Bonus depreciation is just a special part of the US tax code.It allows you to take accelerated depreciation on portions of your property depending on when an asset is put into service.At the time of this writing, you can write off a huge portion (60% in 2024) of many qualified components that have a useful lifespan of 15 years or less.That means a certain percentage of things like landscaping, sidewalks, latches, appliances, fences, certain flooring, etc is depreciable in year 1.The bonus depreciation rate percentage changes yearly depending on the administration and the tax code.For years 2015 through 2017 first-year depreciation for all the items on a 15-year schedule or less was set to 50%.It was scheduled to go down to 40% in 2018 and 30% in 2019 and then 0% in 2020.But then Trump got elected, and he enacted the Tax Cuts and Jobs Act.That moved the bonus depreciation percentage to 100% from 2017 to 2022.In 2023 it went down to 80% and it’s currently at 60%.Depending on who gets elected again, 100% may be back on the table.Only time will tell.We know that the US government wants to incentivize more development and ownership of RE.They want Americans to continue to build and maintain our physical world.That’s why real estate is one of the most tax-advantaged assets in the US.Depreciation and bonus depreciation for RE are very positive and will likely continue in the years ahead.

Read 10 of these before winter break...Buffet, Trump, Bloomberg, Craig Hall, Trammell Crow, Jerry Jones, Michael Dell, Bill Gates, Bezos, Sam Zell, Li Ka-shing, Chuck Feeney, Ong Beng Seng....

Did those of us that missed the opportunity after 2008, and most of the appreciation and interest rates of the Trump era just miss the train? 

Federal Debt: Rose 39% during Trump, 25% during Biden. 

Appreciation, and this quote by David Greene really stood out:"Everyone I have ever talked to has always said: Location, Location, Location... buy in the right area, with the right schools... the appreciation you get will trump any bit of cashflow that you thought was important, and you won't have the headaches."

I know here in Illinois the taxes trump Mortgages.

I understand how and why you would defer capital gains forever with a 1031, but I've heard conflicting reports about whether or not depreciation recapture gets moved forward and deferred in a 1031, particularly if you did the "Trump era" 100% depreciation in one year move. 

btw anyone else enjoying Trumps debate:).    

@Margot Weatherford current NOI trumps potential every day, and is the best indicator of where the market is for the asset.

A strong location with solid tenant mix, with strong market dynamics will trump a higher cap rate opportunity in a secondary market over the long-run 100% of the time.