Tax in Ten: Qualified Improvement Property Changes Due to the CARES Act

Mark Blood, Morgan Hopkins and Sam Torchia discuss the changes due to Qualified Improvement Property (QIP) under the CARES Act.  When the Tax Cuts & Jobs Act (TCJA) was put into place in 2017 there was what many call a “retail glitch.”  The CARES Act fixed this glitch and amended the IRC to define qualified improvement property as 15-year property, and updated the alternative depreciation system (ADS) recovery period for qualified improvement property to 20 years. Finally, the Act also updated the definition of qualified improvement property to include any improvement “made by the taxpayer.”  These changes are retroactive to 2018 – i.e., to the passage of the TCJA.  However, planning related to QIP msut also consider the other measures introduced by the CARES Act, such as state decoupling.  Tune in to learn how you may benefit from the correction in the CARES Act to the “retail glitch.”



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