Bonus depreciation in 2025

[Melanie Baldridge]

In 2025 the bonus depreciation rate is 40%.

This means that if you bought a property for $1M in 2025, did a cost seg study and found $300K in eligible assets that you could depreciate, you could take 40% of that $300K as bonus depreciation to offset your income in the first year.

40% of $300K = $120K.

You then apply that $120K to the owner’s personal tax rate to find the final amount that they can defer in year 1.

If your tax rate is 37%, you can defer $66.6K.

This is a big deal even at the 40% bonus depreciation rate this year.