It’s one of the most common questions property owners ask: if I bought my building a few years ago, did I miss my chance? In this podcast episode, Tom Brodie, National Account Executive with CSSI – Cost Segregation Services, explains why the answer is usually no.
You Can Still Catch Up
If you bought, built or renovated a property and depreciated it the standard way, you can still have a cost segregation study done. The depreciation you missed in earlier years can be caught up in the current tax year through a change in accounting method, without amending prior-year returns.
Where Bonus Depreciation Comes In
A cost segregation study identifies the parts of your building that qualify for 5, 7 and 15-year depreciation instead of 39 years. Many of those components can also qualify for bonus depreciation, which lets you deduct a large share of their cost in the first year.
The 2025 tax law (the One Big Beautiful Bill Act) permanently restored 100% bonus depreciation for qualifying property acquired after January 19, 2025. Your CPA can confirm exactly how it applies to your situation.
Who This Applies To
Owners who have bought, built, expanded or renovated a property worth $200,000 or more in the last 15 years are the best candidates. The study fee is tax-deductible too.
Example result: a self-storage facility purchased in February 2019 for $4,052,325 (less land) produced a first-year tax savings benefit of $413,025. Results vary by property.
See What Your Building Could Save
Tom will run a free, no-obligation estimate on your property, so you’ll know what’s possible before you commit to anything.
Prefer to talk now? Call Tom at 713-906-3710.
I’m a two time Texas A&M graduate (BBA: 1981 & MBA: 2001) who worked for Shell Oil Company for 26 years. I learned the importance of communications – both verbal and written, as well as problem solving skills. With experience ranging from finding intra-company billing errors to defining customer requirements in global budgeting software to teaching people how to scuba dive and take pictures underwater. Tom Brodie Bio
