Tax Update: Good News for RE Investors!

[Julio Gonzalez]

The Tax Relief for American Families and Workers Act of 2024 has been agreed to by Congress.

(It’s not law yet and still needs to be signed.)

Here are a few key provisions you should know about:

1. Extension of 100 Percent Bonus Depreciation.

The provision extends 100-percent bonus depreciation for qualified property placed in service after December 31, 2022, and before January 1, 2026.

2. Full Expensing for Research and Development Tax Credits

The provision brings back full expensing for R&D Tax Credits. A lot more business owners qualify for this credit than they realize. Be sure to talk to your CPA about your work and see if there are ways you might qualify for this credit.
3. Increase in Limitations on Expensing of Depreciable Business Assets.

Per Section 179, taxpayers can currently expense up to $1 million of qualifying business property, decreasing if the property's cost exceeds $2.5 million, with these limits adjusted for inflation.

The new provision increases these limits to $1.29 million and $3.22 million, respectively, for property placed in service in taxable years beginning after December 31, 2023. The $1.29 million and $3.22 million amounts are adjusted for inflation for taxable years beginning after 2024.

There are other great provisions in this act to be aware of as well.

Real estate investors, talk with your CPA about these updates! I'll also be keeping you updated on here as well. If you're curious, here's a link to the act.