Don’t Miss Out on 100% Bonus Depreciation!

100% Bonus Depreciation is changing after the 2022 tax year. It will be reduced in 

  • 2023 to 80%
  • 2024 to 60% 
  • 2025 to 40%
  • 2026 to 20% 
  • 0% bonus depreciation in 2027

That is if nothing is changed in the coming years.  

Cost Segregation Studies are Still Beneficial

Although bonus depreciation is being reduced, it does not reduce the overall benefit of a cost segregation study; it just takes longer to receive the total benefit. Therefore, even with 0% bonus depreciation, there is a significant benefit to having a cost segregation study done. The only difference is that it will take approximately six years to take full advantage of the study versus getting all of the benefits in year one with 100% bonus depreciation. 

How Does Cost Segregation Lower Your Tax Bill?

A cost segregation study assesses the individual assets of your property so that you can accelerate their depreciation, making it possible to deduct more from your taxes!

For example, rather than letting your flooring and your outlets depreciate at the same rate as the real property, you can accelerate their depreciation to 5 years! Likewise, parking lots, sidewalks, and landscaping can be accelerated to 15-year depreciation.

How does Bonus Depreciation Affect these Deductions?

100% bonus depreciation grants you the ability to immediately take all of the benefits of your cost segregation study. And these losses can be carried forward indefinitely and used to offset high-income years, including capital gains tax. 

Money in your pocket now is money that is working for you now. You can invest it and earn from it now. If you wait until 2023 to complete your cost segregation study, the bonus depreciation will be lowered to 80%. This means you can take 80% of the benefits immediately while the remaining 20% will be realized in six years.

Get Started Now!

M&E provides engineer-based studies, not the substandard residual studies offered by other firms.

We provide exceptional customer service and unmatched integrity before, during, and after the study is done. Therefore, clients return to us repeatedly and recommend us to their family and friends.

Our final reports stand on their own. However, in the event of an IRS audit or if any questions are raised, we will defend our studies at no additional cost.

Find Out How Much You Can Save on Your Taxes

Get a no-cost, no-obligation estimate today!

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