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Possible TCJA correction to residential rental property

Unlike the qualified improvement property error, correcting this would help owners of residential rental property reduce taxable income when electing out of section 163(j) as an electing real property trade or business. To reduce income today, identify tangible personal property and land improvement basis being inadvertently treated as real property basis. Personal property and land improvements are not required to use ADS and are eligible for bonus depreciation.



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