Ways and Means Committee Chairman Brady released a year-end tax bill on November 26 that would extend temporary tax provisions that expired last year or are set to lapse at the end of this year, and make some technical corrections to some provisions in the tax legislation that was signed into law in late 2017.
A frequently discussed error that this bill might correct was the accidental exclusion of “qualified leasehold improvement property, qualified restaurant property, and qualified retail improvement property” from 100 percent expensing. The 2017 tax act, as it currently reads, calls for these categories of real property to be depreciated over 39 years, instead of the apparent intent of Congress to make these categories 15 year property, and eligible for the expensing elections.
We’re now nearly to the end of 2018, when Republicans will lose control of the House. We’ll be keeping an eye on this legislation.