sjrcpa wrote:IRS Tax Tip 2018-68 https://www.irs.gov/newsroom/tax-reform ... nesses-now IRS appears to accept the legislative intent.
sjrcpa wrote:Wiles and Tax Me Up-I was at a seminar yesterday and the speaker-a knowledgable local tax attorney, siad this indicated IRS accepts the legislative intenet that nonstructural improvements are generally 15 year property eligible for 100% bonus depreciation, despite the needed technical correction. I was just passing it on.
For property placed in service after December 31, 2017, section 13204 of the Act amended section 168(e) to eliminate the 15-year MACRS property classification for qualified leasehold improvement property, qualified restaurant property, and qualified retail improvement property, and amended section 168(k) to eliminate qualified improvement property as a specific category of qualified property. Because of the effective date of section 13204 of the Act (property placed in service after December 31, 2017), the proposed regulations provide that MACRS property with a recovery period of 20 years or less includes the following MACRS property that is acquired by the taxpayer after September 27, 2017, and placed in service by the taxpayer after September 27, 2017, and before January 1, 2018: (1) Qualified leasehold improvement property; (2) qualified restaurant property that is qualified improvement property; and (3) qualified retail improvement property. For the same reason, the proposed regulations provide that qualified property includes qualified improvement property that is acquired by the taxpayer after September 27, 2017, and placed in service by the taxpayer after September 27, 2017, and before January 1, 2018. Further, to account for the statutory amendments to the definition of qualified improvement property made by the Act, the proposed regulations define qualified improvement property for purposes of section 168(k)(3) (before amendment by section 13204 of the Act) and section 168(e)(6) (as amended by section 13204 of the Act).
Users browsing this forum: philly, UnlicensedTaxPro, Yellowdog and 124 guests