The CARES Act has provided the real estate industry with a very favorable “fix” to a drafting error created by the (TCJA) tax reform of late 2017.
Qualified improvement property (commonly referred to as “QIP”) are any improvements made to the interior portion of an existing commercial building. Examples include installation or replacement of drywall, ceilings, interior doors, fire protection, mechanical, electrical, and plumbing.
Retroactive to January 1, 2018, the CARES Act changes the depreciable life of qualified improvement property back to 15-year property and once again making it eligible for 100% bonus depreciation write-offs.