Bonus Depreciation & Section 179 for Real Estate
Turn a slow 27.5-year deduction into a six-figure year-one write-off.Cost segregation plus 100% bonus depreciation can pull years of rental depreciation into a single year — but only if you understand what qualifies, how §179 fits, and the passive-loss limits and recapture waiting on the other side. This Guide walks you through all four, with realistic numbers on a $400,000 rental, and comes with an Excel tool that builds the schedule on your own figures.WHO THIS IS FOR· Buy-and-hold landlords who want the largest legal year-one deduction· Investors weighing whether a cost-segregation study is worth it· Owners who have heard of bonus depreciation but aren’t sure how it applies to real estate· Anyone who wants to model the passive limits and recapture before they accelerateWHAT'S INSIDEThe ebook — a plain-English Guide (2026 edition) with four chapters:· How Real Estate Depreciates — 27.5 vs 39 years, why land is never depreciable, and the land/building split· Cost Segregation — breaking the building into 5-, 7-, and 15-year components to unlock acceleration· Bonus Depreciation & Section 179 — 100% bonus in 2026, what §179 covers, and how they stack in year one· The Catches — passive-activity limits on the loss, and depreciation recapture when you sellThe Excel tool — Depreciation Schedule Builder. Enter your purchase price, land value, closing costs, and cost-seg breakout and it returns your depreciable basis, the year-one bonus and §179 deduction on short-life property, the MACRS first year on the shell, and a multi-year straight-line schedule for the building.WHAT YOU'LL WALK AWAY ABLE TO DO· Allocate basis between land and building defensibly· Reclassify a building into 5-, 7-, and 15-year cost-seg property· Apply 100% bonus depreciation and §179 to produce a year-one deduction· Test whether the resulting loss is usable under the passive limits· Model §1245 and §1250 recapture before you sellFORMAT & DELIVERYInstant download. PDF ebook + Excel tool (.xlsx). Lifetime access and free updates.SAVE MORE WITH THE PACKThis title is part of the Real Estate Investor Pack — bundled at a steep discount ($449). Or get every Tax Confident guide with the All-Access Pass ($699).FAQIs this current? Yes — it uses 2026 figures, including 100% bonus depreciation and the current §179 caps. Confirm current-year limits with your preparer.Do I need special software? Any spreadsheet app that opens .xlsx (Excel, Google Sheets, Numbers). Just fill in the light-blue cells.Do I need a cost-segregation study? For a sizable property, yes — use a qualified engineering-based study for the actual component split. This Guide and tool show you what it does and let you model it.Is this tax advice? No. It is educational and makes you a sharp, informed investor. It does not replace your own preparer or a cost-segregation professional.Refunds? If it is not what you expected, reach out at hello@taxconfident.co. Disclaimer: This product is for educational purposes only and does not constitute tax, legal, or financial advice. Tax rules and thresholds change — consult a qualified tax professional regarding your specific situation.taxconfident.gumroad.com · hello@taxconfident.co
Get it → taxconfident.gumroad.com