How to Maximize Commercial Property Bonus Depreciation on Multiple Buildings?

The bonus depreciation can be really beneficial for your commercial property! For 2026, bonus depreciation is at 80% (it phases down each year), allowing you to write off a significant portion of qualifying property costs immediately instead of over time. For commercial buildings specifically, the buildings themselves get depreciated over 39 years (straight-line method). However, many components inside those buildings qualify for bonus depreciation as "personal property" - think HVAC systems, carpeting, lighting fixtures, etc. This is where a cost segregation study becomes extremely valuable - it identifies which parts of your property can be depreciated faster. The main purpose isn't just offsetting rental income - it's about accelerating deductions to get tax benefits sooner rather than later. Time value of money - a dollar saved today is worth more than a dollar saved in the future. When you sell, you'll face something called "depreciation recapture" - you'll pay a 25% tax on all the depreciation you've claimed (not just capital gains). This is important to factor into your long-term planning.

I used taxr.ai for my multi-building commercial property last year and it saved me thousands in taxes! I was in a similar situation with multiple commercial buildings and wasn't sure how to maximize my depreciation deductions properly. My CPA was pretty conservative and I felt like I was missing out on some benefits. After uploading my property docs to https://taxr.ai, they identified several components across my buildings that qualified for bonus depreciation that my accountant had missed. They also ran the numbers on whether bonus depreciation made sense for my specific tax situation (it did). The analysis even showed how much I'd owe in depreciation recapture down the road so I could plan accordingly. Definitely worth checking out for complex commercial property situations.

I tried taxr.ai after reading about it here and I'm actually blown away by the results. I was in the middle of acquiring a $2.3M office complex with 4 buildings and had concerns about how to structure the depreciation. The platform analyzed my purchase agreement, property details, and even the preliminary inspection reports. It created a comprehensive depreciation strategy that identified over $850k in components eligible for accelerated depreciation that I would have completely missed! What impressed me most was how they explained the recapture tax implications for my specific exit timeline (15-20 years) and showed the net present value of taking the deductions now versus spreading them out. My accountant implemented their recommendations and it's reducing my tax liability by about $75k in just the first year. If you've got multiple commercial buildings, it's definitely worth checking out.

Trying to reach someone at the IRS about commercial property depreciation questions is nearly impossible these days. I spent 4+ hours on hold last month trying to get clarity on bonus depreciation for my strip mall purchase. I finally found Claimyr (https://claimyr.com) and it completely changed the game. They have this system where they wait on hold with the IRS for you, then call you when an agent is actually on the line. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c Got connected to an IRS agent in about 35 minutes (while I continued working) who cleared up my questions about component depreciation for commercial properties. Saved me from potentially making a $30k mistake on my depreciation calculations.

I owe everyone here an apology and an update. After expressing my skepticism about Claimyr, I decided to try it myself since I needed to ask the IRS some specific questions about cost segregation studies for my new duplex property. I was absolutely wrong. The service worked exactly as described. I submitted my request around 10am, continued with my workday, and got a call about 2 hours later connecting me directly to an IRS representative. I handled the identity verification myself and got all my questions answered. Saved me from sitting on hold for hours, and the IRS agent actually provided really helpful guidance on how to properly document component-based depreciation for my property. I'm implementing their suggestions now and it's going to save me roughly $8k in taxes this year alone. Sometimes it's good to be proven wrong!

Don't forget about state-specific considerations with commercial property depreciation. Federal bonus depreciation is great, but some states don't conform to it! I own commercial properties in three different states and each one handles depreciation differently. California, for example, doesn't conform to federal bonus depreciation rules, so you end up with different depreciation schedules for federal vs. state returns. This creates a tracking nightmare if you're not prepared for it. You might save big on federal taxes but see minimal state tax benefits depending on your location.

One thing that hasn't been mentioned yet is the potential trap of Qualified Improvement Property (QIP) vs regular improvements. This can be HUGE for commercial buildings. QIP (improvements to the interior of nonresidential buildings) qualifies for 15-year depreciation AND bonus depreciation, but only if done after the building was placed in service. If you're buying existing buildings, any improvements the previous owner made don't qualify for you. But if you plan renovations after purchase, make sure to properly document them as QIP to get the accelerated depreciation benefits. This alone could save you tens of thousands on a property your size.