Bonus Depreciation & Cost Segregation (2026)
Congress permanently reinstated 100% bonus depreciation for qualifying property acquired after January 19, 2025 (per NNN_Deep_Research.md; confirm against current enacted law with your CPA before relying on this for tax planning). Combined with a cost-segregation study — which reclassifies 30–40% of a property's purchase price as 5/7/15-year property (equipment, site improvements) rather than the 39-year structure — an NNN buyer can immediately expense a large share of the purchase in year one, generating substantial paper losses to offset passive income.
Key Points¶
- 100% bonus depreciation reinstated permanently (property acquired after Jan 19, 2025) — verify with CPA.
- Cost seg can reclassify ~35% of price; on a $5.5M purchase, ~$1.925M year-1 deduction (~$674K federal tax savings at 35%).
- Creates a year-1 paper loss; passive activity loss rules govern how much is usable currently.
- Regular depreciation: 39-year straight line on the building thereafter.