2025 Real Estate Investor Tax Survival Guide (What You Should Know)

[William Thompson]

2025 is shaping up to be one of the biggest years for real estate tax planning.

The new tax bill quietly changed a lot — some great news, and a few traps to watch out for.

Here are the big ones investors should know:

• 1. 100% Bonus Depreciation is back — permanently. If you’re renovating or buying, this can mean huge write-offs in year one.
• 2. Section 179 limit jumped to $2.5M. Perfect for active investors upgrading properties or equipment.
• 3. 20% QBI Deduction stays. Pass-through businesses (LLCs, partnerships) still qualify — but structure matters.
• 4. Interest deduction rules improved. Real property trades and businesses keep favorable treatment.
• 5. Opportunity Zones extended. Now easier for rural investors to qualify.
• 6. SALT cap raised to $40K. Big win if you’re investing in high-tax states.

My advice? Don’t wait until filing season to plan.
This is the year to front-load improvements, run cost segs, and review your entity setup.

I’m seeing too many investors miss out on easy deductions just because no one told them what changed.

What’s your biggest tax question going into 2025?
Happy to break it down for anyone here