Recent tax law changes have created bigger opportunities for property owners to save on taxes and free up cash. With cost segregation and enhanced bonus depreciation, you can accelerate your deductions — putting more money in your pocket sooner. Whether you’re a real estate investor, business owner, or property developer, 2025 is the year to put these tools to work.

The latest legislation increased bonus depreciation rates and adjusted depreciation rules, making timing and planning more important than ever. If you know how to apply these provisions, you can dramatically lower your tax bill in the first year of ownership or improvement.

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How Cost Segregation and Bonus Depreciation Can Help Property Owners

Cost segregation reclassifies certain components of your property into shorter depreciation schedules. Instead of depreciating everything over 27.5 or 39 years, you can move qualifying items — like carpeting, cabinetry, decorative lighting, landscaping, and signage — into shorter tax lives, often 5, 7, or 15 years.

The result? You claim deductions sooner, reduce your current-year tax liability, and boost cash flow that can be reinvested into your business or properties.

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Bonus Depreciation in 2025

Bonus depreciation lets you write off the full cost of qualifying property in the year it’s placed into service.
Here's what's changed:

1. 100% bonus depreciation applies to qualifying assets placed in service after January 19, 2025.

2. For assets acquired or placed in service before that date, the bonus rate is 40%.

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Section 179 Expensing – Bigger Limits This Year

Section 179 expensing also saw a significant boost. In 2025, you can immediately deduct up to $2.5 million of qualifying assets — including certain building improvements, equipment, and software — in the first year.

Keep in mind: the deduction begins to phase out dollar-for-dollar once your total asset purchases for the year exceed $4 million.

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Simple Strategies To Maximize Your Tax Savings

The success of real estate today isn’t just about location — it’s about using the tax code to your advantage. Here’s how we help clients get the most from these strategies:

• Identify assets within your property that qualify for shorter depreciation schedules. This includes your cabinetry, finishes, outdoor improvements, and even signage.

• Apply the correct IRS guidelines so your property complies with current bonus depreciation rules and deadlines.

• Model your savings in advance so you know the benefit before filing your return.

• Time acquisitions and improvements to secure the highest deduction possible.

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We Help You Turn Real Estate into Real Returns

Our goal is to help you uncover hidden tax savings and keep more of your investment income working for you. With the 2025 legislative changes, the opportunities are greater — but only if you take action early.

You can:

• Accelerate deductions by identifying eligible components sooner.

• Improve cash flow and ROI in your first year of ownership.

• Reduce your tax burden without changing your investment strategy.

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Conclusion

2025’s rules won’t last forever — make sure you capture the full benefit while they’re here. Contact us today for a no-obligation savings analysis and see how much you could keep this year.

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