Legal Alerts/Details

Bonus Depreciation Finally Available for Qualified Improvement Property Placed in Service After 2017

April 20, 2020
  1. In certain instances, QIP acquired as far back as September 28, 2017, and placed in service after December 31, 2017 may qualify for bonus depreciation under the TCJA, and if acquired prior to September 28, 2017, bonus depreciation may have been available under prior law.
  2. See, Code § 168(e)(3)(E)(vii), providing that qualified improvement property is classified as 15-year property. 
  3. “The Cares Act Includes Many Tax Incentives for Businesses – Expands Ability to Take Losses and Deductions”, March 30, 2020, by Bahar Schippel and Bill Kastin.
  4. Code § 163(j).
  5.  Requiring, for example, that an AAR may be filed by a partnership so long as the AAR and all other affected returns reflect (i) the adjustments to taxable income from the change in depreciation of QIP and (ii) all collateral adjustments to taxable income or to tax liability.  For example, if a partnership’s AAR is made for 2018, then any original or amended tax return or AAR for any succeeding year must reflect all applicable adjustments.

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