The COVID-19 pandemic has been the catalyst that could completely change people’s work/life balance and the way we use, or even if we use, our office spaces.
Tax Breaks Offer Relief for Commercial Real Estate Owners Needing to Repurpose or Reconfigure Existing Space to Accommodate Social Distancing
The current crisis is forcing many rapid changes to be made in the use of commercial real estate space – at considerable expense. Now, there is at least some good news for those struggling with the cost of making major interior changes to their commercial space, thanks to generous tax incentives for qualified improvement property (QIP) under the umbrella of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. These tax breaks can help alleviate the financial costs of redesigning and repurposing commercial space. The key to benefiting from these incentives is the interpretation of QIP, which now includes any non-structural improvement to the interior of an existing building, necessitated by the need for social distancing.