Maximizing Deductions With Bonus Depreciation, Section 179 & More Belk On Business podcast

Maximizing Deductions with Bonus Depreciation, Section 179 & More

1d ago 11:05

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Welcome back to Belk on Business! I’m Josh Belk, and today we’re picking up where we left off with our ongoing series diving into the latest legislative updates that impact your financial strategy and tax planning. If you’re a real estate professional, investor, or business owner, this episode is packed with insights you won’t want to miss.

In this conversation, I unpack key updates around bonus depreciation, Section 179 expensing, and important changes to opportunity zones and interest expense deductions. From cost segregation strategies to navigating new OZ rules, this episode provides the clarity you need to make informed moves in the coming years.

3 Key Takeaways

100% Bonus Depreciation Is Back—and Permanent: Starting in 2025, qualifying 15-year property and equipment can again be fully depreciated in the year it’s placed in service, a big win for real estate pros and business owners.
Section 179 Expansion: The deduction cap has increased to $2.5M, and now includes items like HVAC systems, fire protection, and roofs—if you’re in an active trade or business.
Opportunity Zones Require New Strategy: The OZ program has undergone major changes—new eligibility, stricter reporting, and capital gains-only funding mean it’s more complex but still potentially powerful.

Episode Timeline & Highlights

[0:00] - Introduction

[0:35] - Recap of last week’s episode and transition to today’s topics

[1:08] - Why depreciation matters for real estate professionals and business owners

[2:20] - How the 2025 bonus depreciation changes could benefit your portfolio

[3:09] - Real-life example of using a cost segregation study for maximum write-offs

[4:17] - Expensing new factory and plant builds—and what qualifies

[5:18] - Section 179 updates: new thresholds and expanded eligibility

[6:21] - Passive investors vs. active business owners: who gets to claim what

[7:27] - Why you need to talk to your CPA before diving into opportunity zones

[9:14] - Update on interest expense deduction changes under section 163(j)

Links & Resources

IRS Section 179 Overview: https://www.irs.gov/publications/p946
Cost Segregation Guide: https://www.costsegregationinitiatives.com
Opportunity Zones Overview: https://opportunityzones.hud.gov

If you found this episode helpful, don’t forget to rate, follow, and review Belk on Business. And be sure to share it with your fellow real estate pros or business owners who want to grow smarter with tax strategy. See you next time!

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3 Key Takeaways

100% Bonus Depreciation Is Back—and Permanent: Starting in 2025, qualifying 15-year property and equipment can again be fully depreciated in the year it’s placed in service, a big win for real estate pros and business owners.
Section 179 Expansion: The deduction cap has increased to $2.5M, and now includes items like HVAC systems, fire protection, and roofs—if you’re in an active trade or business.
Opportunity Zones Require New Strategy: The OZ program has undergone major changes—new eligibility, stricter reporting, and capital gains-only funding mean it’s more complex but still potentially powerful.