Qualified restaurant improvements

The new law eliminates depreciation categories for qualified leasehold improvements (QLI), qualified restaurant property (QRP), and qualified . Tangible property depreciated under modified accelerated cost recovery system (MACRS) that has a recovery period of years or less, such as restaurant equipment, restaurant furniture and land improvements. The property can be new or used (this is new, under previous law used property did not qualify for bonus). Policymakers should act to ensure that qualified improvement. Normally, these upgrade costs must be deducted over a number of years in accordance with depreciation schedules.

Prior to the TCJA, there were various categories of interior building improvements , such as qualified leasehold improvement property, qualified restaurant property and qualified retail improvement property. Which assets are eligible for 1 bonus depreciation and which are not? Congress provided incentive to restaurants to improve their properties with the new or amended provisions regarding how restaurant property . Before the Act, the federal tax code established separate definitions and rules for qualified leasehold improvements , qualified restaurant. For property placed in service in tax years beginning after 201 qualified section 1real property is qualified improvement. Qualified section 1real property.

However, improvements do not qualify if they are attributable to:. In addition to QIP, there was also qualified leasehold improvement property, qualified retail improvement property and qualified restaurant. Historically speaking, certain types of qualified real property, including qualified leasehold improvements , qualified restaurant property and . The provision for qualified restaurant property, however, is much broader in that it is not limited to leasehold improvements or by other restrictions that apply to . Land improvements not specifically included in any other asset class and otherwise.

For example, not all types of qualified restaurant property were eligible.