The Best Ever CRE Show JF 4122: Bonus Depreciation, Tax Deferral and Cost Seg Timing ft. Chris Streit
Dec 17, 2025
In a lively discussion, Chris Streit, CEO of CSA Partners and expert in cost segregation, sheds light on the importance of tax deferral strategies as we approach 2025. He emphasizes that the return of 100% bonus depreciation doesn’t lessen the urgency for cost seg. Chris explains the look-back/catch-up depreciation technique, allowing retroactive savings without amendments. He also dives into the complexities of 1245 recapture and how a 1245 exchange can minimize tax burdens, while highlighting the risks of doing accelerated depreciation incorrectly.
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Cost Seg Is A Time-Value Play
- Cost segregation is primarily a tax deferral strategy, not a permanent tax savings tool.
- Accelerated depreciation gives cash today but creates 1245 recapture owed on sale, so time value matters.
Run A Catch-Up Study When You Skipped One
- Do a look-back (catch-up) cost segregation if you skipped it in earlier years; you don't need to amend prior returns.
- Use the IRS 481(a) method change procedures so your CPA can claim the missed accelerated depreciation now.
Plug Specialists Into Your CPA Workflow
- Coordinate cost segregation work through your CPA but use specialized cost-seg firms for technical expertise.
- Ask the CPA to white-label or bring the specialist on calls so outputs fit the CPA's client workflow.