Understanding Bonus Depreciation

Revisions to the tax code allow you to expense a far more significant amount of “Bonus Depreciation”. Learn about the impact, and more importantly, how you get it in an IRS-compliant fashion.

Components of a free estimate from SEGTEX

Bonus vs. Straight-Line Depreciation

Basis of Improvements

Your Acquisition Price, separated by land & improvements

Tax Basis of Improvements

This is the value of asset that you would typically straight-line depreciate.

Estimated NOI

Regardless of depreciation method, what income does property generate?

Estimate with Cost Seg.

MACRS assets all depreciated 100%, remaining assets on 27.5 or 39 year schedule.

Tax Records

Your property is already separated by land & improvements.

New Build or Existing?

Determines whether engineers use actual costs or estimated replacement costs.

Estimate w/o Cost Seg.

Straight line depreciation of improvements, divided by 27.5 or 39 years.

Tax Free Cash Flows

After cost seg, and claiming $669,590 in depreciation, it would take 19 months for this property’s income to exceed its Bonus Depreciation.

24 Hours

For Us to Generate an estimated benefit of a Cost Segregation Study

100%

Bonus Depreciation on MACRS is now law under OBBBA

1 Month

From the date of your Onsite Verification until you receive your draft report.