If enacted as law in its current form — recognizing the Senate will have an opportunity to revise it, and afterward, it will return to the House for further modifications — "The One, Big, Beautiful Bill" would provide a significant benefit to conducting a cost segregation study by providing immediate expensing of 100% of the cost of qualified property acquired between 2025 and 2029. Please see our article below that provides an example of the tax benefit associated with a cost segregation study and 100% bonus depreciation on newly constructed or acquired property.
Current Law: Under current law, taxpayers are generally required to deduct the cost of property used in a trade or business over a period of time. However, in the case of certain "qualified property" (including most equipment and machinery), a taxpayer is permitted to deduct a percentage of the cost in the first year that the property is placed in service ("immediate expensing"). For qualified property placed in service in 2025, a taxpayer is generally permitted to immediately expense 40 percent of the cost. For qualified property placed in service in 2026, a taxpayer is generally permitted to immediately expense 20 percent of the cost. Provision: This provision allows taxpayers to immediately expense 100 percent of the cost of qualified property acquired on or after January 20, 2025, and before January 1, 2030.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
