Bonus depreciation is (probably) returning

[Noah Laker]

What's up BP, I'm a local broker and investor based in Sacramento and I manage about 100 Airbnb properties. Just wanted to throw this out here in case you guys haven't heard -- the House Ways and Means Committee just released their tax proposal and, as we'd hoped, they are fighting to bring back 100% bonus depreciation -- potentially retroactively for 2025!

This is big news for investors. Probably half of my sales are for high W2 earners looking to take advantage of depreciation via STR. We can expect this to be passed into law possibly as soon as Memorial Day. So, to summarize: Woohoo! Happy tax savings!

[Stanley Odum]

We are all in suspense on this one. Bonus depreciation is currently 40% for properties purchased or newly constructed and placed into service in 2025. We still have clients applying 100%, 80%, and/or 60% bonus depreciation retroactively through performing cost segregation studies on previously purchased or constructed properties.