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“Qualified real property” expensing under section 179, alternative depreciation under section 168

“Qualified real property” expensing under section 179

The IRS today released an advance version of Rev. Proc. 2019-08 as guidance concerning expense deductions and depreciation measures related to real property—measures that were enacted by the new U.S. tax law (Pub. L. No. 115-97) that is also referred to as the “Tax Cuts and Jobs Act” (TCJA).

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The new tax law amended:

  • Section 179 by modifying the definition of “qualified real property” that may be eligible as section 179 property under section 179(d)(1)
  • Section 168 by (1) requiring certain property held by an electing real property trade or business (defined by section 163(j)(7)(B)) to be depreciated under the alternative depreciation system in section 168(g)) and (2) reducing the recovery period under the alternative depreciation system from 40 to 30 years for residential rental property
  • Section 168 by requiring certain property held by an electing farming business (defined by section 163(j)(7)(C)), to be depreciated under the alternative depreciation system


Rev. Proc. 2019-08 [PDF 70 KB] provides guidance concerning these tax law changes. 

For the full text, read TaxNewsFlash

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