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by JumpCrisscross 194 days ago
> PE buyers use 60% bonus depreciation and cost segregation studies to create a $70-80K writeoff on a $120K asset

Source? That looks like a juicy target for state taxation…

1 comments

Bonus Depreciation:

https://tax.thomsonreuters.com/en/glossary/bonus-depreciatio...

Cost Segregation:

https://warrenaverett.com/insights/what-is-cost-segregation/

I believe bonus depreciation is time limited (unless Congress renews it).

Residential rental property does not qualify for bonus depreciation.
The building shell does not. But 5 7 and 15 year components (appliances, cabinets, carpet, site utilities, landscaping, fence, sidewalks, etc) are eligible, that is the point of cost seg