100% Bonus Depreciation Could Return This Year: 2025 Tax Update

On The Market

BiggerPockets

News, Investing, Business, Education

4.8 • 820 Ratings

🗓️ 20 March 2025

⏱️ 29 minutes

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Summary

Real estate is one of the most tax-advantaged investments in the country. With bonus depreciation, opportunity zone investing, 1031 exchanges, and more, investing in real estate is not only the best way to build wealth—it’s the key to tax-free (or deferred) wealth. So, with a Republican-controlled House and Senate, will new tax proposals favoring real estate investments pass? We’ve got some news that could make 2025 a “game-changer” year for real estate investors. CPA Brandon Hall joins us to break it down. With numerous proposals floated to restore 100% bonus depreciation, extend opportunity zone investments, and eliminate taxes on tips, overtime, and Social Security, 2025’s tax laws could look very different if these changes pass. Plus, there’s one huge real estate tax write-off you’re (probably) not taking advantage of. Brandon shares how investors can write off even more during rehabs and renovations, using a specific tax deduction most investors have never heard of. Find investor-friendly tax and financial experts with BiggerPockets Tax & Financial Services Finder! In This Episode We Cover 100% bonus depreciation—is it coming back, and when could it go into effect? The most commonly missed real estate tax write-off you MUST know about Tax-free income sources and which types of income could dodge Uncle Sam’s grip Opportunity zone updates and whether this tax-deferred investment will be renewed Still doing your taxes? Tell your CPA this BEFORE you file And So Much More! Links from the Show Join the Future of Real Estate Investing with Fundrise Join BiggerPockets for FREE Sign Up for the On the Market Newsletter Find Investor-friendly Tax and Financial Experts Dave's BiggerPockets Profile What Is Bonus Depreciation And How Does It Work? Brandon's BiggerPockets Profile Work with Brandon’s Team Top 2025 Tax Strategies For Real Estate Investors Buy “The Book on Tax Strategies for the Savvy Real Estate Investor” Jump to topic: (00:00) - Intro (01:14) - Bonus Depreciation Update (08:53) - A Massive Missed Deduction (12:54) - Tell Your CPA This (14:29) - Tax Cuts Get Extended? (18:58) - New Tax Proposals (20:41) - Renewing Opportunity Zones (23:04) - When Bonus Depreciation Could Return Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/on-the-market-305 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected]. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Hey, everyone, I'm Dave Meyer.
0:06.8	Welcome back to On the Market.
0:08.9	The year 2025 is shaping up to be a potential tax game changer for real estate investors
0:14.5	with the potential return of 100% bonus depreciation and a range of new opportunities.
0:22.9	Today, we're breaking down some potential changes to popular tax strategies and the new opportunities that could pass Congress in
0:28.6	the coming months. Joining me on today's episode is Brandon Hall of Hall CPA. He's a real estate
0:34.7	tax expert who's here to guide us through it all.
0:41.7	Stick around because these moves could redefine your investing game this year.
0:42.8	Let's jump in.
0:45.3	Brandon, welcome back to On the Market.
0:46.1	Thanks for being here.
0:47.3	Thanks, Dave.
0:48.1	Happy to be here.
0:55.8	As our audience must remember, Brandon joins us probably about once a year to talk about taxes. And this is a perfect time of year to just be talking about some of the updates to the tax code that are relevant
1:01.1	to real estate investors that we know about. And then the second half of the show, we'll pull out
1:04.6	crystal balls and talk about some of the things that are being discussed in terms of new policy.
1:09.0	And we just love your opinions on those, Brandon, because we don't know exactly how
1:12.8	they'll shape up.
1:14.0	But tell us, are there any new changes to the tax codes that have actually been enacted
1:19.9	that you think real estate investors should really know about right now?
1:22.6	I would say that the big one is just that bonus depreciation continues to phase out.
1:30.8	So this year, we are 40 that bonus depreciation continues to phase out. So this year we are 40% bonus depreciation next year, 20% and then 2027 will be 0% if nothing changes. Now, there's a high
	...

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