100% Bonus Depreciation Is Back: What It Means for Investors

Congress has passed the One Big Beautiful Bill Act (OBBBA), a sweeping piece of legislation that permanently reinstates 100% bonus depreciation for qualifying assets placed in service on or after January 19, 2025.

Love the bill or hate it, here’s what the new law means and the potential tax benefits it could unlock for investors.

What Is Bonus Depreciation?
Bonus depreciation allows investors to immediately deduct a large portion of an eligible property’s depreciable basis in the year it's placed in service. Instead of spreading depreciation over many years, this accelerated approach front-loads tax deductions, offering a compelling tool for investors seeking tax efficiency and improved after-tax returns.

What the New Law Means for Investors
The reinstatement of 100% bonus depreciation presents timely opportunities for those investing in capital-intensive sectors, such as convenience retail and motor fuel real estate.

Key Takeaways:

• Full First-Year Deduction: Qualifying property placed in service on or after Jan. 19, 2025, is eligible for 100% bonus depreciation.
• Improved Tax Flexibility: Investors may be able to use depreciation to offset passive income or gains, depending on individual tax situations.
• Strong Alignment with Essential Retail: Many properties in the convenience store and gas station sector qualify due to ongoing capital expenditures and upgrades.

How This Impacts Investors in InCommercial Motor Fuel Fund IV, LLC
InCommercial Motor Fuel Fund IV, LLC (MFF IV) is built to take advantage of this renewed policy. By combining income-producing real estate with the tax benefits of bonus depreciation, the fund seeks to deliver a compelling blend of yield, tax efficiency, and long-term value.

MFF IV Investment Highlights:

• Targeted 12% IRR over a 3–5 year hold period
• Quarterly income distributions, beginning at 5% in 2026
• 2.2:1 passive loss potential using Leveraged Bonus Depreciation, a $100,000 investment may generate $220,000 in year-one passive losses*
• Carryforward eligible: Unused losses may offset future passive income
• 5% Bonus Shares offered for investments made by Sept. 15, 2025
• Regulation D, Rule 506(c) offering type, for accredited investors

Simply put: Investors now have the choice, pay taxes to the IRS with no upside, or put capital to work in a real asset strategy with the potential to generate both income and meaningful tax advantages.

One Size Doesn’t Fit All
While bonus depreciation offers significant benefits, it’s important to understand that individual tax outcomes vary. The applicability of these benefits depends on factors like your income type, passive activity status, and broader financial picture.

Always consult a qualified CPA or tax advisor to understand how this law may impact your situation.

Learn More & Take Action
Download: What Is Bonus Depreciation >
Access: Tax-Efficient Investing Whitepaper >
Register: Upcoming Webinar – Learn How to Put 100% Bonus Depreciation to Work >

About InCommercial
InCommercial is a real estate investment firm focused on net-leased, necessity-based assets within the convenience retail and motor fuel sectors. With over 25 years of experience and a vertically integrated gas station and convenience store operating platform, InCommercial aims to deliver income-oriented and tax-advantaged strategies.

Disclosures:

• InCommercial does not provide tax or legal advice. Please consult your financial or tax advisor for personalized guidance.
• For informational purposes only and intended solely for accredited investors.
• There is no guarantee that these investment objectives will be met. Investing involves risk, including loss of principal.
• The InCommercial Motor Fuel Fund IV, LLC early investor incentive is dilutive to the economics of investors who do not receive the incentive.
• Review all offering materials carefully before considering an investment.
• Securities offered through JCC Capital Markets, LLC | Member FINRA.