Bonus Depreciation
First-year additional depreciation on qualifying assets — phasing down annually.
Bonus depreciation lets you deduct a large percentage of qualifying asset costs in the first year instead of spreading over the useful life. Under the Tax Cuts and Jobs Act, the rate was 100% through 2022, now phasing down: 80% (2023), 60% (2024), 40% (2025), 20% (2026), 0% (2027). It applies to assets with useful life of 20 years or less — perfect for cost segregation components.
Current bonus depreciation rates are in the Tax Center → Tax Rates reference. Kaison shows the current year's rate so you can factor it into your deal analysis.
Depreciation
A tax deduction for the gradual wear of your rental property — 27.5 years for residential.
Cost Segregation Study
An engineering study that reclassifies building components for faster depreciation.
Section 179 Deduction
Elect to expense qualifying assets immediately instead of depreciating over time.
Depreciation Recapture
When you sell, the IRS taxes back the depreciation you claimed — at 25%.
Educational content only. Consult a CPA or attorney for advice specific to your situation.