by Dave McGuireJune 19, 2023

With bonus depreciation dropping, is cost segregation worth it?

In his latest piece in Accounting Today, Dave McGuire discusses the effect that reducing bonus depreciation has on cost segregation.

The Tax Cuts and Jobs Act of 2017 expanded bonus depreciation to additional assets and allowed for 100% bonus depreciation. While the qualification for bonus eligibility does not change, the amount eligible starts leveraging down in 2023 by 20% per year. This means that bonus depreciation is 80% for 2023, 60% for 2024, and so on until it completely phases out. For cost segregation professionals, this leads to the question, what happens to cost segregation if bonus phases out?

Read the full article.

David McGuire is a leading expert on cost segregation, fixed assets and depreciation law and a co-founder of McGuire Sponsel. McGuire continues to grow McGuire Sponsel’s national presence in cost segregation and depreciation.

He is the primary resource for alliance firms in regards to how tax law affects depreciation. His knowledge in determining asset costs and classifications has held up against IRS scrutiny and has built the firm into a trusted industry resource.