The 2025 Window: Bonus Depreciation and Cost Segregation

The 2025 Window: Bonus Depreciation and Cost Segregation

2025 isn’t the end of bonus depreciation — it’s a reset. For property owners who understand timing, this year is a bridge to a more strategic era of tax planning. While bonus depreciation steps back from 100%, cost segregation remains the lever that lets you accelerate deductions and recover cash faster.

We’ve been conducting full studies for our clients and have offered a free preliminary estimate so owners can see the potential benefit before committing. Whether you built, purchased, or renovated property in the past few years, this could mean tens or even hundreds of thousands in accelerated deductions.

AB 130: Faster Approvals and a Clearer Path Ahead

Approved in July 2025, AB 130 is reshaping how California cities process housing applications, cutting red tape for qualifying projects and limiting discretionary delays. It’s a response to the housing crisis that prioritizes speed, clarity, and production.

We’re already implementing the framework for upcoming developments, and the early signs are promising. The key takeaway: property owners who align with the new standards — density, design, environmental consistency — can move forward with far less friction.

AB 130 isn’t just another bill. It’s a permission slip to build smarter and faster — and it’s here to stay.

The Government Shutdown’s Ripple in Real Estate

The recent government shutdown wasn’t just a headline — it slowed real business. Loan processing through FHA and VA temporarily stalled, IRS verifications delayed closings, and uncertainty crept into investor sentiment. Some lenders even paused underwriting pipelines until clarity returned.

While the market absorbed most of the shock, the real cost was time: appraisals were pushed back, 1031 exchanges got tighter, and federal housing programs froze midstream. The lesson? Policy uncertainty translates directly into project delays and holding costs.

With Washington gridlock still a risk, the takeaway is to stabilize your own timeline — control what you can, and stay liquid. Here are three steps every property owner should review before year-end:

• Accelerate Deductions — use cost segregation to capture remaining bonus depreciation before year-end.
• Optimize Entity Structure — revisit LLCs or S Corps to ensure you’re maximizing QBI and loss carryforwards.
• Leverage Energy Credits — even smaller upgrades, like HVAC, windows, or lighting, can qualify for meaningful credits.

These aren’t just compliance tasks — they’re cash-flow strategies that reward proactivity.