The "No Used Property" Rule: How Original Use Defined Bonus Depreciation Before the TCJA
· 9 min read · Government Legislation
For a decade, bonus depreciation required 'original use' to begin with the taxpayer - locking out every investor who bought an existing building. Here's how the rule worked, why it mattered, and how the TCJA changed everything.
What This Article Covers
This guide focuses on the "no used property" rule: how original use defined bonus depreciation before the tcja and explains how the strategy applies to real estate investors evaluating accelerated depreciation opportunities.
- Actionable tax planning context for government legislation 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.