Renovations and Improvements After January 19, 2025: When Improvement Costs Get 100% Bonus Depreciation
· 9 min read · Core Tax Strategy
Improvement costs are separate property with their own acquisition date. When physical work begins after the OBBBA cutoff, the 5, 7 and 15-year components qualify at 100% even on a building bought earlier. Self-constructed property rule, 10% safe harbor, capitalize vs repair, and dispositions.
What This Article Covers
This guide focuses on renovations and improvements after january 19, 2025: when improvement costs get 100% bonus depreciation and explains how the strategy applies to real estate investors evaluating accelerated depreciation opportunities.
- Actionable tax planning context for core tax strategy investors
- Frameworks and decision points that affect first-year deductions
- How this topic connects to engineering-based cost segregation execution
Who Should Read This
This article is written for property owners, sponsors, and tax-aware investors who want practical guidance they can discuss with a CPA before filing.
Estimated length: approximately 1,980 words (9 min read).
Why This Matters in Practice
Depreciation strategy is rarely one-size-fits-all. The details covered in this article help you evaluate timing, reporting posture, and documentation quality so your filing position is both tax-efficient and defensible under audit.
For a full implementation review, compare this topic with related guides and then request a property-specific estimate.