TURN INNOVATION INTO TAX SAVINGS: HOW BBB REVIVES R&D CREDITS FOR US TECH SPEND
BBB Revives 100% Bonus Depreciation, Boosting Commercial and Multifamily Real Estate.
The newly passed Build Back Better (BBB) legislation brings a significant tax incentive for commercial and multifamily real estate investors: the full reinstatement of 100% bonus depreciation for properties placed in service between January 20, 2025, and December 31, 2029. Through cost segregation studies, typically 30–40% of a property’s cost can be reclassified into shorter-lived assets.
With the new law, these reclassified assets can now be fully written off in the first year, providing immediate and substantial tax savings. This incentive improves cash flow, reduces taxable income, and enhances ROI, especially for multifamily projects rich in depreciable assets.
The reinstatement is expected to stimulate development and attract new investment, positioning real estate as a key driver of economic growth.
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BBB Revives 100% Bonus Depreciation, Boosting Commercial and Multifamily Real Estate.
The newly passed Build Back Better (BBB) legislation brings a significant tax incentive for commercial and multifamily real estate investors: the full reinstatement of 100% bonus depreciation for properties placed in service between January 20, 2025, and December 31, 2029. Through cost segregation studies, typically 30–40% of a property’s cost can be reclassified into shorter-lived assets.
With the new law, these reclassified assets can now be fully written off in the first year, providing immediate and substantial tax savings. This incentive improves cash flow, reduces taxable income, and enhances ROI, especially for multifamily projects rich in depreciable assets.
The reinstatement is expected to stimulate development and attract new investment, positioning real estate as a key driver of economic growth.
Subscribe to: