One Big Beautiful Bill Allows First Year Deduction for Many Parts of a Golf Course

March 9, 2026March 9, 2026Business, Finance, Investment, TaxesMaggie Tredwell

One Big Beautiful Bill Allows First Year Deduction for Many Parts of a Golf Course

By Cody Heimerdinger, CPA

Director, Keystone Tax Solutions Group

Golf is a very capital-intensive business. From clubhouse renovations to simulator buildouts, cart barns, restaurant upgrades, and parking lot improvements, golf facilities require constant reinvestment to stay competitive. Furthermore, the Hotel that is being planned for Lakeridge Golf Course is budgeted to cost $100,000,000 per various public reports.

But here’s the question most owners don’t ask: Are you maximizing the tax strategy behind those investments?

Tax Planning for Golf Courses and Hotels

Weather you buy or build, in order to take accelerated depreciation on Real Estate, you must perform a Cost Segregation Study. These Studies “segregate” the cost of property between 5, 7, 15 and 39 year depreciable class lives. Specialized software is required to properly value the improvements. With the One Big Beautiful Bill act that was signed into law July 4, 2025, all 5 to 15 year property placed into service after January 19, 2025 are able to be fully expensed! A $100 million hotel will qualify for a first year potential $30 million dollar deduction!

Which Golf Course Improvements Get Bonus Depreciation?

Many golf course owners assume their clubhouse or facilities are simply “39-year property.” That’s only partially true. A cost segregation study identifies portions of a golf facility that may qualify for shorter recovery periods (often 5, 7, or 15 years) including:

Land Improvements (Typically 15-Year Property)

Parking lots and striping
Cart paths
Landscaping and drainage systems
Retaining walls
Fencing and exterior lighting
Concrete sidewalks and curbing

Personal Property (Often 5-Year Property)

Built-in cabinetry and millwork
Retail fixtures in pro shops
Decorative and specialty lighting
Dedicated electrical serving kitchen or simulator equipment
Restaurant and bar equipment connections
Specialty plumbing tied to business-use equipment
Fitness center and spa buildouts

Whether purchased or constructed, a Cost Segregation Study is required to support the allocation to class lives that qualify for bonus depreciation.  

Key Planning Point

Just because you qualify for bonus depreciation doesn’t mean you should take it.

There is currently an affirmative election available to “opt-out” of bonus depreciation, and simply take accelerated depreciation using double declining balance or 150% declining balance.

You might want to consider this option if there is minimal benefit to the write-off. For example, we have certain of our clients that have made significant gifts to charity and are at risk of losing the charitable contribution carryover that expires 5 years after the date of gift.

Also consider if the benefit of the current year’s deduction is worth the additional tax later. Planning is everything in these scenarios.

Great news for our clients is that we do these studies in house!