Limitations to the Bonus Depreciation Calculator
The bonus depreciation calculator will provide a good preliminary estimate of the extra depreciation for your building. However, there are a variety of factors that need to be considered and analyzed by a professional. Consider the following:
- Level of land improvements based on the land to building ratio
- Ability to differentiate between allowable short-life assets versus non-qualifying assets
- Effective age of short-life components
- Special use assets that may qualify as short life assets
- Specialized fixtures and improvements
For these reasons, the absolutely best results (maximum bonus depreciation) can be obtained based on a site inspection by a valuation expert.
Conclusion
While the bonus depreciation calculator can’t provide an exact amount of additional depreciation, it provides excellent guidance on whether cost segregation makes sense for you.