the last few years. And we’re going to talk about that today. So, Henry, what’s the big news?
The Biggest Real Estate Tax Deduction is Making a Comeback: 100% Bonus Depreciation is Almost Here!
The House has just passed a new tax bill that includes a major tax deduction potential for both real estate investors and everyday Americans. This bill is now headed to the Senate, and if it passes, it could mean huge savings for taxpayers. But what exactly is this tax deduction and why is it such a big deal? We sat down with Brandon Hall, a CPA, to break down the details and explain how this could save you tens, if not hundreds, of thousands of dollars.
Real Estate: The Ultimate Tax Haven
It’s no secret that real estate offers some of the best tax benefits of any investment in the nation. And one of the most powerful tax benefits is depreciation. This tax write-off allows you to deduct a portion of your property’s value each year, effectively turning your real-life gain into a paper loss. This not only helps with cash flow, but also reduces your tax liability.
Bonus Depreciation: Regular Depreciation on Steroids
While regular depreciation is already a powerful tool for real estate investors, bonus depreciation takes it to the next level. This tax benefit allows you to deduct a larger portion of your property’s value in the first year of ownership, resulting in even greater tax savings. And with the potential for 100% bonus depreciation, the tax benefits can be massive.
How to Take Advantage of This Huge Tax Write-Off
So, how can you make the most of this incredible tax deduction? Brandon Hall recommends consulting with a CPA or tax professional to ensure you are taking full advantage of all available deductions. It’s also important to understand the rules and limitations of bonus depreciation before claiming it on your taxes. And with the new tax bill still pending, it may be wise to hold off on filing until the details are finalized.
Don’t Miss Out on This Opportunity
The return of 100% bonus depreciation is a game-changer for real estate investors and taxpayers. It’s important to stay informed and take advantage of this opportunity to save on your taxes. So, whether you’re a seasoned investor or just starting out, make sure to consult with a tax professional and stay updated on the latest developments in the tax law. And for more information on this topic, be sure to check out our podcast episode with Brandon Hall.