Companies can use cost segregation studies of their construction and purchased facility projects to generate large tax deductions and free up cash by identifying property eligible for 100% bonus depreciation. One type of eligible property is Qualified Improvement Property (“QIP”), which are interior non-structural facility renovations. The CARES Act corrected a major 2017 tax law error that had barred QIP from full expensing in 2018, 2019 and 2020. A cost segregation analysis will uncover any hidden QIP to correct with an automatic method change in 2019 or 2020. Contact us at the Cost Seg Boutique to learn more.
