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🧟 Bonus Depreciation... Resurrected?!
Steve Nabity
Want To Invest In Real Estate But Don't Know Where To Start?
In 2017, Congress passed the Tax Cuts and Jobs Act allowing investors to effectively write off 100% of the value of any assets they bought with less than a 20-year life (bonus depreciation). This was a HUGE win for real estate investors as it provided the potential for significant tax benefits.
Unfortunately, it was predetermined that this law would be short-lived and begin to phase out in 2023 (80% write-off) and decrease by 20% each year with its eventual conclusion in 2027.
But… last month, the House of Representatives voted and passed the Tax Relief for American Families and Workers Act, which if passed by the Senate, would reinstate bonus depreciation to 100%.
Want To Invest In Real Estate But Don't Know Where To Start?
While we’re still a ways away from this new law being passed, it’s believed that there’s strong enough support on both sides of the table to get this bill passed soon.
Whether or not this will retroactively affect 2023 taxes is yet to be determined, but either way, this could be another BIG win for real estate investors looking to offset their ordinary income and reduce (or even eliminate) their personal taxes.
