Front-load deductions into the year they do the most good.
Bonus depreciation lets you deduct a large share of qualifying short-life property in its first year rather than spreading it over time. Combined with a cost-segregation study, it turns a meaningful portion of a building's cost into a year-one deduction — and timing that against income is where the value is.
Deduct now rather than over decades
Bonus depreciation is an additional first-year deduction for qualifying property — generally assets with a recovery period of 20 years or less. Rather than depreciating those components over their normal schedule, you deduct a large percentage of their cost immediately, in the year the property is placed in service.
On its own, the assets inside a building that qualify are limited. Coupled with a cost-segregation study, the picture changes: the study reclassifies a substantial part of the building into the short-life categories that bonus depreciation applies to, so the two strategies compound. Cost segregation finds the deductions; bonus depreciation pulls them into year one.
Because the benefit is concentrated in a single year, timing is everything. The deduction is most valuable in a year with income to offset, and the applicable bonus percentage has changed with legislation over time. We plan the placed-in-service timing and the size of the deduction around your tax picture rather than treating it as automatic. This is general information, not tax advice — your CPA should confirm the current rules and how they apply to you.
- You have a high-income year to offset
- You're pairing it with a cost-segregation study
- A property is being placed in service this tax year
- You're timing an acquisition around your income
- You want maximum early after-tax cash flow
How we use it
Year-one acceleration
A large share of qualifying short-life property deducted in the first year, rather than spread across its full recovery period.
Stacked with cost seg
Cost segregation feeds bonus depreciation by reclassifying building components into the categories that qualify for the first-year deduction.
Deduction sizing
We model the size of the deduction against the applicable percentage and your income so the benefit is captured, not stranded.
Placed-in-service timing
Coordinating when a property is placed in service so the deduction lands in the year it offsets the most income.
Cash-flow impact
Front-loaded deductions improve early after-tax cash flow, which can be reinvested or used to service the next acquisition.
Eligibility review
We confirm which components qualify and document the basis so the position holds up with your advisor and on the return.
How we work
Project the income year
We look at the income you're trying to offset and the year you'll realize it, so the deduction is timed where it does the most good.
Coordinate the study
We line up a cost-segregation study so the maximum eligible basis flows into bonus-qualifying categories.
Model and time
We model the year-one deduction against the current rules and your tax posture, then coordinate placed-in-service timing with your advisors.
Why timing decides the value
- Concentrates deductions in the year you most need them
- Compounds with a cost-segregation study
- Most valuable against a high-income year
- Improves early after-tax cash flow for reinvestment
- Placed-in-service timing planned, not left to chance
- Eligibility and basis documented with your CPA
Time the deduction to the income
Tell us about the acquisition and the year you're planning for. We'll give a direct read on the first-year benefit and how to time it. This is general information, not tax advice — confirm specifics with your CPA.