{"id":161488,"date":"2025-01-28T14:16:40","date_gmt":"2025-01-28T14:16:40","guid":{"rendered":"https:\/\/namso-gen.co\/blog\/can-you-take-bonus-depreciation-on-land-improvements\/"},"modified":"2025-01-28T14:16:40","modified_gmt":"2025-01-28T14:16:40","slug":"can-you-take-bonus-depreciation-on-land-improvements","status":"publish","type":"post","link":"https:\/\/namso-gen.co\/blog\/can-you-take-bonus-depreciation-on-land-improvements\/","title":{"rendered":"Can you take bonus depreciation on land improvements?"},"content":{"rendered":"

Can you take bonus depreciation on land improvements?<\/p>\n

The answer to this question is a resounding YES. Bonus depreciation allows taxpayers to accelerate the depreciation deduction on qualified property, and it is not limited to just buildings and equipment. Land improvements, such as fences, parking lots, sidewalks, landscaping, and similar improvements, are also eligible for bonus depreciation.<\/p>\n

While land itself is not depreciable, the improvements made on land are considered separate assets with a defined useful life. The Tax Cuts and Jobs Act (TCJA) passed in 2017 expanded the definition of qualified property to include not just new property, but also used property. This means that if you purchase land improvements or have made improvements after September 27, 2017, you may be eligible to take bonus depreciation.<\/p>\n

Bonus depreciation allows taxpayers to deduct up to 100% of the cost of eligible property in the year it is placed in service. This is a significant tax benefit as it provides a substantial upfront deduction, reducing taxable income and potentially resulting in lower tax liabilities.<\/p>\n

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