The IRS issued procedures on Friday, April 17, for how taxpayers can take advantage of the recently enacted technical correction to the rules for qualified improvement property (QIP).
Under Rev. Proc. 2020-25, certain taxpayers can elect to take 100% bonus depreciation on the QIP by filing an amended return, an administrative adjustment request (AAR) under Sec. 6227, or a Form 3115 to change their depreciation of QIP placed in service after Dec. 31, 2017, in the taxpayer’s 2018, 2019 or 2020 tax year.
The revenue procedure also allows a taxpayer to make a late election or to revoke or withdraw an election for the 2018, 2019 or 2020 tax year, for property placed in service by the taxpayer during its 2018, 2019 or 2020 tax year, for a limited period. Find more details here.