What property types are good candidates for “bonus depreciation?”
I am new to the NNN investing side. I had a client ask me this and wasn't sure the answer. Thanks!
[{"id": "ir9s012", "text": "car wash's have MACRS, you can depreciate the equipment in year 1.", "replies": [{"id": "irc0w59", "text": "What about oil change places like Jiffy lube or Take 5?", "replies": [], "depth": 2}, {"id": "irctces", "text": "There's actually a tax provision mentioning car washes by name they're terrible candidates for cost Segregation studies", "replies": [], "depth": 2}], "depth": 1}, {"id": "iradnmq", "text": "Some  newer convenience stores with gas stations depending on square footage and value of fuel sales.", "replies": [{"id": "irc10wz", "text": "What about oil change places like Jiffy lube or Take 5?", "replies": [{"id": "irc1m36", "text": "Haven't heard that one. Just car washes and 2017 and newer gas stations getting accelerated depreciation schedules (15 years) and 100% depreciation year 1. Bigger bonus to the gas stations as the building gets the accelerated and bonus depreciation as well as the gas related improvements/equipment. Check with a CPA as there are a lot of rules.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "irb3d5o", "text": "Not NNN, but Trailer parks. The mobile homes are depreciable on a 5 year schedule, so 100%.", "replies": [], "depth": 1}, {"id": "irb8uk1", "text": "Basically only personal property has depreciation schedules short enough to qualify for bonus depreciation. So anything where a lot of equipment is included.", "replies": [], "depth": 1}, {"id": "irbak02", "text": "Not NNN but multifamily and self-storage.", "replies": [], "depth": 1}, {"id": "irctjex", "text": "Except for car washes anyone who owns any type of commercial or residential rentals keeping them for three or more years is typically a good candidate for cost segregation \n\nHere is one of my clients\n\nOffice/Warehouse, Fremont, CA\nPurchased 06/2021, appx 28,000 sf\nPP $6,250,000 (of which $3,750,000 is total depreciable basis)\nOwner's 2021 depreciation expense without cost segregation - $48,077\nOwner's 2020 depreciable expense with cost segregation - $1,339,030 \n(accelerated amount was 35 %)", "replies": [], "depth": 1}, {"id": "irpv3pp", "text": "Short term rentals, like AirBNB properties, can be bonus depreciated and you don\u2019t need to have REPS to use the loses against W2 income.", "replies": [], "depth": 1}]