How do I get the special tax treatment on QRP (Qualified Real Property)?
On the 4562 Depreciation Detail screen, choose which QRP is applicable in the middle right section of the screen from the drop list labeled Qualified Nonresidential Property. Applicable choices are:
- A - Qualified leasehold improvement property
- B - Qualified restaurant property
- C - Qualified retail improvement property
- D - Qualified Improvement Property (placed in service after 2017)
If the QRP basis is more than the max allowed ($1,000,000), you will need to select the applicable method (such as SL, M, etc.) instead of EXP and enter the expensed amount in the 179 expense elected this year field. An EF message page generates alerting you to this requirement (1143 in an 1120, 5623 in a 1040, or 1043 in a 1065).
See Tax Topic 704 for more information.