MAKES PROPERTY IMPROVEMENTS DEDUCTIBLE
OPENS NEW REPS PATH TO OFFSET HIGH INCOME
MOVE FAST OR MISS OUT
One of the most immediate and powerful impacts of the One Big Beautiful Bill is the return of 100% bonus depreciation and it’s a game changer for anyone in real estate, property management, or investing. Owners can now fully deduct the cost of eligible improvements, such as appliances, HVAC, roofing, or flooring, in year one, instead of spreading it over decades. This dramatically improves after-tax cash flow, making it easier to reinvest, upgrade units, or scale portfolios. Whether you’re a landlord, flipper, or syndicator, this provision alone can shift your entire investment strategy in 2025.
The Big Beautiful Bill is expected to drive a greater number of high-earning married couples to strategically pursue Real Estate Professional Status (REPS). Households with a high-income professional can benefit significantly when one spouse qualifies as a REPS, because it allows real estate losses to offset ordinary wages or business income. By combining 100 percent bonus depreciation with a cost segregation study, owners can create large paper losses in the first year and apply them against active income. Qualifying for REPS and accelerating depreciation turns real estate investments into a powerful tax-saving tool and increases capacity for future acquisitions.
Act now to maximize your 2025 tax benefits with the Big Beautiful Bill. Here’s why: • Competitive Market & Shrinking Inventory: Multifamily assets are in high demand. Waiting could mean higher purchase prices and fewer opportunities to apply these lucrative tax strategies. • IRS Scrutiny is Intensifying: The IRS has ramped up audits around depreciation claims and cost segregation. Early action with expert guidance reduces risk and ensures compliance. • Key Deadlines and Filing Windows: Tax planning windows close quickly. Don’t let documentation or cost segregation studies delay your ability to claim full benefits this tax year.
REPS ALLOWS REAL ESTATE LOSSES TO OFFSET ORDINARY WAGES OR BUSINESS INCOME.
FULLY DEDUCT THE COST OF ELIGIBLE IMPROVEMENTS.
TAX PLANNING WINDOWS CLOSE QUICKLY.
Joshua Christensen Qualifying Broker R1 Commercial Realty Connect with Joshua
Kaylee McMahon Investor and Founder The Apartment Queen Connect with Kaylee
Brian Tulibaski Commercial Realtor Horizon Real Estate Group Connect with Brian
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