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Reviewing Assets for Tax Compliance

Qualified Improvement Property

The redefinition of Qualified Improvement Property (QIP) as of 1/1/2018 sunsets the following three types of qualified real property as of 12/31/17:

  • Qualified Leasehold Improvement property
  • Qualified Restaurant property
  • Qualified Retail Improvement property

Qualified improvement property is an improvement to an interior portion of a building that is nonresidential real property provided the improvement is placed in service after the date that the building is placed in service. However, improvements related to the enlargement of the building, an elevator or escalator, or the internal structural framework of the building are not qualified improvement property (Code Sec. 168(e), as amended by the 2017 Tax Cuts and Jobs Act (TCJA).)

Qualified Improvement Property is eligible for Section 168 bonus expensing if PIS in 2018 and later. The CARES Act of 2020 assigns QIP a 15-year GDS life and a 20-year ADS life.

Qualified Improvement Property is eligible for Section 179. See Qualified Real Property for details on Section 179 Rules.