As reported in our December 2017 publication of Insights, the U.S. Senate proposed shortening the depreciation of long-lived real property from 27.5 & 39-year to 25-years, which was not outlined in the U.S. House of Representatives version of the “Tax Cuts and Jobs Act”. The final version of the Tax Cuts and Jobs Act of 2017 was signed into law on December 22, 2017.
Depreciation of long-lived real property remains at 27.5-years (residential property) and 39-year (non-residential property). Taxpayers can continue to benefit from the accelerated depreciation provided by a cost segregation study.
Table 2 of the December 2017 Insights article presents representative additional tax savings benefit by property type of conducting a cost segregation study for a $10 million investment by property type under the current 27.5 and 39-year depreciation periods.