Bonus Depreciation for Real Estate Investors
Accelerate your deductions, enhance your cash flow, and grow wealth more rapidly using Bonus Depreciation strategies from GavTax Advisory Services—your trusted tax professionals.
What is Bonus Depreciation?
Bonus Depreciation is a highly effective federal tax incentive that enables real estate investors to deduct a significant portion of the cost of qualified property in the same year it is placed in service. Under current tax regulations, assets with a useful life of 20 years or less may qualify for this accelerated deduction, offering substantial tax relief.
At GavTax Advisory Services, we specialize in helping real estate investors leverage bonus depreciation to lower taxable income and generate more capital for reinvestment. Our expert team ensures you take full advantage of available deductions, enhancing your ability to grow and scale your real estate portfolio efficiently.
Who Can Benefit from Bonus Depreciation?
Bonus depreciation is highly beneficial for:
Real estate investors purchasing rental properties
Business owners acquiring equipment or company vehicles
Property developers completing renovations or build-outs
Commercial landlords upgrading retail and office spaces
Whether you’re investing in a duplex or a commercial warehouse, bonus depreciation can significantly reduce your tax burden by allowing you to deduct substantial expenses upfront.
Bonus Depreciation vs. Section 179 Expensing
While both options offer accelerated depreciation, bonus depreciation has several key advantages:
No annual income caps or limits on total deductions
Can generate a net loss to offset other taxable income
Available for both new and used property
Applies to real estate components identified via a cost segregation study
How GavTax Maximizes Bonus Depreciation for Investors
At GavTax Advisory Services, we specialize in combining bonus depreciation with advanced cost segregation and tailored tax planning for real estate professionals.
Step-by-Step Depreciation Optimization
Property & Asset Review
We evaluate your investment properties and recent capital improvements—from multifamily units to retail spaces.
Cost Segregation Study
Our CPAs identify building components that qualify as 5-, 7-, or 15-year assets eligible for immediate depreciation.
Bonus Depreciation Application
We apply current IRS regulations to help you deduct as much as possible in the first year—maximizing your cash flow and reinvestment power.
Ongoing Strategic Tax Planning
Through quarterly tax planning sessions, we help you time your acquisitions and improvements for optimal depreciation benefits.
Why Real Estate Investors Love Bonus Depreciation
With a booming housing market, strong job growth, and diverse commercial opportunities, bonus depreciation offers investors a competitive edge:
Reduce federal taxable income in the same year you invest
Increase ROI by freeing up working capital
Offset income from other business ventures
Defer tax liabilities while continuing to expand your real estate portfolio
2025 Tax Law Update: Don’t Miss the Window
As of 2025, bonus depreciation allows for an 80% first-year deduction—down from 100% in prior years. With further reductions expected in the coming years, now is the time to act.
By working with GavTax Advisory Services, you’ll stay compliant with federal changes while optimizing the timing of your depreciation claims.
Real Case Studies
One of our clients purchased a $1.5 million multifamily building. After a cost segregation study, we helped them claim over $310,000 in first-year bonus depreciation—nearly eliminating their taxable income.
Another investor acquired a commercial property and upgraded the lighting and HVAC systems. Our team helped them save over $200,000 in taxes through bonus depreciation strategies.
Act Now to Maximize Your Tax Savings
If you’ve purchased or improved property this year, you may qualify for substantial tax relief under bonus depreciation. But time is of the essence.
FAQs
Frequently Asked Questions
In 2025, bonus depreciation allows for 80% of eligible asset value to be deducted upfront. This percentage will continue to phase down unless legislation extends it.
Yes—as long as the property is new to you and placed in service during the tax year, it qualifies.
Tangible personal property with a useful life of 20 years or less, including appliances, HVAC systems, roofing, and improvements identified in cost segregation studies.
Yes. Unlike Section 179, bonus depreciation can produce a loss that offsets other income or is carried forward.
Regular depreciation spreads deductions over multiple years. Bonus depreciation accelerates deductions into the first year.
It’s a federal tax benefit. Always consult a tax advisor for local impacts.
Yes. A cost segregation study helps identify components of a property eligible for bonus depreciation, which is one of the most effective tax strategies for real estate investors.
Start Saving with Bonus Depreciation
From Heights to Katy, and from Montrose to Pearland, bonus depreciation can add thousands back to your bottom line—starting this year.
📲 Ready to see how much you can save?
Book your personalized consultation with GavTax Advisory Services and start building your real estate wealth with smarter tax strategies.
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