light measured on the step tread.
- The doorways of the bus must have outside lighting that
provides at least 1 foot-candle of light on the street surface for a
distance of 3 feet from the bottom step edge. This lighting must be
below window level and must be shielded to protect the eyes of
entering and exiting passengers.
- The fare box must be located as far forward as practical and
must not block traffic in the vestibule.
Rapid and light rail vehicles.
- Passenger doorways on the vehicle sides must have clear
openings at least 32 inches wide.
- Audible or visual warning signals must be provided to alert
passengers who have a disability or are elderly of closing doors.
- Handrails and stanchions must permit safe boarding, moving
around, sitting and standing assistance, and getting off by persons
who have a disability or are elderly. On a level-entry vehicle,
handrails, stanchions, and seats must be located to allow a wheelchair
user to enter the vehicle and position the wheelchair in a location
that does not block the movement of other passengers. On a vehicle
with steps that must be used in boarding, handrails and stanchions
must be provided in the entrance so that persons who have a disability
or are elderly can grasp them from outside the vehicle and use them
while boarding.
- Floors must have nonslip surfaces. Step edges on a light
rail vehicle must have a band of bright contrasting color running the
full width of the step.
- A stepwell next to the driver must have, when the door is
open, at least 2 foot-candles of light measured on the step tread.
Other stepwells must have, at all times, at least 2 foot-candles of
light measured on the step tread.
- Doorways on a light rail vehicle must have outside lighting
that provides at least 1 foot-candle of light on the street surface
for a distance of 3 feet from the bottom step edge. This lighting must
be below window level and must be shielded to protect the eyes of
entering and exiting passengers.
Other barrier removals.
To be deductible, expenses of removing any barrier not covered by
the above standards must meet all three of the following tests.
- The removed barrier must be a substantial barrier to access
or use of a facility or public transportation vehicle by persons who
have a disability or are elderly.
- The removed barrier must have been a barrier for at least
one major group of persons who have a disability or are elderly (such
as people who are blind, deaf, or wheelchair users).
- The barrier must be removed without creating any new barrier
that significantly impairs access to or use of the facility or vehicle
by a major group of persons who have a disability or are elderly.
How to make the choice.
If you choose to deduct your costs for removing barriers to the
disabled or the elderly, claim the deduction on your income tax return
(partnership return for partnerships) for the tax year the expenses
were paid or incurred. Identify the deduction as a separate item. The
choice applies to all the qualifying costs you have during the year,
up to the $15,000 limit. If you make this choice, you must maintain
adequate records to support your deduction.
For your choice to be valid, you generally must file your return by
its due date, including extensions. However, if you timely filed your
return for the year without making the choice, you can still make the
choice by filing an amended return within 6 months of the due date of
the return (excluding extensions). Clearly indicate the choice on your
amended return and write "Filed pursuant to section
301.9100-2." File the amended return at the same address you
filed the original return. Your choice is irrevocable after the due
date, including extensions, of your return.
Disabled access credit.
If you make your business accessible to persons with disabilities
and your business is an eligible small business, you may be able to
take the disabled access credit. If you choose to take the credit, you
must reduce the amount you deduct or capitalize by the amount of the
credit.
For more information about the disabled access credit, see Form
8826.
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