Winning With Data Wise - Cost Segregation Experts & Unlock Massive Tax Savings: How Cost Segregation + 100% Bonus Depreciation Can Slash Your 2025 Tax Bill

Bob Montes
Jul 4, 2025
2 min read

Intro: Real Estate Tax Strategy Just Got Better in 2025

Own commercial real estate or residential rental property?

Thanks to the 2025 tax reform, 100% bonus depreciation is now permanent, giving investors, syndicators, and property owners one of the most powerful tax strategies in decades.

With cost segregation, you can unlock massive deductions by accelerating depreciation on components of your building.

Pro Tip: Many investors are saving $100K+ in year-one deductions by combining cost seg + bonus depreciation. Don’t miss out.

What Changed in 2025? (Quick Recap)

The One Big Beautiful Bill Act (OBBBA) was passed in July 2025 and includes a huge win for real estate owners:

100% Bonus Depreciation is now permanent
Applies to short-life property identified via cost segregation studies
Section 179 expensing limit increased to $2.5M
Works for commercial, residential rental, short-term rental, and hospitality properties

What Is Cost Segregation? (And Why It Matters)

Cost segregation by Data Wise is an engineering-based tax method that breaks your building into faster-depreciating categories like:

Carpeting & flooring
Electrical and plumbing systems
Landscaping and paving
Appliances and fixtures

Instead of depreciating your entire property over 27.5 or 39 years at only 3.5 or 2.5% a year, a cost seg study reclassifies ~20–35%+ of your building into 5-, 7-, or 15-year categories, which are now eligible for immediate 100% bonus depreciation.

Step-by-Step: The Data Wise Cost Segregation Process

How cost segregation works for commercial and rental property owners in 2025

1. Property Analysis

Gather property address, purchase price, and in-service date.

2. Engineering Study

Our team performs a detailed site inspection + review of blueprints and assets.

3. Asset Reclassification

Short-life property (5/7/15 year) is broken out from 27.5 or 39-year basis.

4. Bonus Depreciation Applied

100% of eligible short-life items deducted immediately under new law.

5. Tax Savings Delivered

Share the study with your CPA. See your tax burden drop dramatically.

Tax Savings Ahead with Data Wise Performed Cost Seg Studies

Real 2025 Tax Savings Scenarios (Updated for New Law)

Property Type	Cost Seg %	Deduction	Est. Tax Savings (37%)
SFH Rental ($500K)	24%	$120K	$44,400
12-Unit MF ($3.5M)	28%	$980K	$362,600
STR ($750K)	25%	$187.5K	$69,375
100-Unit MF ($12M)	30%	$2.95M	$1.09M
Extended-Stay Hotel ($18M)	35%	$5.04M	$1.86M
Mixed-Use (Production)	32%	$9.25M	$2.3M