A fair question from tax professionals this winter: if rates might go up later, why do a cost segregation study and accelerate depreciation now? Here is the math.
Illustration only. A study produces $200,000 of first-year depreciation and you are in the top bracket. At 37 percent, that is $74,000 of federal tax you do not pay for 2026. If you waited and the top rate went back to 39.6 percent, the same deduction would be worth $79,200, about $5,200 more. But a bill has to pass, it has to get signed, you have to still be in the top bracket, and you have to be able to use the deduction that year. Meanwhile you went without $74,000 for however many years you waited. A proposal is not a rate, and a dollar now has a head start on a dollar later.
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.