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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.