QUALIFIED IMPROVEMENT PROPERTY

摘要

THE CORONAVIRUS AID, RELIEF AND ECONOMIC Security (CARES) Act (PL. 116-136) makes qualified improvement property (QIP) eligible for bonus depreciation once again, fixing the glitch that resulted from the Tax Cuts and Jobs Act (TCJA) of 2017 (P.L. 115-97). As a result of the technical correction, taxpayers with QIP costs incurred since the TCJA may be using an impermissible method of accounting and may need to switch to a different (permissible) method, which generally requires permission from the Internal Revenue Service (IRS). Rev. Proc. 2020-25 provides relief to taxpayers that placed depreciable property in service during their 2018, 2019, or 2020 taxable year and filed timely federal income tax returns for the placed-in-service year of such depreciable property on or before April 17, 2020.