Amazing Tax Write-Offs You Can Benefit From
Act Now for the 2025 Tax Deadline!
If you purchased one of our custom structures—whether it is a barndominium, workshop, hay barm, equipment shed, roof and gable structure or farm building—for your business or farm operations, we have vital news about a major tax opportunity that you may be able to benefit from.
A significant tax change, known as the “One Big Beautiful Bill Act” (OBBBA), was signed into law in July 2025, retroactively reinstating a massive tax incentive for the entire year of 2025. This change could allow you to deduct 100% of the eligible cost of your new building in the same year it is put into service, as long as it meets the important deadline.
To capture this benefit for your upcoming 2025 tax filing, timing is everything. Continue reading to learn how to earn this tax benefit.
The Critical Deadline: Your Building Must Be “In Service” by December 31, 2025
o claim the 100% deduction for the 2025 tax year, your qualified structure must be both acquired and placed in service by the end of the calendar year.
- Acquisition Date: The property generally must have been acquired (or construction begun) after January 19, 2025, to qualify for the full 100% deduction.
- “Placed in Service” Date: Your building must be completed and ready and available for its specifically assigned function (i.e., ready for use as a barn, workshop, or commercial space) on or before December 31, 2025.
If your structure is currently under construction, work with your builder and your tax advisor to confirm it will meet this year-end deadline. We here at Troyer Post Buildings are dedicated to making sure our clients are knowledgeable about anything that may benefit them when purchasing one of our structures.
The Benefit: 100% Bonus Depreciation is Back
For years, the Bonus Depreciation rate had been phasing out (dropping to 60% in 2024 and scheduled to be 40% for the start of 2025). The OBBBA reverses this phase-out and permanently sets the rate at 100% for eligible property placed in service after January 19, 2025, through tax year 2029.
What This Means for Your Structure:
- Immediate Full Write-Off: Instead of deducting your property’s cost over two or three decades, you may be able to expense 100% of the eligible cost in your 2025 tax filing.
- Enhanced Cash Flow: This immediate, substantial deduction can significantly reduce your business’s taxable income, improving your cash flow for the year.
- Section 179 Expansion: In addition to 100% Bonus Depreciation, the Section 179 deduction limit has been significantly increased for 2025, offering even more flexibility for medium-sized businesses to write off property immediately.
Your Next Step is Crucial: Consult Your Tax Professional
Tax benefits like Bonus Depreciation and Section 179 are highly complex and depend entirely on your unique financial situation, income level, and how your structure is used.
The eligibility of a barndominium or farm building often requires a Cost Segregation Study to properly identify and accelerate the depreciation on shorter-life components (like electrical, plumbing, and specific interior improvements) that qualify for the full 100% deduction.
To maximize this significant tax opportunity, please contact your CPA or tax professional immediately. Share your acquisition date and construction timeline to ensure your new structure is properly categorized and in service before the December 31, 2025 deadline.
Sources and Further Reading
For more information on the legislative changes and tax rules, please consult the following resources: