Eversheds Sutherland Legal Insights (audio)

Due to a scrivener’s error in the Tax Cuts and Jobs Act (TCJA), Qualified Improvement Property ("QIP") was not designated as property with a useful life of 20 years or less, thus failing to qualify for the 100% bonus depreciation allowed in the TCJA.  The CARES Act corrected this error retroactive to the TCJA enactment.  Now that it’s been corrected, taxpayers must consider how to capture lost bonus depreciation.Last week, the IRS released Rev. Proc. 2020-25, which sets forth the procedures for taxpayers seeking to implement the CARES Act’s Technical Correction for QIP.  The revenue procedure allows a range of alternatives addressing elections, amended returns, and accounting method changes.  Eversheds Sutherland attorneys, Ellen McElroy and Mike Resnick will discuss these new rules with the author of the revenue procedure, Kathleen Reed, Branch Chief, Office of Chief Counsel (IRS), Income Tax & Accounting.