The 2025 Tax Bill Just Changed Everything for Real Estate Investors
President Trump’s Big Beautiful Bill is a total game changer. It restores 100% bonus depreciation, secures the future of 1031 exchanges, and brings back opportunity zones. Whether you’re an experienced investor or just getting started, these changes could significantly impact your strategy going forward.
I sat down with tax strategist Scott Saunders, someone who has structured over 100,000 exchanges. He broke down exactly what’s in this new bill and why it matters.
1031 Exchanges Are Protected and More Valuable Than Ever
1031 exchanges have been under attack for years. At one point, lawmakers wanted to cap the tax deferral at just $500,000 per person, which would have gutted commercial real estate. Fortunately, the new tax bill preserves 1031 exchanges exactly as they are.
This is a big win for investors. You can still defer capital gains taxes by rolling your profits into new properties. It’s one of the most powerful tools in real estate, and it helps drive the entire industry; from brokers and lenders to appraisers and title companies.
Even international investors are amazed we have something like this in the U.S.
100% Bonus Depreciation Is Back and Here to Stay
Bonus depreciation is one of the best tools available to real estate investors. It allows you to write off a large portion of a property’s value in the first year of ownership, instead of spreading it out over several decades.
Under the old rules, the amount you could write off was phasing down each year. But the new bill restores full 100% bonus depreciation and makes it permanent. That means more upfront savings and bigger tax deductions, right when you need them.
If you structure your deals right, this can make a huge difference in how your investments perform.
Why Cost Segregation Matters More Than Ever
To take full advantage of bonus depreciation, you’ll need a cost segregation study. This process breaks down the components of your property things like flooring, appliances, landscaping and reclassifies them into shorter depreciation schedules.
That reclassification lets you deduct more in year one. On a $1 million property, you might be able to write off $200,000 or more immediately. That’s real cash flow you can use now instead of waiting 30 years.
It’s important to use a certified provider and shop around. Prices vary widely, but with the demand rising, this service will become more competitive and accessible.
Opportunity Zones Are Back and Bigger Than Before
Opportunity zones were originally introduced to encourage investment in underserved communities. They’ve now been brought back permanently, and more areas have been added.
This is a massive opportunity for investors with capital gains from businesses, stocks, crypto, or real estate. You can roll those gains into a qualified opportunity zone fund and, if you hold the investment for 10 years, pay zero tax on the appreciation.
My team is already building in these areas, rolling equity from older properties into brand-new multifamily projects. It’s a smart way to do good for a community and benefit from long-term tax advantages.
Carried Interest and Capital Gains Rules Remain Favorable
The new bill also left several key investor-friendly policies untouched. Carried interest stays intact. Capital gains rates remain low. And on top of that, estate tax exemptions were raised significantly, now up to $15 million per person, or $30 million for a couple.
This gives families more flexibility when it comes to generational wealth planning. For most investors, this simplifies the long-term game.
What About Risk and Recapture?
These tax tools are powerful, but they’re not magic. If your business fails or you sell a property without proper planning, you could face depreciation recapture or a capital gains hit.
That’s why strategy matters. Use tools like cost segregation and 1031 exchanges together. Plan your exits just as carefully as your acquisitions. And always work with professionals who understand how to structure deals to protect your wealth.
Why the Government Keeps Rewarding Real Estate Investors
President Trump comes from real estate, so it’s no surprise that the Big Beautiful Bill rewards those invested in the field. The tax code is written to guide money toward national priorities. Housing, development, and job creation are all at the top of that list. Real estate investors make that happen, so the incentives are designed to reward those contributions.
This has always been true. It was true 50 years ago, and it’s true today. If you know how to use the tax code properly, you can build serious wealth and keep more of what you earn.
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