This New Bill Could Double Your Tax Savings in 2025
Summary
A new tax bill, "the one big beautiful bill," offers significant tax benefits for real estate investors, including increased bonus depreciation and the continuation of the qualified business income (QBI) deduction. Hosts, especially rookies, can potentially double their tax savings by leveraging these provisions. Consider consulting with a CPA to maximize benefits.
Key Insights
- •The bill extends the qualified business income (QBI) deduction, allowing eligible business owners to deduct up to 20% of their business income from their taxes.
- •The "one big beautiful bill" allows for 100% bonus depreciation, which means you can write off a significant portion of the building's purchase price in the first year.
Action Items
- ✓Review your individual tax return (Form 1040) to see if you are taking advantage of the qualified business income deduction.Effort: lowImpact: medium
- ✓Consult with a tax professional, like a CPA, to understand how the changes in the "one big beautiful bill" can benefit your specific situation and rental property investments. Consider a cost segregation study to maximize depreciation write-offs.Effort: mediumImpact: high
Tools & Resources
- →Keystone CPA: The article mentions Amanda Han and Matt MacFarland from Keystone CPA, a tax and accounting firm.
Common Mistakes
- ⚠Missing out on the qualified business income (QBI) deduction, which has been extended as part of the bill and can save you money.
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