In recent years, bonus depreciation in connection with real estate transactions has been a hot-button topic. Bonus Depreciation in Connection With Real Estate TransactionsNot all investable real estate qualifies for bonus depreciation. Typically, real estate investors looking to defer income taxes have relied on Section 1031 exchanges to exchange one real estate investment for a different real estate investment in a tax-deferred manner. A third option — bonus depreciation — has become a contender that more real estate investors are opting into before it phases out entirely. Bonus Depreciation, Phase-Out Schedule Year the Asset was Placed in Service Bonus Depreciation Rate 2017-2022 100% 2023 80% 2024 60% 2025 40% 2026 20% 2027 0%On January 31, 2024, the bipartisan bill deemed H.R.

Source: Forbes February 06, 2024 16:13 UTC