Will 100% Bonus Depreciation Be Permanent?

In this week’s episode of the Tax Smart REI Podcast, Thomas Castelli and Ryan Carriere, CPA, break down the Senate’s draft tax bill and what it could mean for real estate investors if it becomes law.

Key topics covered:

100% bonus depreciation made permanent: what this really means
Major changes to Qualified Opportunity Zones (QOZs)
Updates to Section 179 and interest expensing rules
The fate of the SALT cap and why it’s still a moving target
Expanded QSBS exclusion and its impact on startup investors
The Senate’s fix to Excess Business Loss (EBL) carryovers
Why QBI stays at 20% and who gets left out of the benefit

Plus, Thomas and Ryan take questions from the Tax Smart community on short-term rentals without guest stays, the risks of self-preparing complex tax returns, and what happens when you sell a property at a loss.

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00:00 - Intro to the Tax Smart REI Podcast
00:10 - Overview of the Senate’s Changes to the House Tax Bill
00:28 - Mineral Rights and Working Interest Investment Promo
01:20 - 100% Bonus Depreciation Made Permanent
03:00 - Likelihood of Bonus Depreciation Passing in 2025
04:44 - Implications for Short-Term Rentals and Passive Losses
05:00 - SALT Cap Reduction Back to $10K
06:00 - Why the SALT Cap Matters for High-Tax States
07:00 - Section 163(j) Interest Expense Limit Fix for Syndicators
07:52 - Qualified Small Business Stock (QSBS) Increase
08:20 - Section 179 Expensing Thresholds Increased
08:55 - Factory Expensing for Certain Commercial Projects
09:11 - Qualified Opportunity Zones (QOZ) Made Permanent
10:42 - New Step-Up Schedule for QOZs
12:45 - Long-Term Gains on QOZ Investments Exempt After 10 Years
13:01 - Tax Planning for 2025: Discovery Call Promo
13:39 - Qualified Business Income Deduction (QBI) Adjustments
14:57 - Permanent 20% QBI Deduction & $400 Minimum for Small Filers
15:41 - Changes to Excess Business Loss (EBL) Carryover Rules
17:00 - How the EBL Patch Closes the NOL Loophole
18:34 - EBL Recap and Impact on High Earners
19:41 - Episode Recap: Bonus Depreciation and QOZs Are the Big Wins
20:23 - Listener Q&A: STR Placed in Service Without Guests
21:01 - How to Qualify for STR Loophole in Offseason
22:54 - Can CPAs Review Self-Prepared Returns?
24:00 - Why Real Estate Investors Should Avoid DIY Tax Filing
25:50 - The Power of Delegation and “Who Not How” Philosophy
27:33 - Can You Deduct a Loss on a Property Sold for Less Than Purchase?
28:55 - Final Thoughts and Closing


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