Are You Talking to Your Clients About the New Bill?

[Brian Teeter]

I own a property management business in Little Rock, Arkansas.  As someone managing properties for multiple owners, I’ve been keeping an eye on the recent federal legislation — the so-called One Big Beautiful Bill — and there are some real opportunities buried in it for current real estate owners. This is certainly not a political post. Agree or disagree with the Bill, its here and we might as well understand how it impacts our business and clients.

While most of the online buzz has focused on BRRRR investors and tax pros, I think we as property managers are in a unique position. Many of our clients may not even realize that this bill could meaningfully impact their cash flow, tax position, and investment strategies — especially if they’ve recently renovated, refinanced, or are considering expanding their portfolio.

Here are the two key provisions worth discussing with your clients:

1. 100% Bonus Depreciation Through 2027
Clients can now depreciate many capital improvements in full during year one — appliances, HVACs, roofing, flooring, etc. This is especially helpful for owners who’ve recently completed big renovations or have capital work planned.

Key distinction:

• If your client is a Real Estate Professional (750+ hours/year and over 50% of work time in real estate), they can often use these losses to offset W-2 or business income.
• If not, they can still use the bonus depreciation — but it will typically only offset passive rental income.
  Still, that’s a big help in reducing tax burdens from cash-flowing rentals.

2. Increased Interest Deductibility (Section 163(j))
The deduction cap for interest payments has jumped from 30% to 40% of adjusted taxable income — a major win for owners with leverage, particularly those using DSCR or hard money loans to scale.

As long as their real estate is held through a business entity (LLC, S-Corp, etc.), this benefit applies — whether they're full-time investors or not.

Why It Matters for Property Managers

This legislation could help your clients:

• Maximize deductions in 2025 and beyond
• Revisit the timing of renovations and capital expenditures
• Strategically use leverage with improved interest deductibility
• Reduce their taxable income — and reinvest savings into more doors

As managers, we can play a key advisory role here — even if it’s just connecting owners with good CPAs who understand the game.

Is anyone here actively talking to clients about these changes?
What’s the response been so far?
Are any of your clients changing how they approach renovations, tax planning, or refinancing strategies based on this?

Curious to hear what others are seeing in their markets.

Let’s trade notes — this feels like one of those “quiet wins” that proactive investors and managers can really capitalize on.