Michigan · Cost segregation
Cost Segregation in Michigan
Partial state bonus depreciation.
Michigan allows partial bonus depreciation at the state level; the remainder follows the state's standard recovery schedule. Your full federal benefit still applies.
Michigan at a glance
- Bonus-depreciation conformity
- Partial state bonus depreciation
- §179 treatment
- Conforms to the full federal §179 expensing limit
- §1250 recapture
- Recaptured as ordinary income at the state level
- Top individual rate
- 4.25%
- State return form
- Form MI-1040
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 Michigan’s conformity rules above.
Free estimate
Run a free estimate for your Michigan property
See your federal and Michigan depreciation picture in minutes — no account fee, no obligation.
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.