The Tax Cuts and Jobs Act of 2017 improved upon rules related to depreciating commercial property. Qualified Improvement Property is defined as any improvement to an interior portion of a building that is nonresidential real property as long as the improvement is placed in service after the building was first placed in service by any taxpayer with a few exclusions. These items are now depreciable over 15 years, down from 39 years. This makes them eligible for both Section 179 expensing and 100% bonus depreciation. Also added to allowable section 179 assets is Qualified Real Property which is defined as improvements to non-residential real property systems such as the roof, heating, ventilation, air conditioners, fire protection, alarm and security systems. This is a great incentive to perform remodeling projects which you may have been putting off.
As always, check with the tax professionals at Ketel Thorstenson CPAs for these and other tax matters because each situation is different. Don’t navigate the difficult and ever changing tax codes and legislation on your own. KTLLP CPAs and tax professionals receive advanced training and continuing education all year long to keep our service on the forefront of the tax industry.