Written by: Sanjin Hadziomerovic
In a landmark announcement, President Donald Trump has unveiled plans to reinstate the 100% bonus depreciation, a move set to significantly impact real estate investors, especially those in the short-term rental market. This policy allows for the immediate deduction of the full cost of eligible property in the year it’s placed in service, offering substantial tax benefits and enhanced cash flow for investors.
Understanding 100% Bonus Depreciation
Bonus depreciation enables businesses and investors to write off the entire cost of qualifying assets in the year they are acquired and put into use, rather than depreciating them over their useful lives. This accelerated deduction was initially introduced under the Tax Cuts and Jobs Act (TCJA) of 2017 but began phasing out in recent years. The reinstatement aims to restore this benefit fully, encouraging increased investment in property and infrastructure.
