Bonus Depreciation Isn’t Always a No-Brainer — Here’s the Catch

[William Thompson]

A lot of real estate investors treat bonus depreciation like automatic free money.

Big deduction. Big refund. Done.

But it’s not always that simple.

Here’s the catch:
- Bonus depreciation can create huge losses today… but it can also create depreciation recapture later.

And depending on your situation, that recapture could hit when:

• your income is higher
• your tax bracket is higher
• or you’re selling at a time you didn’t plan for

Smart investors don’t just ask, “How much can I deduct?”
They ask, “When should I take the deduction?”

Sometimes bonus depreciation is perfect.
Other times, spreading deductions out can be the better long-term move.

It’s not about being aggressive — it’s about being strategic.

Curious — have you taken bonus depreciation before and been happy with the results, or did it create surprises later?

If you want to talk through timing and strategy for your situation, DM me “BONUS” and I’ll help you think through the pros/cons before you pull the trigger.