Many Property Owners May Be Missing Out on Bonus Depreciation
With the federal tax filing deadline approaching, tax professionals are warning that many real estate investors may be overlooking one of the most powerful deductions available: bonus depreciation.
Bonus depreciation allows real estate investors and businesses to immediately deduct a large portion of qualifying asset costs rather than depreciating them over decades. When paired with a cost segregation study, this strategy can accelerate deductions for components such as flooring, appliances, electrical systems, and landscaping that would otherwise be written off over 27.5 or 39 years.
However, many investors file their returns without realizing these opportunities exist.
For real estate investors, the key is identifying assets within a building that qualify for shorter depreciation lives… typically 5, 7, or 15 years. A cost segregation study performs this analysis and can unlock substantial first-year deductions.
Even if a property has been owned for several years, investors may still be able to capture missed depreciation through a change in accounting method using IRS Form 3115.
Tax professionals note that with the filing deadline approaching, investors should review:
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Rental properties purchased in recent years
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Properties that underwent renovations or tenant improvements
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Short-term rental properties or vacation rentals
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Commercial buildings that have never had a cost segregation study
Educational resources like 100BonusDepreciation.com provide guidance on how bonus depreciation works, how cost segregation studies accelerate deductions, and how investors can determine whether their properties qualify.
For many property owners, reviewing depreciation strategies before filing could mean the difference between claiming standard deductions and unlocking significantly larger tax benefits.
Investors looking to learn more about bonus depreciation and cost segregation strategies can visit www.100BonusDepreciation.com for additional educational resources.
Disclaimer: This press release may contain forward-looking statements. Forward-looking statements describe future expectations, plans, results, or strategies (including product offerings, regulatory plans and business plans) and may change without notice. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements.
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Website: https://www.100bonusdepreciation.com/
