Spencer Accounting Group, LLC - Tax Planning and Preparation Services - West Allis, Milwaukee, Brookfield, Waukesha, United States and Saudi Arabia
  • Home
  • COVID-19
  • Tax Checklist
  • Pricing
  • Let's Chat
  • Services
    • Business Consultation
    • Tax >
      • Tax Planning and Consulting
      • Tax Preparation
      • IRS Tax Audit and Notice Support
    • Tax Resolutions
  • Blog
  • About Us
  • Rush & Cancellation Policy
  • Home
  • COVID-19
  • Tax Checklist
  • Pricing
  • Let's Chat
  • Services
    • Business Consultation
    • Tax >
      • Tax Planning and Consulting
      • Tax Preparation
      • IRS Tax Audit and Notice Support
    • Tax Resolutions
  • Blog
  • About Us
  • Rush & Cancellation Policy

FREE Tax Tips and Updates

Browse our blog for helpful tax planning and preparation information.

Improvement Property Update

4/30/2019

0 Comments

 
Picture
​Qualified improvement property is any improvement to the interior portion of a building that is nonresidential real property (think office buildings and shopping centers) if you place the improvement in service after the date you place the building in service.
 
Lawmakers intended qualified improvement property to be 15-year property and eligible for 100 percent bonus depreciation. Not so.
 
Due to a drafting error in the Tax Cuts and Jobs Act (TCJA), qualified improvement property is currently 39-year property and ineligible for bonus depreciation.
 
One possible workaround for some taxpayers: qualified improvement property is Section 179 property, so you can elect to expense it using Section 179. But as you probably know, Section 179 is not available to everyone and has its limitations, which can affect your ability to claim it.
 
Congress has several bills that contain the fix. For example, the Tax Technical and Clerical Corrections Act, introduced in the House of Representatives, would fix the qualified improvement property issue retroactively, along with many other TCJA issues.
 
The best solution is to wait. If you can, hold off filing your tax return until after lawmakers fix the problem retroactively. Then you can claim bonus depreciation on your 2018 qualified improvement property on your extended 2018 tax return. 
 
If Congress retroactively fixes the qualified improvement property issue after you file your 2018 tax return, you’ll have to amend your tax return in order to get the benefits of qualified improvement property being 15-year property.
0 Comments



Leave a Reply.

    We're Here to Help

    Get advice from our experienced network of financial managers. 
    ​

    Categories

    All
    Adjusted Gross Income Compared To Modified Adjusted Gross Income
    Affordable Care Act
    Business Credit
    Calendar Update
    Charitable Donations: Smart Giving
    Due Dates
    End Of The Month Savings Tips!
    Fun Facts
    Important Changes: Listen Up!
    IRA And Wisconsin 529 College Savings Plan
    IRA Roth Conversion
    IRS
    Phishing Scam Warning
    Six Steps For Making Identity Protection Part Of Your Routine
    Tax Reform

    Tax Plan Video

    Important Disclosures


    Spencer Accounting Group, LLC does not provide investment, tax, legal, or retirement advice or recommendations in these blogs. The information presented here is not specific to any individual's personal circumstances.

    ​
    To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.
    ​
    These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable — we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

    GET STARTED

    Author

    Keana Spencer is an Accountant, Entrepreneur, and Educator to her clients, with a strong passion.  Keana has over 10 years of experience and through her practice, she is a source of knowledge and strategies to her clients.

    Keana founded this website and decided and created this blog page to offer a space for those seeking knowledge to understand, however not to be confused with advice or planning strategies.

    RSS Feed

    Accounting Services
    Tax Preparation
    Picture
Contact us to Get Started:

Email:     Telephone:

Company
About Us
Career Opportunities
Document Upload
Privacy Policy

Picture
Picture
Picture
Copyright @2013-2020 ALL RIGHTS RESERVED.
Photo used under Creative Commons from verchmarco