When we announced a week ago that we would be running a short series on 2020 Last-Minute Year-End General Business Income Tax Deductions we had no idea the amount of interest it would spark. Please allow us to present the final tax tip of this series. Given the positive feedback we are going to look into publishing a short monthly guide of tax savings tips. Stay tuned!
But for now, Tip #7
In the CARES Act, Congress finally fixed the qualified improvement property (QIP) error that it made in the TCJA.
QIP is any improvement made by the taxpayer to the interior portion of a building that is non-residential real property (think office buildings, retail stores, and shopping centers) if you place the improvement in service after the date you place the building in service. If you have such property on an already filed 2018 or 2019 return, it’s on that return as 39-year property. You now have to change it to 15-year property, eligible for both bonus depreciation and Section 179 expensing.
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