Tax Logic™ CRE — 2025 Investment Summary

Turning IRS Rules Into Growth Capital™ for Commercial Real Estate

The One Big Beautiful Bill Act (OBBBA), signed in July 2025, permanently reinstated 100% bonus depreciation for qualified property placed in service on or after January 19, 2025. Combined with Cost Segregation, §179D Energy Deductions, and Reusable Wall Systems (GreenZip™), this update delivers stronger after-tax ROI for developers, brokers, and investors.

Table of Contents

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2025 Update — Permanent 100% Bonus Depreciation (OBBBA)

Applies to eligible property placed in service on or after January 19, 2025.
Assets placed in service before that date follow prior phase-down rules (e.g., 40 %).
Eliminates all step-downs — the 80 % phase-out is now obsolete.
Acquisition timing matters: only assets acquired and placed in service after Jan 19 qualify.
Qualified property rules under §168(k) remain unchanged (5-, 7-, and 15-year via Cost Segregation

Example — $10 Million Property (Illustrative)

Assumptions (engineering-based study required):

Purchase Price	$10,000,000
Land Allocation	15% – basis: $8,500,000
Reclassified Short-Life Asset	30% – $2,550,000 bonus-eligible
Remaining 39-Year Basis	$5,950,000 – Year 1 = $152,564

Year 1 Deduction: $2,550,000 (bonus) + $152,564 (regular) = $2,702,564

Tax Bracket	Federal Tax Savings (Approximate)
24%	$648,615
32%	$864,820
37%	$999,948
21% (C-Corp)	$567,539

Example — $25 Million Property (Illustrative)

Purchase Price	$25,000,000
Land Allocation	15% – basis: $21,250,000
Reclassified Short-Life Asset	30% – $6,375,000 bonus-eligible
Remaining 39-Year Basis	$14,875,000 – Year 1 = $381,410

Year 1 Deduction: $6,375,000 (bonus) + $381,410 (regular) = $6,756,410

Tax Bracket	Federal Tax Savings (Approximate)
24%	$1,621,538
32%	$2,162,051
37%	$2,500,871
21% (C-Corp)	$1,418,846

179D Energy Deduction – Quick Screen

Who Qualifies: commercial buildings and major retrofits, “designer” rule applies to gov and non profits.
Eligible Systems: Envelope, HVAC/HW and lighting meeting ASHRAE standards and certification.
Inputs needed: Plans/specs, sq ft, system types, service date and wage/apprenticeship status.
Result: per-sq-ft deduction that stacks with bonus depreciation and cost segregation.

Reusable Walls (GreenZip™) — §1245 Personal Property

Non-load-bearing, demountable partitions and related finishes qualify as §1245 personal property (typically 5-year) and may receive 100 % bonus depreciation when placed in service. Classification is verified in the engineering study.

GreenZip™ uses a tape-only, reusable drywall system (patented) that reduces tear-out waste and supports §1245 classification for accelerated depreciation.

Form 3115 Look-Back & §481(a) Catch-Up

Owners of buildings purchased before 2025 can retroactively claim missed depreciation through a Change in Accounting Method (Form 3115). The §481(a) adjustment provides a one-time catch-up deduction without amending prior returns — often producing hundreds of thousands in immediate cash-flow benefits.

Nicola J. (Nick) Coppola — CRE Tax & Sustainability Strategist
[email protected] • (919) 632-0133 • TaxLogicCRE.com

Tax Logic™ collaborates with CSSI for certified cost-segregation studies. Informational only — not tax advice. All figures illustrative; final results depend on engineering scope and placed-in-service timing.