Deprec. of R/E Improvements

Posted on by Craig Mathias

Reference: Rev. Proc. 2019-08 and IRC Sec 168(e)(6)

Limits on Section 179 election to immediately expense property placed in service after 2017 have been greatly expanded under the Tax Cuts and Jobs Act. Rev. Proc 2019-08 further clarifies that the following asset types qualify as Qualified Improvement Property (QIP) and can use Sec 179 within its limits:

  1. Any improvement to an interior portion of a nonresidential real property;
  2. Roofs
  3. Heating, ventilation and air-conditioning property
  4. Fire protection and alarm systems
  5. Security systems.

The following are NOT allowed:

  1. The enlargement of the building;
  2. Any elevator or escalator
  3. The internal structural framework of the building.