{"id":1506,"date":"2025-08-08T12:50:38","date_gmt":"2025-08-08T12:50:38","guid":{"rendered":"https:\/\/leyton.majjane.agency\/us\/insights\/articles\/100-bonus-depreciation-is-back-what-changed\/"},"modified":"2026-07-26T16:24:22","modified_gmt":"2026-07-26T14:24:22","slug":"100-bonus-depreciation-is-back-what-changed","status":"publish","type":"article","link":"https:\/\/leyton.com\/us\/insights\/articles\/100-bonus-depreciation-is-back-what-changed\/","title":{"rendered":"100% Bonus Depreciation is Back: What Changed?"},"content":{"rendered":"
Bonus depreciation<\/strong> allows businesses to immediately deduct a significant portion of the cost of qualified property in the year it\u2019s placed in service instead of depreciating it over many years. This strategic tax incentive encourages investment by front-loading deductions and improving cash flow.<\/p>\n With the recent passage of the One Big Beautiful Bill (OBBB)<\/a><\/strong>, 100% bonus depreciation is officially back and is a major win for real estate investors, business owners, and anyone placing qualified assets into service in 2025 and beyond.<\/p>\n Bonus depreciation is a provision in the tax code that allows taxpayers to write off a large percentage of the cost of eligible property in the same year of placing the asset in service.<\/p>\n Previously, bonus depreciation allowed:<\/p>\n However, thanks to the OBBB<\/a><\/strong>, bonus depreciation has been fully restored to 100%<\/strong> for assets placed in service after January 19, 2025, with no phase-down in sight for now.<\/p>\n To qualify for bonus depreciation, property must generally:<\/p>\n Examples include:<\/strong><\/p>\n For real estate owners, cost segregation studies<\/a><\/strong> play a critical role. <\/p>\n By breaking down a building into individual components (like flooring, lighting, and cabinetry), large portions of a building can be reclassified into 5-, 7-, or 15-year property<\/strong>. <\/p>\n Making them fully deductible in Year 1<\/strong> thanks to bonus depreciation.<\/p>\n The return to 100% bonus depreciation opens the door to significant tax savings:<\/p>\n Example: <\/strong><\/p>\n A business purchases $150,000 worth of qualifying equipment in 2025. Without bonus depreciation, it would take years to recover those costs through standard depreciation.<\/p>\n With 100% bonus depreciation:<\/p>\n Now is the time to revisit your capital investment strategy and tax planning. Whether you’re:<\/p>\n 100% bonus depreciation can change the math on your tax liability dramatically.<\/p>\n If you own a rental or commercial building, a cost segregation study<\/a><\/strong> can unlock 20\u201330% of your building\u2019s value in Year 1 deductions thanks to this powerful tax provision.<\/p>\nWhat Is Bonus Depreciation?<\/h2>\n
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What Property Qualifies?<\/h2>\n
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Benefits of 100% Bonus Depreciation<\/h2>\n
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With 100% Bonus Depreciation Back, What\u2019s Next?<\/h2>\n
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Final Thoughts<\/h2>\n