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Rev. Proc. 2020-25: Depreciation of qualified improvement property

Depreciation of qualified improvement property

The IRS today released an advance version of Rev. Proc. 2020-25 as guidance allowing taxpayers to change the depreciation of “qualified improvement property” placed in service by the taxpayer in a tax year ending in 2018, 2019 or 2020.


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Rev. Proc. 2020-25 also allows a taxpayer to make a late election—or to revoke or withdraw an election—for the 2018, 2019 or 2020 tax year.

The revenue procedure reflects changes to the depreciation of “qualified improvement property” as made by the “Coronavirus Aid, Relief, and Economic Security Act” (CARES Act) (Pub. L. No. 116-136).

Read Rev. Proc. 2020-25 [PDF 125 KB] (28 pages)

Read an April 2020 report [PDF 274 KB]  prepared by KPMG LLP about the relief provided by Rev. Proc. 2020-25

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