Article Date:
May 2020

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CARES Act Fixes TCJA Glitch on QIP, Requires Action

It has taken three years for Congress to finally fix the qualified improvement property (QIP) error in the Tax Cuts and Jobs Act (TCJA).


On the not-so-bright side, since Congress took so long to do its job, the rules you have to follow to fix your QIP correctly are complex.


And if you have such property on an already filed 2018 or 2019 return, it’s on that return as 39-year property. You now have to change it to 15-year property, eligible for both bonus depreciation and Section 179 expensing.


That’s the bright side: better choices. You can find tax refunds from the prior returns or reduce future taxes, and you likely have no choice but to do it.


We’ll make this entire process crystal-clear for you in this article, and we’ll explain some related changes you might have to make and how you do that. ... Log in to view full article.

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