Real Estate Investing & the “Big Beautiful Bill Act”

[Matthew Schumacher]

Hey fellow investors,

I’ve been following the early chatter around the proposed Big Beautiful Bill Act—and while details are still emerging, it’s clear that this could have a major impact on real estate investing, especially in how we structure deals, manage tax strategies, and approach asset holding in the coming years.

Here are a few questions I’ve been mulling over:

• Depreciation changes? Could this act reshape how we take depreciation or even limit bonus depreciation benefits that many of us rely on?

• LLC and S-Corp structures: Will entity taxation or flow-through treatment come under new scrutiny?

• Cost segregation studies: If incentives tighten, will these become less favorable—or even more critical to do early?

• Capital gains treatment: Is the Act going to redefine short vs. long-term horizons, or increase rates?

If you're holding multiple properties, using leverage, or actively involved in developments or syndications, these shifts could really move the needle.

I am curious how others are planning for this. Are you making moves now in anticipation of possible tax code revisions? Holding off on acquisitions? Re-structuring your entities? Or just waiting for more clarity?

Would love to hear how you're thinking about it—whether you're a seasoned investor, a CPA, or someone just getting started in the space.

[Kristen Ambrose]

Great breakdown. As a CPA and investor, I have been thinking through many of the same questions with my clients.

A few things I am keeping a close eye on:

• Bonus depreciation. If it phases out faster or gets limited, modeling ROI on flips and BRRRRs becomes more challenging. Planning ahead for capital expenses is even more important.
• Entity structure. If pass-through benefits change, it could shift the balance between S-Corps and LLCs for active investors. We have already had to rethink how cash flows between entities.
• Cost segregation studies. I actually think these might become more urgent to complete now while the current rules still apply. Waiting could mean leaving value on the table.

I am encouraging investors to run a few “what if” models now instead of waiting, especially if they are scaling, taking on new debt, or holding assets long term.

Curious to hear how others are planning around this. Has anyone started adjusting strategy yet?