The One Big Beautiful Bill Act reinstates 100% bonus depreciation for qualifying real estate components through 2029. Paired with cost segregation and the STR material-participation exception, high-earners can convert a single Arizona property into a seven-figure paper loss — deductible against active W-2 and business income.
A licensed engineer dissects your property into its component parts — cabinetry, flooring, landscaping, electrical, appliances — and reclassifies 25–40% of basis from 27.5-year straight-line into 5, 7, and 15-year recovery periods. The shorter the life, the faster the deduction.
The One Big Beautiful Bill Act reinstated full 100% first-year bonus depreciation for qualified property placed in service between 2025 and 2029. Every dollar of reclassified basis becomes a Year-One deduction — no waiting, no phasedown, no capital at risk.
When average guest stays are ≤ 7 days, the property is not a "rental activity" under §469 — it's a trade or business. Satisfy one of seven material-participation tests (100+ hours often suffices) and losses flow against W-2, 1099, and active business income. No real estate professional status required.
A confidential, 20-minute strategy call to model your acquisition, coordinate with your CPA, and map a qualifying Arizona asset to your tax profile.
15 minutes · no spam · just math
I'll be in touch within 24 hours to schedule your strategy call. Check your inbox for a confirmation.