Depreciation Rules for Bonus and Section 179 Expensing (Z1-DRBE-2021-01-SSWC)

The Tax Cuts and Jobs Act of 2017 has had a tremendous impact on commercial real estate, including liberalizing the depreciation provisions. The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) included several provisions that allow taxpayers to revisit projects completed in earlier, more profitable years, and generate even more value. In addition to exploring the impact of these important laws, we’ll also examine opportunities to “turn back the clock,” including the retroactive correction of QIP’s recovery period and the option to revoke electing-out of the business interest limitation. Finally, we will review other strategies that are crucial parts of a comprehensive tax plan in 2021 and will discuss a strategic hierarchy for employing those strategies most successfully. Relevant Rev. Procs. and multiple real-life case studies will be reviewed.

Topics include:

• Bonus depreciation for acquisitions and construction
• History of qualified property categories and QIP
• The CARES Act and related Rev. Procs. 
• Section 179 expensing
• Energy incentives 
• The tangible property regulations
• 1031 exchanges
• Strategic hierarchy