STRATEGIC ALTERNATIVES TO QIP

Learning Objectives

• Understand the history of Qualified Property Categories.
• Explain the implications of the current status of QIP under the Tax Cuts and Jobs Act (TCJA).
• Become familiar with legislative efforts in place to encourage correction of QIP status.
• Understand the value of QIP as an indicator of Section 179-eligible property.
• Explain how strategies like Section 179 Expensing, Bonus depreciation, and the Tangible Property Regulations (TPRs) may be used even without Bonus-eligible QIP.

Course Description

Qualified Improvement Property (QIP) has undergone a number of changes over the years. In this session, we will examine the historical treatment of Qualified Property Categories and focus on the current status of QIP under tax reform. We will discuss the “QIP controversy” and the associated challenges that taxpayers face as a result. We will also consider several other strategies that might be used in place of QIP, and explore a strategic hierarchy for employing those strategies most successfully. An overview of the 9/13/19 updates to the TCJA written binding contract (WBC) and bonus rules will also be reviewed.

Overview

• History of Qualified Property Categories

  5 mins
• QIP: Where Do We Stand Today?

  12 mins
• The Interplay of Bonus Depreciation, Section 179 Expensing, and TPRs

  16 mins
• Section 179 Expensing

  18 mins
• Bonus Depreciation for Acquisitions and Construction

  31 mins
• The Tangible Property Regulations

  50 mins
• Strategic Hierarchy

  55 mins