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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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.

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.

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. To become a client, request a consultation from Hall CPA, PLLC at go.therealestatecpa.com/3KSEev6 Subscribe to REI Daily & Enter to Win a FREE Strategy Call: go.therealestatecpa.com/41JuQBX Connect with Eckard Enterprises: https://eckardenterprises.com/taxsmartrei/ The Tax Smart Real Estate Investors podcast is for general information purposes only and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. Information on the podcast may not constitute the most up-to-date legal or other information. No reader, user, or listener of this podcast should act or refrain from acting on the basis of information on this podcast without first seeking legal and tax advice from counsel in the relevant jurisdiction. Only your individual attorney and tax advisor can provide assurances that the information contained herein – and your interpretation of it – is applicable or appropriate to your particular situation. Use of, and access to, this podcast or any of the links or resources contained or mentioned within the podcast show and show notes do not create a relationship between the reader, user, or listener and podcast hosts, contributors, or guests.