OBBBA bonus depreciation is one of the most powerful tax breaks business owners overlook. Do you own or lease a commercial property for your business?
Whether it’s an office, warehouse, retail space, or clinic — this might be the most overlooked deduction in your entire tax strategy.
A cost segregation study breaks down a property into its components. Instead of depreciating the entire building over 39 years, it identifies pieces with shorter tax lives, like:
Industry data shows that 20–30% of a building’s depreciable basis (excluding land) often qualifies for shorter lives. That’s where the “30%” number comes from.
On its own, cost segregation just accelerates depreciation. But thanks to OBBBA restoring 100% bonus depreciation, those reclassified assets can now be written off immediately in Year 1.
That means instead of spreading 30% of your building’s value over 5, 7, or 15 years, you may deduct it all in the first year the property is placed in service.
Under current law, bonus depreciation elections are made by asset class for the year. See the IRS FAQ on bonus depreciation for details.
That’s a massive upfront deduction… without changing anything about how you operate. For many owners, the timing difference means freeing up hundreds of thousands in cash flow.
🛠️ Cost segregation firms are about to be slammed. If you plan to buy, renovate, or improve a property soon, get on their radar early.
OBBBA bonus depreciation makes cost segregation more powerful than ever—but only if you line it up with your business goals. Don’t wait until the year is over to run the numbers. Schedule your call here and let’s build a plan that maximizes your deductions when they matter most.
It’s an IRS-recognized engineering and tax study that reclassifies parts of a building into shorter lives. This accelerates depreciation and, with OBBBA’s 100% bonus, often allows immediate first-year deductions. IRS Cost Segregation ATG
Industry data shows ~20–40% is typical. Using 20–30% as a planning range is conservative and applies to many property types. Actual percentages vary by construction and improvements.
Yes. OBBBA reinstates full 100% bonus depreciation for qualified property placed in service after January 19, 2025. That’s why cost segregation is so powerful now — the identified components can be deducted right away.
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