🦍 OBBB Play: 100% Bonus Depreciation Is Back — And Cost Segregation Is the Power Move
Attention, real estate investors:
The IRS just turned the depreciation jungle into an all-you-can-eat banana buffet.
Thanks to OBBB, 100% bonus depreciation is back for assets placed in service after January 19, 2025 — and that means cost segregation just became your best friend (besides your accountant…and maybe your gorilla).
🚀 What’s the Big Deal?
Bonus depreciation means you can immediately write off the cost of qualifying property, instead of waiting decades.
60% bonus if your asset went into service Jan 1–19, 2025
100% bonus for anything after Jan 19, 2025
This applies to stuff with a useful life of 20 years or less: flooring, cabinets, landscaping, HVAC, appliances — basically, the guts of your property.
🏗️ Why Cost Segregation Matters (Now More Than Ever)
Normally, rental property depreciation is a slow crawl:
27.5 years for residential rentals
39 years for commercial
But with a cost segregation study, you break out “quick burn” assets:
Carpet, flooring, wall coverings
Land improvements (fencing, parking lots, landscaping)
Electrical and plumbing for equipment
These can now be fully deducted in year one (if placed in service after Jan 19).
🦍 Example: Real Estate Bananas
Buy a $1.2M rental in Feb 2025. Cost seg shows:
$150,000 in 5-year assets (appliances, carpet, etc.)
$50,000 in 15-year assets (land improvements)
Result:
You write off $200K right away — in 2025.
That could offset your rental income…or ALL your income if you’re a real estate professional (REP).
đź’ˇ Who Should Jump on This?
Passive investors: Offset rental or K-1 income with big deductions
REPs: Offset ANY income, including W-2 or business earnings
Anyone buying, building, or renovating after Jan 19, 2025 — especially for properties over $500K
🦔 How Hedgi Helps
Tags and tracks all cost seg categories in your books
Flags bonus depreciation opportunities automatically
Helps you prove REP status and keeps every deduction audit-ready
Models your year-one vs. long-term tax savings
đź“ť Final Thoughts
The return of full bonus depreciation is the best news in real estate tax since sliced bananas.
But it won’t last forever — rules, rates, and REP status can change.
Review any acquisition after Jan 19.
Book a cost seg if you haven’t.
Let Hedgi help you capture every dollar.
Sign up for the waitlist. We’ll help you go full gorilla on your next tax return.