What is a Qualified improvement property?

Qualified improvement property (QIP) is any improvement made to the interior portion of a nonresidential building after the building is placed in service, excluding enlargements, elevators, escalators, and structural framework changes. The CARES Act assigned QIP a 15-year recovery period under MACRS, making it eligible for Depreciation and amortization bonus depreciation deductions. Businesses renovating offices, retail locations, or commercial spaces can use QIP to accelerate deductions and improve cash flow in the year improvements are placed in service.

Related Terms

What is Bonus depreciation?

What is Section 179 expensing?

What is MACRS depreciation?

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