Bonus depreciation

The rule that makes year one interesting.

Bonus depreciation lets you write off most of the short-life property a cost segregation study identifies in the year it's placed in service. Here are the rates.

Bonus % by placed-in-service year

Placed in service	Bonus depreciation
2018 – 2022	100%
2023	80%
2024	60%
2025 and later	100%

2025: 100% bonus applies to property acquired after January 19, 2025. Property acquired earlier but placed in service in 2025 may qualify for 40%. Your CPA will confirm.

Recapture, explained simply

When you sell a property, the tax code "recaptures" some depreciation you claimed. Depreciation taken on real property is generally taxed as unrecaptured Section 1250 gain, capped at 25% — which can be lower than your ordinary income rate.

Bonus depreciation on certain personal property can be recaptured at ordinary rates. That sounds scary, but for most owners the math still favors front-loading deductions: you get the full write-off years earlier, and the deferral itself has real value.

Your CPA handles the recapture calculation when you sell. Our report gives them the clean classification detail they need.

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