Where Does Bonus Depreciation Come In?
The Economic Stimulus Act allows taxpayers to expense 50 percent of the cost of qualifying new property placed in service during the period beginning January 1, 2008 and ending December 31, 2008, regardless of the taxpayer’s taxable year. Qualifying property includes most assets with a tax depreciation life of less than 20 years, but the property’s original use must have started with the taxpayer after December 31, 2007. If done correctly, cost segregation, coupled with bonus depreciation, can save as much as 3–10% of a building’s cost.
