If you signed a contract before January 19, 2025 on a building that still is not finished, your bonus depreciation is on the old phase-down schedule from the 2017 Tax Cuts and Jobs Act, and the election had nothing to do with it.
In this illustration, not a particular client, a cost segregation study finds $500,000 of five, seven and fifteen year components in a commercial building. Placed in service in December 2026, that is 20 percent bonus, so $100,000 of bonus depreciation in year one on top of regular depreciation. Placed in service in January 2027, the bonus is zero. Same building, same study, one month apart. The components still get their shorter lives either way, so the deduction is spread out rather than lost.
From The Tax Strategy Playbook.
Full episode: https://taxstrategyplaybook.com
No-cost analysis through CSSI: https://calendly.com/david-wiener/cs or 770-224-8504 x2
David's website: https://davidhwiener.com
This is educational content, not tax advice for your situation. Talk to your tax professional.