🇺🇸 Made in America·100% U.S.-Based Team · 24+ Years in Cost Segregation
Home/The Strategy Room/Bonus Depreciation
100% Bonus Depreciation Is Back

Congress Put Millions Back on the Table.
The Clock is Ticking.

As of January 20, 2025, 100% bonus depreciation is back. Every qualifying component identified in a cost segregation study can be deducted in full in the year placed in service. Not over five years. Not over fifteen. Now.

100% Bonus Depreciation
Jan 20, 2025 Effective Date
Year 1 Full Deduction
5-yr & 15-yr Property Qualifies
$0 Phased Down — Fully Back
The Timeline — Read This First

This Is the Best Bonus Depreciation Environment in a Generation.

Bonus depreciation was introduced at 100% in 2017, then phased down year by year — 80%, 60%, 40%, 20%. The One Big Beautiful Bill Act (OBBBA) renewed it to 100% effective January 20, 2025. The investors who act while the rate is 100% capture the full benefit permanently. The deduction you take this year is yours — regardless of what the rate becomes later.

2017

100% — Introduced

TCJA established 100% bonus depreciation for qualifying property placed in service between Sept. 27, 2017 - December 22, 2022.

2023

80% → 60% → 40% → 20%

Phased down year by year under the TCJA sunset schedule. Investors who waited lost the full benefit permanently.

2025

100% — Fully Restored

Effective January 20, 2025: 100% bonus depreciation reinstated. Every qualifying 5-year and 15-year component fully deductible in year one.

What 100% Bonus Depreciation Means for You

The Same Building. Three Completely Different Tax Outcomes.

On a $2,000,000 commercial building where a cost segregation study identifies $400,000 in 5-year and 15-year property, here is what the difference looks like for an investor in the 37% bracket.

No Cost Segregation

Year-1 deduction: $51,282 — Tax savings: $18,974

📊
Cost Seg, No Bonus

Year-1 deduction: $80,000 — Tax savings: $29,600

Cost Seg + 100% Bonus

Year-1 deduction: $400,000 — Tax savings: $148,000

Why Cost Segregation Is Required

Bonus Depreciation Does Nothing Without Reclassification First.

Your building is classified as 39-year property by default. Bonus depreciation only applies to property with a recovery period of 20 years or less. Without a cost segregation study to reclassify components, you have nothing to apply bonus depreciation to. The study creates the opportunity. The bonus rate maximizes it.

1

Cost Segregation Study

Our analysts identify and document every 5-year and 15-year component in your building using IRS Approaches 1 and 2.

2

Reclassification Documented

Every qualifying component moves from 39-year to 5-year or 15-year with individual cost basis and source citation.

3

100% Bonus Applied

Your CPA applies the 100% bonus depreciation election. The entire reclassified amount is deducted in year one.

4

Unlimited Audit Defense

Every study includes unlimited audit defense — no caps, no time limits, no additional charge. 125+ audits. Zero losses.

100% Bonus Depreciation — Active Now

The Best Depreciation Window in a Generation. Your Building. This Year.

Free analysis. 24-hour response. All 50 states. Properties at $250,000 and above. If we cannot find more in deductions than our fee — you owe us nothing.

$148,000
Year-1 savings on a $2M building with cost seg + 100% bonus at 37% bracket
Claim Your No Cost Proposal →Call 1-888-365-5023