Duplex
CSSI case study
- Purchase price (less land)
- $406,786
- Placed in service
- Oct. 2021
- Tax year applied
- 2025
- Bonus depreciation
- 100%
- Increased deduction
- $91,213
- Tax rate
- 37%
- First-year tax savings
- $33,749
Look-back studies
Bought years ago? The missed depreciation is still yours.
A look-back study catches up every dollar you could have claimed since the property went into service — on this year’s return, with no amended returns.
- One adjustment, this yearThe catch-up is taken as a single §481(a) adjustment through Form 3115, an automatic change in accounting method.
- No amended returnsPrior years stay as filed. That is the point of Form 3115.
- Older properties still qualifyProperties placed in service well over a decade ago are routinely studied. The real test is whether the remaining basis justifies the fee.
What if I’m planning to sell soon?
Then timing matters and is worth modelling first. Recapture at sale changes the math. Bring your timeline to the call and you’ll get a straight answer on whether it pencils out.