Don't Miss Out on Bonus Depreciation!

[Julio Gonzalez]

One of the many benefits of being a real estate property owner is the many tax strategies and laws that help keep a substantial amount of money in your pocket. One of those advantageous tax laws is bonus depreciation, also referred to as accelerated depreciation or first year depreciation.

Bonus depreciation allows you to accelerate your depreciation by increasing the amount of depreciation that can be written off in the year that the asset is placed into service. Eligible property includes 1) Computer software that is depreciable 2) Qualified leasehold improvements property 3) Water utility property and 4) MACRs property that depreciates over 20 years or less. Paired with a cost segregation study, this can be extremely advantageous to real estate investors.

Here is the bonus depreciation percentage schedule including the phase out. Take advantage of 100% depreciation while you can!

Bonus Depreciation %	Property Placed in Service Date
100%	September 27, 2017 - December 31, 2022
80%	January 1, 2023 - December 31, 2023
60%	January 1, 2024 - December 31, 2024
40%	January 1, 2025 - December 31, 2025
20%	January 1, 2026 - December 31, 2026

How have you utilized bonus depreciation with your real estate properties?

[Ashish Acharya]

Originally posted by @Julio Gonzalez:

One of the many benefits of being a real estate property owner is the many tax strategies and laws that help keep a substantial amount of money in your pocket. One of those advantageous tax laws is bonus depreciation, also referred to as accelerated depreciation or first year depreciation.

Bonus depreciation allows you to accelerate your depreciation by increasing the amount of depreciation that can be written off in the year that the asset is placed into service. Eligible property includes 1) Computer software that is depreciable 2) Qualified leasehold improvements property 3) Water utility property and 4) MACRs property that depreciates over 20 years or less. Paired with a cost segregation study, this can be extremely advantageous to real estate investors.

Here is the bonus depreciation percentage schedule including the phase out. Take advantage of 100% depreciation while you can!

Bonus Depreciation %	Property Placed in Service Date
100%	September 27, 2017 - December 31, 2022
80%	January 1, 2023 - December 31, 2023
60%	January 1, 2024 - December 31, 2024
40%	January 1, 2025 - December 31, 2025
20%	January 1, 2026 - December 31, 2026

How have you utilized bonus depreciation with your real estate properties?

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