In 2018, Noah began leasing Building A for The Perfect Balance, a fitness center. During the time he was in Building A, Noah completed improvements that cost a total of $125,000. He took a depreciation deduction in the amount of $33,333. He also purchased $335,000 in equipment, for which he has taken $200,000 in depreciation and section 179 deductions. In 2022, Noah moved out of Building A and into Building B. Upon moving into Building B, Noah spent $85,945 for interior renovations. He then moved all the equipment from Building A to Building B.

How will Noah handle the following items on his tax return?

a)

b)

c)

d)

Building A improvements Depreciation for Building A improvements Equipment Building B renovations