Aditya Kasturi | Realogics Sotheby's International Realty

Bonus depreciation only works when the calendar works

A large deduction sounds exciting. It only matters if the property is truly placed in service in the year you need.

What qualifies

Bonus depreciation usually applies to the shorter-life assets found inside a cost segregation study. It does not apply to the building shell itself.

What people miss

The purchase date is not the whole story. The property also has to be ready and available for its intended use. That means the furnishing, setup, and operating plan matter too.

Why timing matters

If the property misses the tax year you were planning around, the value of the deduction can drop fast. We line up the deal clock, the setup clock, and the CPA clock together.

Educational only, not tax advice. Your CPA must confirm tax treatment, timing, participation, basis, and filing before you act.

Common questions

Can a late-year purchase still count?

Sometimes. It depends on whether the property is really placed in service in time. A rushed setup can create risk instead of savings.

Does this make a weak property worth buying?

No. The tax benefit should support a good deal, not rescue a weak one.

What about recapture later?

Recapture is part of the full plan. Your CPA models that side before you treat the first-year deduction as the whole story.

Need the deal timing and tax year to line up cleanly?

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Last updated: July 27, 2026

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