Bonus Depreciation
Strategic Solutions: Maximizing Returns via Bonus Depreciation
Accelerated Tax Savings for the Modern Investor
The landscape of real estate taxation has undergone a paradigm shift. With the permanent reinstatement of 100% Bonus Depreciation, investors now have an unprecedented opportunity to front-load tax deductions, dramatically increasing the after-tax internal rate of return (IRR) on their acquisitions.
The Stonecliff Precision Method: Cost Segregation
To unlock the full potential of bonus depreciation, a standard “building vs. land” allocation is not enough. Stonecliff partners with specialized engineering firms to perform Cost Segregation Studies, reclassifying structural components into shorter-lived asset categories.
Commonly Reclassified Assets (5, 7, or 15-year life):
Land Improvements: Parking lots, specialized landscaping, fencing, and outdoor lighting.
Personal Property: Specialty flooring, decorative lighting, and security systems.
Specialized Systems: Reinforced foundations for heavy machinery or specific HVAC configurations for medical use.