If you invest in rental or commercial property, the new 2025 tax law might be your favorite thing since sliced bread.
Here’s why:
👉 100% Bonus Depreciation is Back and Permanent
Assets placed in service after January 19, 2025, can now be expensed in full—again. That means instead of deducting a building or renovation over 39 years, for example, you can now, in certain scenarios, take the entire deduction in year one (for qualifying assets). HUGE tax reduction opportunities for real estate investors
👉 Basis Shifting Crackdown—Now Reversed
You may have heard that the IRS was clamping down on “basis shifting” between partnerships. That crackdown has been called off. The controversial reporting rules are gone (for now), which gives more flexibility in “creative strategies” for real estate investors who are involved in multiple deals—this must be done right, though, in order to make sure things stay legal and ethical.
👉 Soft Letters for Partnerships Are on the Rise
Even though some rules were relaxed, the IRS is still watching real estate partnerships closely. If you get a “soft letter” asking about your balance sheet, don’t ignore it—we can help you respond properly to avoid a larger issue.
Real estate tax strategy isn’t going away—but it’s definitely evolving. These recent changes are highly beneficial to real estate investor clients. But, to take advantage of tax breaks while also staying out of trouble with the IRS, we must always work together to do things in the right way.
Interested in reducing your tax burden in 2025 and beyond? Our tax reduction consulting service is designed to help you take full advantage of recent changes in tax law. To schedule a meeting with an Easy Tax Service Professional, please call 928-775-7000 Ext 0 and speak with our receptionist.