The Ultimate Real Estate Tax Loophole
Advanced Strategies for Accelerating Deductions, Leveraging Short-Term Rentals, and Maximizing Bonus Depreciation in 2025
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.