100% Bonus Depreciation Restored: Here’s How a $600K STR Can Save You Big on Taxes in 2025
Thanks to the new bill restoring 100% bonus depreciation permanently for “qualified property” purchased on or after January 20, 2025, real estate investors now have a massive opportunity to accelerate deductions and slash tax bills—especially for short-term rental (STR) investors.
If you’re making $200,000 a year, here’s exactly how to leverage this powerful tax break.
🧭 Step-by-Step: How to Get 100% Bonus Depreciation on a $600K STR
✅ 1. Purchase “Qualified Property” After Jan 20, 2025
• STR must be residential real estate with personal property components (appliances, flooring, cabinets, HVAC).
• Must be placed in service (available for rent) in the same year.
✅ 2. Ensure It’s a True Short-Term Rental (STR)
• Average guest stay must be 7 days or less
• No need to qualify as a real estate professional—just material participation is required.
✅ 3. Materially Participate in the STR
• Spend 100+ hours/year, or more than anyone else, managing the rental.
• Activities include guest communication, cleaning coordination, and pricing.
✅ 4. Order a Cost Segregation Study
• Hire a professional engineer/tax firm to:
• Break down property into 5-, 7-, and 15-year asset classes
• Identify “tangible personal property” eligible for 100% bonus depreciation
✅ 5. Apply Bonus Depreciation in Year 1
• Depreciate up to 25–30% of purchase price (excluding land)
• Offset active income—even W-2 earnings—if you materially participate
✅ 6. Work with a Real Estate-Savvy CPA
• File the cost seg report
• Apply deductions accurately
• Maximize your IRS-compliant write-offs
📊 STR Tax Savings Chart (Based on $600K Purchase, $200K Income)
Category Amount
Property Purchase Price $600,000
Less Land Allocation (~15%) -$90,000
Depreciable Basis (Building + FF&E) $510,000
Estimated Bonus Depreciation (25–30%) $127,500 – $153,000
Tax Bracket (approx. 32%)
Estimated Tax Savings $40,800 – $48,
🚀 Final Take: STRs Just Became the Ultimate Tax Shelter Again
With 100% bonus depreciation now restored permanently for qualified real estate purchases after Jan. 20, 2025, savvy investors can legally erase tens of thousands in taxes—while building wealth through real estate.
🏡 Ready to Find a Property That Pays You Back? go to www.casapesce.com
Let’s find your next STR investment in Georgia, the Gulf Coast, or the Carolinas—and help you keep more of what you earn.
Josephine Traina | SERHANT Atlanta
📍 For an elevated real estate experience that exceeds all expectations.
