IRS Releases Guidance on Qualified Improvement Property

New guidance is now out pertaining to Qualified Improvement Property (QIP). We wanted to be sure to share a quick update with you.

The new rules found in Rev. Proc. 2020-25 regarding QIP now allow taxpayers to file Form 3115 (Application for Change in Accounting Method) or file amended returns to generate additional deductions.  Amended tax returns will need to reflect the retroactive, technical amendment provisions set forth by the CARES Act that now allow for 100% bonus appreciation for QIP.

Taxpayers may file an amended return, administrative adjustment request, or a Form 3115 for the tax years of 2018, 2019 or 2020 if they alter the depreciation of the QIP placed in service after December 31, 2017.

If you would like more information about this new guidance and how it might be of benefit to you, please reach out to your contact at our firm. We will begin to look at this from every angle on your behalf.