Bonus Depreciation in 2026: What to Know as a Real Estate Investor

Bonus Depreciation in 2026: What to Know as a Real Estate Investor

KEY TAKEAWAYS

  • Bonus depreciation allows businesses and investors to deduct a larger portion of qualifying asset costs in the year they’re placed in service, accelerating tax savings upfront.
  • The One Big Beautiful Bill Act, signed into law on July 4, 2025, permanently restores 100% bonus depreciation for eligible property placed in service on or after January 20, 2025.
  • Real estate investors can now fully deduct 100% of qualified property costs, including improvements, fixtures, and equipment, in the same tax year.
  • This creates powerful tax advantages for real estate professionals, landlords, short-term rental owners, and commercial property investors, especially when paired with cost segregation studies.
Small green and red model homes sit on top of coins stacked in varying heights.
Written by Bill Lyons