Bonus depreciation can be a powerful lever in real estate planning, but only when the underlying classifications are defensible and tied to the placed-in-service timeline. For residential rental clients, cost segregation can accelerate depreciation by reclassifying qualifying components into shorter-life property.
RentalWriteOff delivers engineering-style rigor in a cost segregation documentation package, typically in 2 business days, with a streamlined intake requiring about 5 minutes of client time. CPAs can submit through our Partner Portal, partnership programs are available for firms, and audit support is included with every report we deliver.
See our white-label residential cost segregation page for CPA firms for implementation details and partnership structure.
What CPAs are doing when they pair bonus depreciation with cost segregation
From a planning standpoint, the approach works because:
- A cost segregation study reclassifies components into shorter recovery periods (where supported).
- Bonus depreciation may apply to qualifying shorter-life property depending on the year placed in service and applicable tax rules.
- The client’s depreciation profile becomes front-loaded, improving near-term cash flow (when appropriate for the client’s tax situation).
The CPA’s role is to ensure the approach is:
- supported by documentation
- timed correctly (placed-in-service is key)
- aligned with the client’s income profile and long-term goals
RentalWriteOff supports this workflow by providing bonus depreciation applicability analysis as part of the documentation package.
The cornerstone: placed-in-service drives applicability
For bonus depreciation planning, date placed in service is critical. It anchors:
- timing of depreciation
- eligibility planning
- audit defensibility
Current bonus depreciation rules (OBBBA update)
The One Big Beautiful Bill Act (OBBBA), signed July 4, 2025, permanently restored 100% bonus depreciation. The applicable rate is determined by the property's acquisition date (based on binding contract date):
- Acquired after January 19, 2025: 100% bonus depreciation — permanent, no scheduled phase-out
- Acquired under binding contract before January 20, 2025: TCJA phase-down applies:
- 2023 placed-in-service: 80%
- 2024 placed-in-service: 60%
- 2025 placed-in-service: 40%
- 2026 placed-in-service: 20%
- 2027+ placed-in-service: 0%
CPAs should confirm the acquisition (binding contract) date and placed-in-service date for each client, then verify state conformity. IRS Notice 2026-11 provides interim guidance on the new rules.
For residential rentals, “placed in service” generally means the property is ready and available for rent and is held out for rental use (facts and circumstances matter).
RentalWriteOff collects Date Placed in Service as part of the intake and includes bonus depreciation applicability analysis in the final deliverable.
Asset types that often drive accelerated depreciation in residential rentals
While every property differs, residential rentals may include components that can fall into shorter-life categories such as:
- appliances and equipment (especially in furnished rentals)
- certain interior finish components (based on facts and scope)
- site improvements (walkways, fencing, landscaping, exterior lighting)
- specialized electrical/plumbing serving specific assets
CPA takeaway: furnished and renovated properties often have more opportunity, and supporting documents materially improve defensibility.
Timing scenarios CPAs see most often
Scenario 1: Newly acquired rental
A study is often most impactful when paired with acquisition-year planning and placed-in-service timing.
Scenario 2: Renovated rental
Renovations increase basis and can expand shorter-life components. Receipts and invoices can strengthen classification support.
Scenario 3: Late study on an already-owned property
A study can still provide benefit even after depreciation has started. If adjustments are needed, the CPA may consider Form 3115 for catch-up treatment where appropriate.
Important note: Form 3115 support is available as an add-on. CPAs continue to control final filing strategy and elections.
How RentalWriteOff supports CPA bonus depreciation planning
RentalWriteOff provides bonus depreciation applicability analysis so CPAs can:
- assess planning value quickly
- incorporate depreciation changes into projections
- communicate results clearly to clients
And because the turnaround is typically 2 business days with a lightweight intake, CPAs can recommend this service without creating bottlenecks in busy season.
Audit support is included with every report we deliver, providing additional confidence if questions arise later.
FAQs for CPAs
Does RentalWriteOff determine whether bonus depreciation applies?
RentalWriteOff provides bonus depreciation applicability analysis as part of the documentation package based on placed-in-service information and classification outputs. The CPA controls elections and the final filing treatment.
Does RentalWriteOff file Form 3115?
Form 3115 support is available as an add-on.
Is audit support included?
Yes. Audit support is included with every report we deliver.
Closing
If you’re looking to integrate cost segregation into planning for residential rental clients without adding workload, RentalWriteOff provides engineering-style rigor in a documentation-first package with a fast turnaround, streamlined delivery, bonus depreciation applicability analysis, and audit support included.
Submit through the Partner Portal with a streamlined intake. Reports typically delivered in 2 business days. Audit support included. See our CPA platform page for partnership details and the full workflow overview.