100% Bonus Depreciation Is Back — And It’s Here to Stay

💥 100% Bonus Depreciation Is Back — And It’s Here to Stay

On July 4, 2025, a major tax bill was signed into law, officially reinstating and making 100% Bonus Depreciation permanent for qualifying assets placed in service after January 19, 2025.

This is huge news for real estate investors and property owners — potentially unlocking hundreds of thousands of dollars in first-year tax deductions.

✅ What’s New in 2025 and Beyond

• 100% Bonus Depreciation is Permanent
  No more phase-out schedules or expiration dates. This tool is now locked in for the long run.

• Optional Depreciation Rate for 2025 Only
  For this tax year alone, investors can elect to take 40%, 60%, or 100% bonus depreciation based on their tax planning goals.

• Applies to Assets Acquired & Placed in Service After Jan 19, 2025
  Timing matters — full deductions begin with qualifying assets placed into service after this date.

• Energy Incentives Cut
  The bill also eliminates many green energy tax credits, making cost segregation and partial asset dispositions the primary tax strategies for maximizing real estate deductions.

📜 What Stays the Same

• Assets placed in service between Sept 27, 2017 and Dec 31, 2022 still qualify for 100% bonus depreciation.

• 2023 properties: Eligible for 80% bonus depreciation.

• 2024 properties: Eligible for 60% bonus depreciation.

• Jan 1–19, 2025: Only eligible for 40% bonus depreciation.

🏗️ What Types of Properties Qualify — and How Much Can You Deduct?

Here are average deduction ranges based on real-world studies of various property types:

Property Type & Estimated Deduction Range

• Car Washes: Up to 100% (special rules)

• RV Parks: 60% – 90%

• Mobile Home Parks: 40% – 80%

• Gas Stations / Convenience Stores: 40% – 70%

• Restaurants, Dealerships, Truck Yards: 30% – 60%

• Bank Buildings: 30% – 60%

• Retail Plazas: 20% – 35%

• Standalone Retail / NNN Properties: 20% – 30%

• Multifamily, Office, STRs: 20% – 35%

• Long-Term Condo Offices / Residences: 15% – 25%

• Warehouses, Light Industrial: 8% – 20%

Note: Results vary depending on structure, land improvements, and materials used.

🔧 Renovations, Upgrades & Dispositions

• Non-structural improvements made to commercial or short-term rental properties now qualify in full for bonus depreciation if placed into service after acquisition.

• Partial Asset Dispositions allow you to deduct the value of removed or replaced assets during renovations.

🧾 Can You Claim Missed Deductions from Past Years?

Yes. If you placed a property into service years ago but never conducted a cost segregation study, you can still capture those deductions now by filing IRS Form 3115. No amended returns required.

💰 The Bottom Line

This is a significant win for property investors. With green energy credits phasing out and bonus depreciation made permanent:

• You can reduce your taxable income significantly

• Free up capital to reinvest

• Improve overall ROI on new and existing properties

Whether you're closing on a new acquisition or improving a property already in service, it’s the perfect time to run a cost segregation analysis.

📍 Get Your Free Estimate Today

Curious what your property qualifies for?

👉 Request Your Free Cost Segregation Estimate

Need help navigating your specific scenario? Reach out anytime — we're here to help you maximize your investment.

Chase Pfohl
National Account Executive
Direct: 855-620-2774
Email: [email protected]