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The Ultimate Real Estate Tax Loophole
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The Ultimate Real Estate Tax Loophole

Advanced Strategies for Accelerating Deductions, Leveraging Short-Term Rentals, and Maximizing Bonus Depreciation in 2025

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Max Donovan
Mar 27, 2025
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The Ultimate Real Estate Tax Loophole
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Hello Friends!

Most U.S. entrepreneurs know that real estate has long been a cornerstone for wealth-building, strategic tax reduction, and long-term security. Yet many don’t realize the depth of advanced tactics that can supercharge those benefits—especially in 2025, as bonus depreciation continues its phase-out.

Below, we’ll explore the nuances of cost segregation, short-term rental (STR) exceptions, partial asset dispositions, and other cutting-edge methods that serious investors and innovative entrepreneurs will use to slash their tax bills and amplify cash flow.


Why 2025 is a Make-or-Break Year

From 2017 to 2022, the Tax Cuts and Jobs Act allowed 100% bonus depreciation on qualifying assets. But this favorable rate has been tapering off:

  • 2023: 80%

  • 2024: 60%

  • 2025: 40% (Key Year for Current Strategies)

  • 2026: 20%

  • 2027: 0%

Unless new legislation extends or changes these rules, 2025 is the last primary window for a substantial bonus write-off. Entrepreneurs who have well-timed acquisitions and perform detailed cost segregation can still lock in 40% immediate expensing on qualified property. Couple that with short-term rental strategies, and you will have a powerful play for offsetting passive and active income.


Part I: The Foundations—Standard Depreciation and Cost Segregation

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