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15-Year MACRS

Qualified Improvement Property (QIP) Depreciation Calculator

IRS MACRS depreciation calculator for Qualified Improvement Property — interior improvements to nonresidential buildings. 15-year recovery period with bonus depreciation.

Year 1 Deduction
$5,000
Recovery Period
15 years
Total Depreciation
$100,000
Method
DB/SL
YearRateDeductionCumulative
15.00%$5,000$5,000
29.50%$9,500$14,500
38.55%$8,550$23,050
47.70%$7,700$30,750
56.93%$6,930$37,680
66.23%$6,230$43,910
75.90%$5,900$49,810
85.90%$5,900$55,710
95.91%$5,910$61,620
105.90%$5,900$67,520
115.91%$5,910$73,430
125.90%$5,900$79,330
135.91%$5,910$85,240
145.90%$5,900$91,140
155.91%$5,910$97,050
162.95%$2,950$100,000
IRS Classification
IRS Asset Class: GDS 15-year (QIP — IRC §168(e)(6))
Section 179: EligibleBonus Depreciation: Eligible
Key Tax Facts
QIP covers improvements to interior of nonresidential buildings after initial placed-in-service date
CARES Act (2020) corrected the TCJA error — QIP is now 15-year property eligible for bonus depreciation
Does not include enlargements, elevators, or escalators
Roofs, HVAC, fire protection, and security systems in nonresidential buildings also qualify under Section 179
Both owned and leased building improvements qualify
What This Covers
Interior renovations to leased commercial space
Restaurant interior improvements
Retail store improvements
Office interior buildouts
HVAC replacements in existing buildings
Roofing replacements
Common Questions
QIP covers any improvement to an interior portion of a nonresidential (commercial) building that is placed in service after the building was first placed in service. This includes tenant improvements, restaurant renovations, office buildouts, and similar interior work. QIP is 15-year MACRS property eligible for 100% bonus depreciation.
Yes. The CARES Act (2020) corrected a drafting error in the Tax Cuts and Jobs Act and made QIP eligible for bonus depreciation. Tenant improvements and leasehold buildouts in commercial space are now eligible for 100% first-year deduction through bonus depreciation.
Roofs are not QIP (QIP only covers interior improvements). However, roof replacements on nonresidential buildings qualify for Section 179 expensing under the special rule for roofing, HVAC, fire protection, and security systems in the TCJA.
QIP excludes: enlargements of the building, elevators and escalators, and internal structural framework. Improvements to the exterior of a building also do not qualify.
Related Calculators
7-Year MACRS
Commercial HVAC Systems
5-Year MACRS
Restaurant Equipment
7-Year MACRS
Office Furniture and Fixtures
Tax disclaimer: This calculator provides estimates based on standard IRS MACRS rules from Publication 946. Your actual depreciation deduction may differ based on business-use percentage, the mid-quarter convention, state tax conformity, bonus depreciation phase-outs, and other factors specific to your situation. Always consult a licensed CPA or tax professional before making tax decisions.