333. The Senate’s version: Permanent 100% Bonus Depreciation
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Jun 25, 2025
Discover the implications of the Senate's draft tax bill for real estate investors, including the permanence of 100% bonus depreciation. Dive into major shifts in Qualified Opportunity Zones and updates to business loss deductions. Explore the fate of the SALT cap and how it might affect your investments. Learn about the expanded QSBS exclusion for startups and the continued QBI benefit. The hosts also tackle community questions on managing complex tax returns and strategies for selling properties at a loss.
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insights INSIGHT
Permanent 100% Bonus Depreciation
The Senate aims to make 100% bonus depreciation permanent, unlike the House's five-year extension proposal.
This change boosts confidence for real estate investors planning purchases anticipating permanent accelerated depreciation benefits.
insights INSIGHT
SALT Cap Reverted to $10,000
The SALT cap is set to return to $10,000 in the Senate bill, reversing the House proposal to raise it to $40,000.
This impacts taxpayers in high tax states by limiting state and local tax deductions on federal returns significantly.
volunteer_activism ADVICE
Rent Out Property for Deductions
To qualify for short-term rental depreciation deductions, ensure the property has at least some guest stays.
Without rentals, deductions apply as passive losses, limiting the use of the short-term rental loophole benefits.
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In this week’s episode of the Tax Smart REI Podcast, Thomas Castelli and Ryan Carriere, CPA, break down the Senate’s draft tax bill and what it could mean for real estate investors if it becomes law.
Key topics covered:
- 100% bonus depreciation made permanent: what this really means
- Major changes to Qualified Opportunity Zones (QOZs)
- Updates to Section 179 and interest expensing rules
- The fate of the SALT cap and why it’s still a moving target
- Expanded QSBS exclusion and its impact on startup investors
- The Senate’s fix to Excess Business Loss (EBL) carryovers
- Why QBI stays at 20% and who gets left out of the benefit
Plus, Thomas and Ryan take questions from the Tax Smart community on short-term rentals without guest stays, the risks of self-preparing complex tax returns, and what happens when you sell a property at a loss.
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