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On The Market cover image

187: 100% Bonus Depreciation Coming Back? (Do NOT File…Yet) w/Brandon Hall

On The Market

NOTE

Understanding Bonus Depreciation and Its Impact on Property

Bonus depreciation allows for immediate write-off of certain components of a property over five, seven, and 15 years, instead of the typical 27 and a half years. Personal property components like appliances, furniture, fixtures, and carpeting fall under the five or seven year category, while land improvements such as parking pads and signage fall under the 15-year category. Following a cost segregation study, a portion of the building value, typically $100,000 in this case, can be deducted in the first year, providing significant tax benefits to property owners.

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