Qualified Production Property: A New Opportunity for 100% Bonus Depreciation
The One Big Beautiful Bill Act (OBBBA) introduced Qualified Production Property (QPP), a new category of real estate eligible for 100% bonus depreciation under IRC §168(n). QPP refers to nonresidential real property that is constructed or acquired after January 19, 2025, placed in service before January 1, 2031, and used...
One Big Beautiful Bill: Challenges for Energy Efficiency and Renewables, Advantages for Other Tax Strategies
The One Big Beautiful Bill Act of 2025 (OBBBA) marks a major overhaul of federal tax policy, terminating or reshaping several high-impact incentives related to real estate, clean energy, and business investment.
The legislation ends the §45L Energy Efficient Home Credit for homes sold or leased after June 30, 2026, and...
OBBBA Makes 100% Bonus Depreciation Permanent
With the passage of the One Big Beautiful Bill Act (OBBBA), 100% bonus depreciation was made permanent for qualified property placed in service after January 19, 2025. This legislative change significantly enhances the value of cost segregation, a proven tax strategy that accelerates depreciation deductions by identifying and reclassifying building...
Potential Pitfalls of Converting Personal Use Property to Investment Use
When converting personal property to investment use, taxpayers must maintain clear documentation of both the original cost and the fair market value at the time of conversion. This documentation is crucial for supporting depreciation deductions and avoiding IRS challenges. In Sherman Derell Smith v. Commissioner, T.C. Memo. 2025-24 (March 24...
Trump Pledges to Restore TCJA Full Bonus Depreciation: What It Means for Building Owners
President Donald Trump signaled a strong commitment to reinstating full bonus depreciation under the Tax Cuts and Jobs Act (TCJA), a provision currently set to phase out by the end of 2026. The reinstatement, according to Trump, would be made retroactively to January 20, 2025. If implemented, this move would...
Maximizing Tax Benefits: Understanding Partial Disposition of Buildings and the Role of Cost Segregation
A partial disposition occurs when a taxpayer disposes of a portion of an asset rather than the entire asset. This can happen during renovations or improvements when parts of the building are replaced or retired. For example, a taxpayer upgrading to energy-efficient LED lighting, installing a new HVAC system, replacing...
Underutilized and Overlooked Tax Strategies for Real Estate Developers
Join our exclusive webinar where Laura Steinbrink from Emerald Built Environments hosts an insightful discussion with Alex Bagne, Jason Puffenbarger, and Noe Montalvo from ICS Tax. Topics include: Federal tax incentives (179D, 45L, Cost Segregation, renewable energy tax credit), utility rebates, opportunity zones. How to layer incentives together to maximize...
Build A Real Estate Portfolio While Minimizing Tax: Cost Segregation and the Short-Term Rental Loophole
In an interview by Arda Bircan from STR Tax Loophole, Alex Bagne, President of ICS, explains how savvy investors combine cost segregation with the short-term rental loophole to minimize income taxes, grow a real estate portfolio, and build generational wealth. He discusses a real-life scenario in which a successful C-level...
How Cost Segregation Can Widen the Short-Term Rental Loophole
The short-term rental loophole allows investors in vacation homes and similar properties to offset wage income with accelerated tax deductions generated by cost segregation studies. The article titled "Expanding the Short-Term Rental Loophole with Cost Segregation," co-written by Alex Bagne, President of ICS, details the mechanics of this beneficial tax...