April 21, 2020

2020 – 04/20

The IRS has issued guidance for the bonus depreciation technical correction under the Coronavirus Aid, Relief and Economic Security (CARES) Act. The CARES Act provided a technical correction to the Tax Cuts and Jobs Act’s (TCJA’s) “retail glitch” by designating qualified improvement property (QIP) placed in service after 2017 to have a 15-year modified accelerated cost recovery system (MACRS) recovery period and, in turn, qualify for 100% bonus depreciation through 2023. Under the TCJA, the statutory language didn’t define QIP as 15-year property, so QIP defaulted to a 39-year recovery period, making it ineligible for bonus depreciation. Read the guidance here: http://bit.ly/3ajaT89