BREAKING: New tax bill changes EVERYTHING for investors- Bonus Depreciation

So the big beautiful bill just passed. President Donald Trump just signed the bill July 4, and now it is in full effect, full swing. And so today I want to break down what the bill is and why it is a massive opportunity for real estate investors, for business owners, even employees. It does affect employees as well. But specifically, I want to talk about real estate investors because it probably has the most implications for you. And if you know how to capitalize on this, it is going to allow you to grow your portfolio much faster. Faster, and also save way more on taxes, even potentially roll those into years to come. So let's talk about it. If you've been following us for any amount of time, you understand we love to share our insights as we've grown our portfolio to over $500 million in assets under management. And we want to see as many people be able to create generational wealth in the next 10 years as possible. So if you want to grow your portfolio, this is your year. So let's jump into it. I'm just going to share a couple highlights from the bill, but then I want to talk about bonus depreciation. That is one of the biggest things of this bill that is going to really hit real estate investors. It went from 40% being able to depreciate in year one to 100%. Okay. So the depreciation on certain parts of your apartment complex that really benefits you at scale, things that normally are depreciated over 5, 7, 15 year time frame and put it all in year one. Okay. First off, the bill talks about the permanent tax cuts that were presented in 2017 or temporary now made permanent. Married couples who can now deduct 13k or they could only deduct $13,000 in their tax bill can now deduct $27,000. Okay, so immediate lowering of your taxes, being able to lower the amount of taxes you owe, and then estate taxes. It also talks about a state of taxes where you can increase the amount of deductions to $15 million on inherited property, inherited assets. And for married couples, it's $30 million. Okay. So you don't have to worry about your kids or your grandkids having to pay their tail off in taxes. Now we can 15 million up to $30 million for married couples. Okay, so that's a big deal. Child tax credits, Look, I have three kids and before I could deduct $2,000, now it's increased it to $2,200. So that's a big deal, right, to have more money to invest in our kids because we owe less money in taxes and we get more of a credit tax credit for those kids. Okay. And then lastly before bonus appreciation it talks about qbi. Now there's other parts of the bill I'm just not going to go over because it's not pertinent to real estate investors as much as but the qualified business income deductions. Okay? So what that means is the profit on your business you can now deduct 23%. It went from 20% to 23%. So real estate investors making money on the side say you make a hundred thousand dollars in profit at the end of the year. You now, your taxable income is now only $77,000 of that versus 80,000. All right? So you now have $23,000 of that 100,000 tax free. So obviously that increases as you grow the income to if you're doing a million right, that's a lot more. So that's a big deal. Qbi qualified business income deduction. And it doesn't apply to certain businesses like service based businesses and other things where you're getting paid for your time, who you are, your brand. Right? So bonus appreciation is the big thing I want to talk about now. If you are somebody who wants to grow quickly, grow in 2025, experience the incredible benefits of this bill in 2025 and you want to get in the room with other people that are scaling and using capital partners to put the money up, right? Because then all of a sudden you're putting no money up and also receiving these massive tax benefits because you can depreciate your property so much faster, depreciate personal property and you know, your, your land improvements, all these different things, you can accelerate all of that. And here's the other thing. If you are somebody who wants to grow your portfolio this year and utilize this tax bill, you want to even use capital partners to be able to invest in the deal and so that you don't have to bring any money to the table. So in other words, you would bring no money to the table but also experience all these tax benefits. If you want to learn how to do that, we actually have a mastermind group in coaching that we actually help people scale their portfolio much quicker and do it using capital partners, find off market deals, all that kind of stuff. If you want to do that, what I'm going to do is drop a link in the description below. We're going to allow you to set up a call with one of our team members to create you a strategy completely free. We're just going to drop it in here because of this time that we're in and, and if it makes sense to work with us long term and join a group like that, then we can talk about that on the call. But we want to help you build a strategy. So drop in the description, there's a link, click that link, book you a call, and we'd love to connect with you personally. But bonus appreciation. So there is now a hundred percent year one write off on certain parts of the property, whereas before it was 40%. Okay? So this is huge. And it's going to really benefit a lot of people whenever they want to scale their portfolio because now you have a lot more money to invest in more properties. But what does that mean? So the IRS taxes us off income, you know, the net operating income of the property and our businesses. So the expenses, you know, if you increase expenses, then you have less profit. But the IRS sees these properties as depreciating over time because of certain wear and tear, certain things that need replacement placement more often even for land improvements and things like that because they're exposed to more weather, foot vehicle traffic, and they degrade quicker than the building. Okay? So typically there's certain. You need a cost segregation study done on your property to be able to really analyze all the potential benefits that you can get. But basically personal property is typically depreciated over a five year schedule. Okay? So these items are not permanently attached to the structure and can be removed or replaced without damaging the building. Okay? The where they wear out faster. So the IRS lets you depreciate them quicker. All right, so that's kind of a basic premise of the first category that's called personal property. All right, so examples of that would be carpets, vinyl floorings, appliances, refrigerator, ovens, dishwashers. It would be ceiling fans, window AC units, cabinets and countertops. Furniture and furnished units are common areas, light fixtures, and again, they need to be replaced more often. They wear out quicker. So they have a five year schedule. Now you can take all that and depreciate it over year one. Okay? So you take the value of all that and then you can depreciate that amount over year one. And then land improvements, okay? So that's typically like a 15 year depreciation schedule. And so things like landscaping and irrigation systems, fencing and retaining walls, sidewalks and driveways, parking lots and carports, outdoor lighting, swimming pools or playground equipment, okay? And again they're exposed to weather, so they degrade quicker than the buildings. Okay? So now you can take all that Put it in year one. And now you have a lot more money or a lot more ability to invest in future buildings now. Now just to give you an example, if you have a property you pay $10 million for, right? The land value is non depreciable. So just say it's a 1.5 million. The building valuable is depreciable. It is just say $8.5 million for the building. Okay? So you would have a cost seg study done on the property. And just suppose they look at it and they see personal property of the category I just named. 5 year is typical on that. Well, bonus is now eligible. So the bonus appreciation is now something that you could use for that. Suppose that's $1.5 million. So and then the land improvements, that's a 15 year schedule. Now it's eligible for bonus appreciation year one. That's $750,000, right. Of the 8.5 million. And then the building structure which is Normally depreciated over 27.5 year, which isn't a part of the bill. It's not. It still be on the regular schedule, but you'd still get year one. Right? But suppose that's 6.25 million. All right, so total appreciable amount is 8.5 million. You apply the 100% bonus appreciation. You have 1.5 million of personal property and 750k of land improvements. So total bonus appreciation in year one is $2.25 million that you can now depreciate year one. Okay. And then you'll also get a partial deduction from the 27 and a half year portion of year one. So let's just say 227,000. All right, so pretty insane to be able to have over two million dollars, two and a half million dollars in deductions on year one for your taxes. All right? And if you get into these properties with no money out of your own pocket, then it's even more insane, right? So that's kind of an example of what it looks like. But you know, if you guys have any questions on that, would love to hear it. But basically this bill is going to allow people to take that two and a half million dollars or whatever it is on your property. Maybe it's a one and a half. If you have a $5 million or property or whatever that is, you would have to get a cost seg study. So you know, we'll create some videos on that to help you out. But at the end of the day, if you have more money, you have the ability to roll that over into more properties and so scale much faster. If you are somebody who wants to get in the room with people doing these deals right now and being able to capitalize on this, drop in the description right now, go click that link, book a call with our team. We'd love to talk with you and build you out a plan specifically for where you're at in your market, but also your plans and your goals for this year. Okay. All right, guys, God bless, Hope this helps and look forward to seeing you grow.