Redian新闻
>
"bonus appreciation" in real estate
avatar

"bonus appreciation" in real estate

梦想居士
楼主 (文学城)

The concept of "bonus appreciation" in commercial real estate gained significant attention following the Tax Cuts and Jobs Act (TCJA) of 2017. This legislation brought several changes to the U.S. tax code that impacted the commercial real estate sector, particularly through bonus depreciation rules. Here’s an overview:

### What is Bonus Depreciation?

Bonus depreciation allows businesses to immediately deduct a significant percentage of the purchase price of eligible assets, rather than spreading those deductions over the asset's useful life. This accelerated depreciation can significantly reduce taxable income in the year the asset is placed in service.

### Changes Introduced by the TCJA

1. **Increased Deduction Percentage**:
   - The TCJA increased the bonus depreciation percentage from 50% to 100% for qualified property acquired and placed in service after September 27, 2017, and before January 1, 2023. This means that businesses could immediately deduct 100% of the cost of eligible assets in the year they were put into service.

2. **Expanded Eligibility**:
   - The definition of eligible property was expanded to include used property. Previously, bonus depreciation was only available for new property. This change significantly broadened the scope of assets that could qualify.

3. **Qualified Improvement Property (QIP)**:
   - The TCJA intended to include QIP (interior improvements to nonresidential buildings) as eligible for bonus depreciation. However, a drafting error initially excluded it. This was later corrected by the Coronavirus Aid, Relief, and Economic Security (CARES) Act in 2020, making QIP eligible for 100% bonus depreciation retroactively to January 1, 2018.

### Impact on Commercial Real Estate

1. **Immediate Write-Offs**:
   - Property owners and investors could immediately deduct a substantial portion of the cost of new or used assets, such as building improvements, furniture, fixtures, and equipment. This accelerated deduction could result in significant tax savings and improved cash flow in the early years of ownership.

2. **Increased Investment Activity**:
   - The immediate tax benefits provided an incentive for increased investment in commercial real estate properties and improvements. Investors could reinvest the tax savings into additional properties or improvements, potentially leading to greater economic activity within the sector.

3. **Strategic Planning**:
   - Real estate investors had to carefully plan the timing of acquisitions and improvements to maximize the benefits of bonus depreciation. This required coordination with tax professionals to ensure compliance and optimal tax outcomes.

4. **Impact of Phase-Out**:
   - The 100% bonus depreciation rate begins to phase out for property placed in service after December 31, 2022. The deduction percentage decreases by 20% each year until it is completely phased out by January 1, 2027. This impending phase-out could accelerate investment and improvement activities in the near term as investors seek to take advantage of the full deduction before it diminishes.

The bonus depreciation provisions introduced by the TCJA significantly enhanced the attractiveness of investing in commercial real estate by providing immediate tax benefits, which in turn could stimulate economic activity and growth within the sector.

avatar
BrightLine
2 楼
要是没用到就不是好地主,避税没学好,房地产是一个大大的避税的shelter, 哈哈
avatar
mobius
3 楼
这是不是电器,装修cost直接抵税,不用折旧?
avatar
米奇的厨房
4 楼
去房坛看建宁的文章吧,他早就发文写过,写的很清楚
avatar
绣球花开
5 楼
用过了 现在已经不能100%了吧 这个要商产做cost seregation 效果好

疫情期间为了用这个 我带2层口罩跟做cost seregation的人见面  还好口罩是管用的

再配上1031 exchange

 

 

avatar
绣球花开
6 楼
他的文章我记得更偏民居 商产更划算
avatar
梦想居士
7 楼
Yep, ends 2023
avatar
米奇的厨房
8 楼
老朽JY他们的好是在告诉你可以现在做的,而不是他已经做完了,留给我们看着流口水的
avatar
绣球花开
9 楼
当时加油站 汽修服务的可以write off a lot because their structures can be

当年搞定 正常商产是39年straight line 当然商产比民居的assigned depreciation basis value 要高一点

avatar
梦想居士
10 楼
我不是房地产方面的专家, - 我还在学习, I asked ChatGPT, lol

avatar
柠檬椰子汁
11 楼
"commercial real estate"
avatar
螺丝螺帽
12 楼
你的回答看着容易理解啊, 赞一个
相关阅读
2024年8月29-9月3日广州 《精英催眠营》精品工作坊,成为你自己的催眠大师!中国为什么要屈从,又不是打不过?! 白云蓝天说得对。问题是,中国后来又真的屈从了,那不就是因为打不过么。放眼长期投资理财,淡看短期股涨股跌,继续珍惜享受日常生活:2024年8月14-18日吉利根老师催眠线上授证课第三模块(附广州精英催眠营证书课程时间)2024年8月17日星期六RELO广州英语教学研讨会I received unexpected refund, it's real absolutely no scam房地产杂谈 六十一,关于赚钱Pat 刚给Intel全体员工发信:大裁员的同时砍掉三分之二的real estate,并和亚马逊深度合作周末和孩子们通话Spring 全家桶版本更新:Spring Boot、Spring Security 和 Spring Modulith人类最美的作品是体育比赛,最恶的产物是战争有史以来最大real estate crash要来了2024年8月最新移民排期:职业移民无变化,仅亲属移民表B部分类别前进The real luxury in life is a morning cup of coffee while一位无奈的老人的求助三岁看老…是不是聊聊中国在俄罗斯身上一共失去了多少土地另类的退休生活:Real Estate Is Your 401K (WSJ)2025QS最佳留学城市排名发布!英国伦敦蝉联榜首!波士顿仍是美国最佳留学城市!2024年7月30日 – 8月1日RELO英语学术论文写作与发表暑期训练营2024年8月绿卡排期出炉:亲属移民两类前进有人在推特上发表评论认为现在的情况和1929年很像?真遇见情况,敢出手么看的懂吗?上海话你会愿意花钱,让你的 iPhone 更聪明一点吗?Epic! Iconic!*****时刻房租和分红还是有本质区别的全红婵:全天下男人都想娶我教练当老婆!陈若琳:我有事先走一步2024年8月16-18日林文采心理营养亲子关系工作坊:育儿不费爹妈的秘诀!
logo
联系我们隐私协议©2024 redian.news
Redian新闻
Redian.news刊载任何文章,不代表同意其说法或描述,仅为提供更多信息,也不构成任何建议。文章信息的合法性及真实性由其作者负责,与Redian.news及其运营公司无关。欢迎投稿,如发现稿件侵权,或作者不愿在本网发表文章,请版权拥有者通知本网处理。