Bonus Depreciation

100% Bonus Depreciation Is Back. Permanently.

OBBBA restored full first-year expensing for property acquired after January 19, 2025. If you own commercial real estate, this changes everything.

Was dropping to 20% in 2026. Now permanent at 100%.

The Impact

What 100% Bonus Depreciation Means for You

Yr 1

Year 1 Write-Off

Instead of depreciating a $1M property over 39 years ($25K/year), cost segregation + bonus depreciation lets you deduct $220K–$420K in Year 1.

$155K

Cash Flow Now

At 37% bracket, that's $81K–$155K back in your pocket in Year 1 instead of over 4 decades.

Jan 19

Retroactive

Applies to property acquired after January 19, 2025. If you bought this year, you qualify.

Who Qualifies

Does This Apply to You?

The Combination

How Cost Seg + Bonus Depreciation Work Together

1

Cost segregation identifies which components of your property qualify for accelerated depreciation

2

Bonus depreciation lets you write off 100% of those components in Year 1

3

Together, they turn a 39-year depreciation schedule into a Year 1 event

Real Example
$2M
Multifamily
→
$480K
Reclassified (24%)
→
100%
Bonus Depreciation
→
$480K
Year 1 Deduction
$177K
Tax savings at 37% bracket
Tax Review

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Common Questions

Frequently Asked Questions

It means you can deduct the full cost of qualifying property components in the year they're placed in service, rather than spreading the deduction over 5, 7, 15, or 39 years. For commercial real estate owners, this translates to significant first-year tax savings when paired with a cost segregation study.

Properties acquired after January 19, 2025 qualify for 100% bonus depreciation on components identified through cost segregation. This includes commercial buildings, multifamily properties, restaurants, medical offices, and more. A free analysis will confirm your eligibility.

Cost segregation identifies which building components (flooring, lighting, HVAC, landscaping, etc.) can be reclassified from 39-year property to 5, 7, or 15-year property. Bonus depreciation then allows you to deduct 100% of those reclassified components immediately in Year 1.

Yes. For properties placed in service before 2025, you may still benefit from partial bonus depreciation or a catch-up deduction via a cost segregation study filed with a change-in-accounting-method form. Your specific situation determines which approach generates the most savings.

The initial free analysis takes about 15 minutes. If you move forward, a typical cost segregation study is completed in 4 to 8 weeks. The deduction is then claimed on your current tax return, generating savings immediately.

See How Much You Could Deduct

Free cost segregation analysis. Find out how much you could deduct in Year 1 under the restored 100% bonus depreciation.

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✓ $74.2M Client Savings ✓ 600+ Business Owners ✓ Personalized Savings Analysis

Savings estimates are illustrative and based on common cost segregation benchmarks. Actual results depend on property type, basis, and individual tax situation. Consult a qualified tax advisor before making decisions. Crane Financial is not a law firm and does not provide legal advice.

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