District of Columbia · Cost segregation
Cost Segregation in District of Columbia
Decoupled from federal bonus depreciation.
District of Columbia has decoupled from federal bonus depreciation. You still take the full federal deduction; District of Columbia spreads the bonus portion over the asset's normal recovery schedule.
District of Columbia at a glance
- Bonus-depreciation conformity
- Decoupled from federal bonus depreciation
- §179 treatment
- Caps §179 expensing at $25,000 (below the federal limit)
- §1250 recapture
- Recaptured as ordinary income at the state level
- Top individual rate
- 10.75%
- State return form
- Form D-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 District of Columbia’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.