Alabama · Cost segregation
Cost Segregation in Alabama
Conforms to federal bonus depreciation.
Alabama conforms to federal bonus depreciation — you get the accelerated first-year benefit at both the federal and Alabama level.
Alabama at a glance
- Bonus-depreciation conformity
- Conforms to federal bonus depreciation
- §179 treatment
- Conforms to the full federal §179 expensing limit
- §1250 recapture
- Follows federal recapture rules
- Top individual rate
- 5%
- State return form
- Form 40
How cost segregation works
Cost segregation reclassifies parts of a building into shorter recovery classes (5-, 7-, and 15-year property) instead of depreciating everything over 27.5 or 39 years. That front-loads your deductions — and federal can let you write off much of the reclassified basis in year one. How much of that benefit also flows through at the state level depends on Alabama’s conformity rules above.
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CostSegLogic is a software platform, not a CPA firm or law firm. Estimates and reports are informational only and are not tax, legal, or accounting advice. Consult a qualified tax advisor before filing.