100% Bonus Depreciation Is Back

[Amber Stout]

Hey BP fam — just popping in with a quick update that could save some of you a lot on taxes this year.

The recently passed (7/5) Big Beautiful Bill has some major wins for real estate investors — including the return of 100% bonus depreciation, in addition to a couple other advantages. 

1. Bonus depreciation = 100% Through 2025
You can now fully write off eligible property in year one — roofs, HVACs, appliances, etc.
Perfect for anyone doing value add or running cost seg studies.

2. Section 179 expensing increased
Landlords furnishing their units (think STR's or furnished rentals) or purchasing equipment can now deduct even more — the cap increased with inflation adjustments.

3. Business interest deduction increased
The formula changed from EBIT to EBITDA — meaning you can now deduct more of your loan interest.
HUGE win if you're using leverage (BRRRR, multifamily, or syndications especially).

If you're buying, renovating, or refinancing this year, make sure your loan and ownership structure set you up to maximize these deductions.

Let's help each other build smarter in 2025. 🚀

[Bonnie Griffin Kaake]

Seems to be a lot of mis-understanding about what the return of 100% Bonus Depreciation really means. The 100% Bonus Depreciation is ONLY available for purchases AFTER 1/19/25 going forward with occupancies AFTER January 19, 2025. 

If a purchase was made or construction started before 1/19/25, the investment applies for whatever Bonus Depreciation was available in the year of occupancy. If the construction started in 2024 and property became occupied in 2025, the Bonus Depreciation is NOT 100%.

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