For every real estate investor out there, listen up! A brand new law, often called the "Big Beautiful Bill," was just signed on July 4th, 2025. This is a game-changer for your investments, offering the biggest tax opportunity in decades.

Imagine buying a piece of real estate, and in the very first year, you can write off a HUGE chunk of its value on your taxes. That's exactly what "100% Bonus Depreciation" means. Now, it's permanent!

• What it is: When you buy a property, you can usually deduct its "wear and tear" (depreciation) over many years. Bonus depreciation lets you take a big chunk of that deduction right away in the first year. Now, you can deduct all of it for eligible property.
• Why it's HUGE: Before, this benefit was fading away. Now, it's here to stay for properties put into service after January 19, 2025. This means:
  
  • More Cash in Your Pocket Sooner: If you buy a $5 million property, instead of deducting, say, $1.2 million in the first year, you can now deduct a full $2 million! That's an extra $800,000 in deductions, which can mean hundreds of thousands of dollars in real cash savings for you.
  • No More Rushing: You no longer need to rush to buy properties by certain deadlines to get the best tax breaks. You can now make smarter investment decisions based on what's best for your business, knowing the tax benefits will always be there.
  • Cost Segregation Just Got Even Better: If you've used "cost segregation" studies before (which break down a property's components to speed up deductions), they are now even more valuable because you can deduct 100% of those identified items immediately.

More Ways This Bill Helps Real Estate Investors:

This new law isn't just about bonus depreciation. It includes other key benefits:

1. More Interest You Can Deduct: If you use loans to buy properties (like most investors), you can now deduct more of the interest you pay. This is a big deal because it means you can save even more on taxes while still getting those huge depreciation write-offs.
   
   • Simply put: It's easier to pay less in taxes on your loan interest.
2. Higher State & Local Tax Deductions (SALT Cap): For those in high-tax states, the amount you can deduct for state and local taxes (like property taxes) has gone up from $10,000 to $40,000. This is a major win for property owners in those areas.
   
   • Simply put: You can deduct more of your property taxes.
3. Bigger Estate Tax Exemption: If you're planning to pass on your real estate empire, the estate tax exemption has increased to $15 million. This means more of your property can be passed down without triggering estate taxes.
   
   • Simply put: It's easier to leave your properties to your family without huge tax bills.

Specific Properties That Get a Boost:

• Manufacturing Buildings: This is a huge win! Owners of manufacturing facilities can now potentially deduct 100% of the building's value in the first year. This could act like a massive discount on the purchase price.
• Short-Term Rentals (like VRBO/Airbnb): If you own vacation rentals, this bill supercharges your existing tax advantages. You'll get even larger first-year write-offs, putting more cash back into your business.
• Apartments, Self-Storage, Retail: Properties with lots of "short-life" items (like appliances, carpets, plumbing, etc., identified through a cost segregation study) will see immediate and significant tax savings.

What You Should Do NOW:

This is a powerful opportunity, and Kingdom Capital is here to help you make the most of it.

• For Properties You Already Own:
  
  • If you haven't done a "cost segregation study" on properties you bought recently, now is a great time to do one to unlock hidden deductions.
  • Review your loan structures to make sure you're getting the most out of the new interest deduction rules.
• For Properties You Plan to Buy:
  
  • If you're thinking of buying a property, especially after January 19, 2025, you'll get the full 100% bonus depreciation. We can help you plan the timing of your purchase to maximize your savings.
  • Consider properties like hotels, medical facilities, and manufacturing buildings – they often have the biggest potential for these accelerated deductions.
• For Property Upgrades:
  
  • If you're planning renovations, consider timing them for after January 19, 2025, so those improvements also qualify for 100% bonus depreciation.

The Bottom Line for Your Investments:

This new law brings fantastic certainty and powerful new tools for real estate investors. You can now make long-term investment decisions with confidence, knowing these incredible tax benefits are here to stay.

Kingdom Capital is your partner in maximizing these new opportunities. We're already studying how these changes will impact your properties and can help you create a personalized plan to save big on taxes and boost your cash flow.

Important Disclaimer: The content on this website, including any discussions about tax laws, depreciation, or financial strategies, is provided for general informational purposes only and does not constitute tax, legal, or accounting advice. Kingdom Capital is an investment loan company and is not a licensed tax preparer, accountant, or financial advisor. We strongly recommend that you consult with your own independent tax, legal, and accounting professionals to determine the specific impact of these changes on your individual financial situation and to receive personalized advice. Your reliance on any information provided here is solely at your own risk.