Timber Ridge at Sea Ranch
$1.23M in, split into land, building, and remodel
The property was bought for $837,500 and remodeled for $388,424, $1,225,924 in all. Land never depreciates, so it's carved out first; everything else becomes depreciable basis the study then accelerates.
Where the $1.23M went
A remodel does two things at once
Placed in service Jun 15, 2024, this study applies a 60% bonus rate. A remodel triggers two deductions in the same year: the old components torn out are written off, and the new short-life improvements take 60% bonus.
Partial asset disposition
60% bonus on short-life
What the engine found
The deterministic engine separated the $849,049 depreciable basis into IRS recovery classes, then the engineered review confirmed every component against the source documents.
Component allocation
Year one, in dollars
| Accelerated depreciation | $194,286 |
| Partial-asset disposition write-off | $317,831 |
| Total year-one deduction | $512,117 |
| Straight-line without a study | ~$21,770/yr |
Depreciation by year
| Year 1 | $512,117 |
| Year 2 | $35,666 |
| Year 3 | $24,836 |
| Year 4 | $18,246 |
| Year 5 | $17,991 |
| Year 6 | $13,027 |
| Year 7 | $8,186 |
| Year 8 | $8,186 |
| Year 9 | $8,189 |
| Year 10 | $8,186 |
| Year 11 | $8,189 |
| Year 12 | $8,186 |
| Year 13 | $8,189 |
| Year 14 | $8,186 |
| Year 15 | $8,189 |
| Year 16 | $7,211 |
| Year 17 | $6,236 |
| Year 18 | $6,236 |
| Year 19 | $6,236 |
| Year 20 | $6,236 |
| Year 21 | $6,236 |
| Year 22 | $6,235 |
| Year 23 | $6,235 |
| Year 24 | $6,235 |
| Year 25 | $6,235 |
| Year 26 | $6,235 |
| Year 27 | $6,235 |
| Year 28 | $6,235 |
| Year 29 | $6,235 |
| Year 30 | $6,235 |
| Year 31 | $6,235 |
| Year 32 | $6,235 |
| Year 33 | $6,235 |
| Year 34 | $6,235 |
| Year 35 | $6,235 |
| Year 36 | $6,235 |
| Year 37 | $6,235 |
| Year 38 | $6,235 |
| Year 39 | $6,235 |
| Year 40 | $2,858 |
What each state does with this deduction
Each state this study touches, classified by how it treats the federal year-one deduction.
Lifetime difference: $0. Timing only, recovered in later years.
CA defers up to $145,698 of the deduction, then returns it over the following years, reaching $0 by year 16. The lifetime deduction is the same; only the timing differs.
You still get the federal deduction now. California taxable income is $145,698 higher than federal in year one, but that amount is deducted in later years.
Use the federal schedule for the federal return and a California recomputation schedule for the CA return.
Schedule: CA FTB 3885A