On July 4, 2025, President Trump formally signed the One Big Beautiful Bill—a sweeping, roughly 900-page legislative package—into law in a Fourth of July White House ceremony featuring a military flyover. This new law extends the 2017 tax rates permanently and introduces several targeted deductions affecting everyday earners and STR operators.
🎯 Key Tax & Deduction Updates
- Permanent 2017 tax cuts for individuals and businesses.
- New deductions:
- No-tax on tips, up to $25,000 per individual.
- No-tax on overtime, capped at $12,500 (planned $25,000 for joint filers).
- $6,000 “senior deduction” for Social Security beneficiaries earning under $75,000 .
- State and Local Tax (SALT) cap raised to $40,000 (phasing out for incomes above $500,000) through 2030.
- Child Tax Credit uplifted to $2,200, with expanded ages and temporary terms.
🏠 What This Means for STR Owners
Great news for property investors and short-term rental hosts:
- The bill revives 100% bonus depreciation on eligible assets—including cost segregation and STR improvements—on investments placed into service from 2025–2030.
- That means purchases like appliances, furniture, even structural enhancements, can be fully deducted in year one—accelerating write-offs and improving cash flow.
- Combined with legacy TCJA benefits like pass-through deductions, STR owners now have enhanced strategies to boost profitability during property acquisition and renovation.
📈 How to Leverage STR Financial Tools
STR managers should take advantage of Chalet’s financial platforms:
- STR Calculator: Pinpoint your net revenue, including updated depreciation benefits—explore it here: STR Calculator.
- Performance Overview: Monitor your income trends and expense ratios—all in one dashboard: STR Overview.
These tools are more powerful than ever. Plugging in your property’s rehab budget or equipment costs lets you instantly model the impact of 100% bonus depreciation, SALT changes, and new deductions—helping you fine-tune rental pricing, tax strategies, and seasonal forecasting.
