Tax-Free Growth + Bonus Depreciation? It’s Real.

[Paul Ko]

We’re presenting a rare investment opportunity that combines the power of Bonus Depreciation with the long-term advantages of an Opportunity Zone—resulting in substantial, tax-advantaged returns. Imagine this scenario: ✅ You invest in a brand-new townhome in a qualified Opportunity Zone. ✅ You put just 25% down. ✅ You start earning passive cash flow from day one. ✅ And in year one alone, you receive $40K+ in bonus depreciation—a powerful offset against income. Now extend the horizon 10 years… The property appreciates, rents increase, and upon exit, 100% of the capital gains are tax-free, thanks to OZ benefits. This isn’t theory—it’s a structure we have in place today. We’ve layered: ✔️ 100% Bonus Depreciation (fully restored in 2025) ✔️ Cost Segregation ✔️ Opportunity Zone Tax Deferral & Exclusion ✔️ New Construction with Immediate Rental Income ✔️ Turnkey Units with 12-Month Leases in Place Year 1 cash-on-cash returns are significantly boosted by the depreciation shield, and the 10-year net after-tax returns outperform most traditional real estate strategies—especially for investors with capital gains or high taxable income. If you’d like to review the investor pro forma or explore how this structure might work for you or your clients, I’d be happy to schedule a walkthrough.