Real Estate Investing with Coach Carson

#435: Did the Big Beautiful Bill Just Make Rentals More Profitable?

Aug 11, 2025
Amanda Han and Matthew McFarland, CPAs at Keystone CPA, share insights on how the new tax bill can significantly enhance rental property profitability. They delve into the reinstatement of 100% bonus depreciation, highlighting strategies to write off expenses. The duo explains the real estate professional status, short-term rental tax advantages, and recent changes to tax deductions, including increased limits for high-tax states. They also discuss empowering children's financial futures with new investment accounts, making tax planning approachable and beneficial for all investors.
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INSIGHT

100% Bonus Depreciation Is Back

  • The One Big Beautiful Bill reinstates 100% bonus depreciation for qualifying assets this year.
  • Investors can immediately write off many property items instead of spreading depreciation over years.
ANECDOTE

Concrete Example Of Tax Savings

  • Amanda used a $90,000 first-year depreciation example to show real tax impact on investors.
  • She noted at a 37% bracket that equals roughly a $35,000 federal tax reduction.
ADVICE

Adjust Withholdings And Estimated Payments

  • If you intend to use accelerated depreciation this year, change your W-2 withholdings now.
  • Also reduce estimated quarterly payments so you keep cash monthly instead of giving the IRS an interest-free loan.
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