Big Beautiful Bill - Bonus Depreciation

[Andrew McGuire]

With the House approving the GOP Big Beautiful Bill I am hearing rumblings about Bonus Depreciation coming back. 

I have several friends/clients that have taken advantage of the STR "loophole" that began to Phase out during the Biden administration, so this is music to my ears if true. Its been a flat market for over three years with stagnant rents, at the same time taxes, insurance and everything else real estate investing has become more expensive in my city (Phoenix). All of this in mind has made real estate investing in SFH and 1-4U worth it less every year IMO, so giving investors/buyers good news and something to look forward to much worth it. Hoping it gets through the Senate.

Interested to hear what you are hearing and if it you think it will make an impact on investing. 

[Stephen Nelson]

Quote from @Andrew McGuire:

With the House approving the GOP Big Beautiful Bill I am hearing rumblings about Bonus Depreciation coming back. 

I have several friends/clients that have taken advantage of the STR "loophole" that began to Phase out during the Biden administration, so this is music to my ears if true. Its been a flat market for over three years with stagnant rents, at the same time taxes, insurance and everything else real estate investing has become more expensive in my city (Phoenix). All of this in mind has made real estate investing in SFH and 1-4U worth it less every year IMO, so giving investors/buyers good news and something to look forward to much worth it. Hoping it gets through the Senate.

Interested to hear what you are hearing and if it you think it will make an impact on investing. 

Just to clarify something, I don't think you want to say or think that short-term rentals were phased out during the Biden administration. They still work really well even without bonus depreciation. (They do work better with bonus depreciation.)

What a short-term-rental does is let you avoid treating your activity as a rental. That means you don't worry about REPS. And all you (or maybe you and spouse) need to do is materially participate. You can with clever upfront planning get materially participation fairly easily.