If you own commercial or multifamily property, Trump’s Big, Beautiful Bill delivers serious tax benefits. Discover what’s new, what’s permanent, and most importantly, how it can help you keep more money in your pocket.
Key Takeaways:
- 4 major tax advantages property investors can leverage under the new bill
- Who qualifies for the 20% pass-through income discount
- The changing depreciation rules and what they mean for your property
- The impact on long-term cash flow and wealth-building strategies
- Practical examples from investor scenarios and tax simulations
What Is Trump’s Big, Beautiful Bill?
Imagine buying your first commercial or multifamily property, and the federal government hands you thousands of dollars to boost profitability. That’s exactly what’s happening under the newly passed 2025 tax bill—what President Trump calls his “Big, Beautiful Bill.”
To understand this legislation, you need a bit of context. Back in 2017, President Trump introduced the Tax Cuts and Jobs Act—a sweeping tax reform that gave substantial breaks to real estate investors and business owners. However, many of those generous provisions were set to expire in 2025.
Fast forward to today: Trump’s newly passed Big, Beautiful Bill not only makes those original breaks permanent—it also introduces additional enhancements that further reduce taxes and expand deductions. And unlike the phased sunset of the 2017 reforms, these updates are here to stay. Let’s explore the biggest benefits this bill offers and how it will help you keep more of what you earn.
Benefit #1: Permanent 100% Bonus Depreciation
Arguably the most powerful change in Trump’s bill is the permanent establishment of 100% bonus depreciation. For property owners, this means you can deduct a massive portion of your building’s components in the year you purchase or upgrade it by performing a cost segregation study. For a more in depth look at accelerate depreciation, check out my video titled Cost Segregation Made Simple; below is simple overview illustrated with a practical example.
Example: 20-unit apartment building purchased for $3 million.
For tax purposes, the IRS typically splits this into:
- 70% property value = $2.1 million
- 30% land value = not depreciable
Under traditional depreciation rules, you’d spread the depreciation over 27.5 years—around $76,000 per year. That’s a solid benefit, but bonus depreciation changes the game.
Cost Segregation
With bonus depreciation, you can conduct a cost segregation study and write off everything from appliances to sidewalks—upfront. For a 20 Unit apartment building you can write-off:
- 20 stoves
- 20 refrigerators
- 20 HVAC systems
- 20 sets of windows, carpets, drapes
- Landscaping, sidewalks—you name it
About $600,000 in immediate first-year deductions, which can wipe out taxes on your job income, rental income, or even capital gains.
Why This Matters
Here’s why permanent bonus depreciation is significant:
- Immediate tax savings wipe out taxes on your job, rental income, or even capital gains from selling another property
- Unused deductions can be carried forward to offset future taxable income or gains
- High-earning professionals can use this strategy to minimize taxes when they buy investment property
- Real estate professional status—if your spouse qualifies—can unlock even more write-off opportunities
This is one of the most powerful tax strategies available to property owners, and it’s now locked in for good.
Benefit #2: Permanent 20% Small Business Tax Deduction (QBI)
The bill also makes the Qualified Business Income (QBI) Deduction permanent. This offers real estate investors a reliable way to reduce their taxable income year after year.
Here’s how it works:
Take Kevin, an investor who earns $50,000 annually from his rental property and $140,000 from his full-time job.
- Total income: $190,000
- QBI deduction: 20% of $50,000 = $10,000
Since Kevin’s total income is below the phase-out threshold of $197,000, he qualifies to deduct the full amount. His taxable income is now $180,000, instead of $190,000. It’s essentially a “20% off coupon” for your rental property income and it’s available every year.
For anyone making a solid income from real estate this benefit gives you more room to grow, save, and reinvest. And now that it’s permanent, it’s a long-term strategic advantage.
Benefit #3: Expanded Section 179 Expensing ($2.5M Cap)
Forget the technical jargon—this benefit allows you to deduct large capital expenses immediately, rather than depreciating them over time.
Let’s say you buy a 12-unit building and spend $150,000 on improvements:
- New appliances
- Flooring
- Furniture
Previously, those items had to be depreciated over 5 to 7 years. With this newly expanded Section 179 rule, you can write off all $150,000 in the same tax year. The ripple effect? It stimulates spending, drives renovation activity, supports the broader economy, and helps investors reduce tax burdens in real time.
Benefit #4: Full Deduction for Interest Expenses — Section 163(j)
The fourth benefit in Trump’s Big Beautiful Bill is the full deduction of interest expenses. This change is a big win for anyone with sizable property loans. Under the old Section 163(j) rules, investors were limited in how much interest expense they could deduct from investment property loans. This bill removes those limits for commercial and multifamily property owners.
Example:
- You pay $100,000 in interest on your property loan.
- Previously: Only part of this could be deducted.
- Now: You can deduct 100%, in the same year.
This change provides commercial and multifamily real estate investors with predictable and substantial savings, making borrowing a more effective tool for scaling portfolios.
A New Era for Real Estate Investors
Trump’s Big, Beautiful Bill isn’t just tax reform—it’s a fundamental retooling of how commercial real estate investing works.
With permanent bonus depreciation, guaranteed QBI deductions, immediate write-offs for upgrades, and full interest expense deductions, this legislation empowers investors to:
- Maximize tax efficiency
- Increase net income and cash flow
- Strategically plan for long-term wealth
Every Successful Commercial Real Estate Investor Has a Mentor
If you’ve been sitting on the sidelines, this bill might just be the green light you’ve been waiting for. Whether you’re a first-time investor or a high-income professional looking for tax relief, the opportunity is real— and there may never be a better time. Get your mentor here: Commercial Property Advisors Protege Program
If you have any comments or questions, text PETER to 833-942-4516.
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