Are You the Right Fit for Cost Segregation?
That should be the No. 1 question on your mind. It is no small undertaking, and while O’Connor has some of the best fee options in the industry, it can still cost a good deal. The savings can be truly immense, but you need to be in the right position to take advantage of a cost segregation study.
The One Big Beautiful Bill and Reinstatement of Bonus Depreciation While the Tax Cuts and Jobs Act of 2017 was originally scheduled to sunset, starting December 31, 2022, On July 4, 2025, The One Big Beautiful Bill was signed into law permanently reinstating 100% bonus depreciation. Qualifying assets put into service after January 19, 2025 can now be written off immediately, which keeps cost segregation a valuable strategy for maximizing deductions.
Updated Bonus Depreciation Timeline
- Sept. 28, 2017 – Dec. 31, 2022 100% bonus depreciation available under the Tax Cuts and Jobs Act (TCJA).
- 2023 80% bonus depreciation (first step in the scheduled phase-down).
- 2024 60% bonus depreciation.
- Jan. 1 – Jan. 19, 2025 40% bonus depreciation (final phase of the TCJA phase-down).
- Jan. 20, 2025 and onward 100% bonus depreciation permanently restored
If you have a commercial property and a large income with no way to lower your tax burden, then cost segregation is the perfect tool for you. Feel free to reach out to one of our experts to explore the possibilities of moving forward. If you do not qualify, we will let you know instead of trying to push forward on a venture that will not benefit you in any way.