YOU’LL NEED A SHARP TAX PROFESSIONAL TO NAVIGATE THE RULES.
WHY THIS MATTERS FOR YOU
For independent landlords and multifamily investors, 100% bonus depreciation is like finding a $20 bill in your rental property’s couch, except it could be worth thousands. A cost segregation study might reveal that 20-30% of your property’s cost qualifies for immediate write-offs, slashing your taxable income. For example, on a $500,000 property, that could mean $100,000-$150,000 in deductions in year one, assuming you qualify. Pair this with REPS (Real Estate Professional Status) or the “Short Term Rental Loophole,” and you’re potentially looking at massive tax savings to reinvest in your portfolio.
THE CATCH (THERE’S ALWAYS ONE)
This isn’t a free for all. You’ll need a sharp tax professional to navigate the rules, especially around cost segregation and PAL (passive activity loss) limitations. And don’t fall for clickbait promising loopholes that don’t exist—the IRS has seen it all. If you’re acquiring properties in 2025, act fast after January 19, but make sure your contracts are ironclad.
FINAL THOUGHTS
The return of 100% bonus depreciation is a big win for real estate investors, but it’s not a “set it and forget it” deal. Get a cost segregation study, confirm your REP or STR status, and double-check your acquisition dates. With a little planning, you can turn this tax break into a powerful tool to grow your wealth. Talk to your CPA, dive into the IRS guidelines, and start strategizing for 2025. Your portfolio will thank you.
YONAH WEISS Business Director Madison SPECS (732)298-9002 yweiss@madisonspecs.com Connect on LinkedIn Connect on Instagram
Yonah is a powerhouse with property owners’ tax savings. As Business Director at Madison SPECS, a national Cost Segregation leader, he has assisted clients in saving over a billion dollars on taxes through cost segregation. He has a background in teaching and a passion for real estate and helping others. He’s a real estate investor and host of the top podcast Weiss Advice.
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