Establishing Land Value in a Real Estate Purchase
When purchasing real estate, the acquisition price often represents a single lumpsum amount that includes both the land and any improvements, such as buildings, parking lots, or other structures. Before depreciation can be calculated, the purchase price must be allocated between the non-depreciable land and the depreciable improvements.
Qualified Production Property Interim Guidance Released
The IRS has released IRS Notice 2026-16, providing interim guidance on the new Qualified Production Property (QPP) asset class enacted under the One Big Beautiful Bill Act. This guidance clarifies eligibility, elections, and recapture mechanics for the new 100% special depreciation allowance available to qualifying production facilities.