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ITG FAQ #9 Answer-What is "qualified zone property?

For the increased section 179 deduction, qualified zone property is any depreciable tangible property if all of the following are true:

  • You acquired the property after the zone designation is in effect;
  • You did not acquire the property from a related person or member of a controlled group of which you are a member;
  • Your basis in the property is not determined either by its adjusted basis in the hands of the person from whom you acquired it or under the stepped-up basis rules of property acquired from a decedent;
  • You were the first person to use the property in an empowerment zone; and
  • At least 85% of the property's use is in an empowerment zone and in the active conduct of a qualified trade or business in the zone.

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Page Last Reviewed or Updated: 17-Oct-2014