ARTICLE
11 June 2025

Bonus Depreciation And The One, Big, Beautiful Bill

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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"...
United States Real Estate and Construction

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.

Maximizing Tax Benefits: Exploring Proposed 100% Bonus Depreciation and Strategic Cost Segregation Benefits

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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.

waysandmeans.house.gov/...

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.

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