Do you know that there is a phase out period for the current bonus depreciation law?
Bonus Depreciation Phase Out
Bonus depreciation is a legal tax law that allows for accelerated depreciation. In multifamily purchases, after a cost segregation study is performed, approximately 30% of the purchase price of a multifamily asset can be depreciated in year 1. Each deal will be different based on the cost segregation study. The 30% figure is a quick back of the envelope figure. Please consult your CPA and tax advisors. This law came into existence in 2017 but it does have a sunset or phase out period.
What is the phase out period?
- 2021 – 100%
- 2022 – 100%
- 2023 – 80%
- 2024 – 60%
- 2025 – 40%
- 2026 – 20%
- 2027 – 0%
Why do I share this story with you?
I share this because some people may not know about the impact of bonus depreciation and some may not understand that the tax law will begin to phase out.
Don’t Miss Out – Subscribe and provide 5 Star Review On Apple Podcasts
Don’t miss out on an episode to learn from other seasoned investors. If you have yet to subscribe and provide us with a five star review on Apple Podcasts, it’s FREE and will take 30 seconds. Click the link below, hit the SUBSCRIBE button then scroll down and select 5 stars (the fifth star furthest to the right). That’s it!
If you’ve already subscribed and provided us with a five star review, then thank you and please share the show with a friend!
