Last week, the Internal Revenue Service and the Treasury Department issued proposed regulations addressing bonus deprecation rules for certain property acquired and placed in service after September 27, 2017. In general, as a result of the enactment of comprehensive tax reform legislation in December 2017, the Internal Revenue Code of 1986, as amended, now permits a depreciation allowance of 100% of the adjusted basis of certain types of property in the year that such property is placed in service, if the property is acquired and placed in service after September 27, 2017 and before January 1, 2023 and certain other requirements are met. In a significant change, the Code now provides that a taxpayer generally need not be the first user of property to be eligible for Bonus Depreciation; however, the taxpayer cannot be treated as having used the property previously. The Proposed Regulations include detailed rules regarding the acquisition requirements applicable to used property but do not address a key legislative omission relevant to improvements to real property.