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Bonus Depreciation

All articles tagged with #bonus depreciation

real-estate13 days ago•11 min saved

Permanent bonus depreciation lures high earners into vacation-rental bets

Permanent 100% bonus depreciation lets high-earning investors offset much of a vacation rental’s cost against current income if they actively run the business and meet the material-participation rule. This has spurred a surge in pricey vacation-home purchases as a wealth-building strategy, with upfront tax savings touted as a big upside. However, depreciation is a deferral (not forgiveness), benefits depend on strong cash flow and market viability, and gains can be recaptured on sale or via exchanges; rigorous record-keeping and audit risk accompany the strategy.

via Business Insider|

#bonus-depreciation #depreciation #real-estate

business2 months ago•4 min saved

Family offices back durable, asset-heavy bets to dodge AI disruption

Equity Group Investments, backed by Sam Zell’s family, bets on asset-heavy, old-economy businesses—such as John Deere dealerships, tuna farming/fishing, and a cross-border bridge—to resist AI disruption. With long investment horizons and tax benefits from bonus depreciation, the firm seeks steady cash flow and geographic moats, while traditional private equity favors shorter-horizon, asset-light bets, even as inbound interest grows from business owners facing tariffs and inflation.

via CNBC|

#ai-disruption #bonus-depreciation #business

tax-policy6 months ago•1 min saved

IRS expands 100% bonus depreciation under One, Big, Beautiful Bill, adds sound-recording eligibility

Treasury and the IRS issue Notice 2026-11 establishing a permanent 100% first-year depreciation deduction for qualifying property acquired after Jan 19, 2025 under the One, Big, Beautiful Bill, with interim guidance that taxpayers may rely on existing rules. The notice also outlines elections to claim 40% (60% for some longer production properties or certain aircraft) instead of 100%, to deduct for specified plants, and to treat certain components of larger self-constructed property as eligible; taxpayers may also choose not to deduct for a qualified sound recording production. For sound recordings added by the OBBB, a production may qualify for the deduction if it commences in a taxable year ending after July 4, 2025, with acquisition timing deemed to occur when principal recording commences and placement in service at initial release or broadcast.

via IRS (.gov)|

#bonus-depreciation #capital-investment #irs-guidance

finance2 years ago•6 min saved

"Strategies for W-2 Employees to Slash Federal Taxes and Maximize Refunds"

A W-2 employee in California reduced his federal taxes by 98% for a tax refund by utilizing real estate strategies, including bonus depreciation, to deduct elements of his investment properties. By qualifying as a real-estate professional through his spouse's status and utilizing the short-term rental tax loophole, he significantly reduced their taxable income, resulting in a minimal federal tax liability. He now teaches others how to achieve similar deductions and emphasizes the importance of long-term property ownership to avoid potential tax recapture.

via Business Insider|

#bonus-depreciation #finance #investment-property