Category

Real Estate

Type

Real Estate

2025 Limit

Engineering study required; typically 20–40% of property value reclassified to 5/7/15-year property

2026 Limit

Engineering study required; typically 20–40% of property value reclassified to 5/7/15-year property; qualifying shorter-life property may be eligible for 100% bonus depreciation when eligibility rules are met.

IRC Reference

IRC § 168

Eligibility

Commercial and residential rental property owners

Notes / Description

Dramatically front-loads depreciation. Requires a qualified cost segregation study.