New Rules in Bonus Depreciation: Does Your Business Qualify?

Have you made building improvements recently or are you planning any in the near term? Then you may qualify to take advantage of new rules for “qualified improvement property.” This category is broader than the former “qualified leasehold improvement property” category. Businesses may now be eligible to use bonus depreciation for improvements to the interiors of nonresidential real property made after the building was placed in service. There are limitations, but we can help you determine which property or improvements will or won’t qualify. 

Businesses with qualifying improvements can receive a 50% depreciation deduction of the adjusted basis of qualifying property in the first year it’s placed in service in 2015, 2016 or 2017, followed by lower percentages for 2018 and 2019. If you’ve made building improvements that might be eligible, be sure to contact our office today for more details.