What is qualified improvement property (QIP)?

Improvements to the interior of a non-residential building after the building was placed in service. Excludes: enlargement of building, elevators/escalators, structural components. QIP has a 15-year MACRS life since the CARES Act 2020 technical correction.

Can QIP use bonus depreciation?

Yes. QIP is 15-year property and qualifies for bonus depreciation. In 2024, that means 60% first-year deduction plus MACRS on the remaining 40% basis. This makes interior tenant improvements immediately tax-deductible.

Who claims leasehold depreciation — landlord or tenant?

Whoever paid for the improvements capitalizes and depreciates them. Tenant Improvement Allowances (TIA) paid by the landlord are depreciated by the landlord. Improvements built by the tenant are depreciated by the tenant.

Leasehold Improvement Depreciation Calculator

Calculate depreciation for qualified leasehold improvement property (QLIP) and qualified improvement property (QIP). QIP has a 15-year MACRS life and qualifies for 60% bonus depreciation in 2024.

Principal ($)

Annual Rate (%)

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$ Finance Disclaimer: These calculators are for educational and illustrative purposes only. Results do not constitute financial advice. Consult a licensed financial advisor before making investment or borrowing decisions.

How to Use

Enter the values for the scenario you are assessing. Calculate depreciation for qualified leasehold improvement property (QLIP) and qualified improvement property (QIP). QIP has a 15-year MACRS life and qualifies for 60% bonus depreciation in 2024. Use the leasehold depreciation result to inform your calculation.

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Leasehold Improvement Depreciation Calculator

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Frequently Asked Questions

What is qualified improvement property (QIP)?

Can QIP use bonus depreciation?

Who claims leasehold depreciation — landlord or tenant?