What kind of property qualifies for bonus depreciation?
Property with an IRS life of 20 years or less includes almost all office and manufacturing equipment including computers and furnishings. It also includes research and experimentation property that is not considered part of a building, geothermal, solar and wind energy properties, vehicles, and land improvements, to mention a few. Qualified lease property is also eligible for bonus depreciation, even though it would otherwise be depreciable over 39 years. Qualified lease property is defined as non-structural improvements to the interior of a non-residential building. The improvements must be made pursuant to a lease, and the building must be more than three years old at the time the improvements are made. Qualified lease property does not include elevators or escalators, and must not be owned by a related party. Self-constructed property, or otherwise qualifying property manufactured, constructed, or produced for the taxpayer’s own use also qualifies if the taxpayer begins the manufact
