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The Protecting Americans from Tax Hikes Act (PATH) passed by Congress and signed on December 18, 2015, made several changes that will impact landlords and tenants of commercial property. One significant change is it expanded the definition of “qualified property” eligible for bonus depreciation by adding a new category for “qualified improvement property”. The term qualified improvement property means any improvement to an interior portion of a building which is nonresidential real property if such improvement is placed in service after the date such building was first placed in service, excluding 1) enlargements, 2) elevators and escalators, and 3) internal structural framework. The improvements do not need to be made pursuant to a lease. Qualified improvement property is still considered improvements to commercial real property thus the depreciable life is 39 years, but in the year placed in service these improvements are now eligible for bonus depreciation.  

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The Cultural Alliance of Greater Washington has worked with Bormel, Grice & Huyett, P.A., since 1988. Their knowledge of the arts and the arts community make their services invaluable. They can translate accounting terminology into a comprehensive language. For many organizations, the accounting firm of Bormel, Grice & Huyett provides the financial "information bridge." We whole-heartedly recommend Bormel, Grice & Huyett, excellent accountants who care about our arts organizations.
Jennifer Cover Payne, Executive Director, Cultural Alliance of Greater Washington

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