PATH Act Effects Code Section 179
The PATH Act increased the expensing break for qualifying real estate improvements. It also made it easier for improvements to qualify for bonus first-year depreciation, but the determinations of qualifying improvements and expenses are more complex. The detail of these new complications is lengthy, but, as summarized by Thomas Reuters in their Checkpoint New dated March 8, 2016, as a general rule, the cost of commercial real estate improvements is recovered over a period of 39 years via straight line depreciation only.
“However, for specially defined categories of r...