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Decoding the “Big Beautiful Bill” for Real Estate Investors

Decoding the “Big Beautiful Bill” for Real Estate Investors

REady2Scale - Real Estate Investing
2025-07-16• 41 min
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What does the return of 100% bonus depreciation mean for your next acquisition? In this episode of REady2Scale, Jeannette Friedrich sits down with Jason Melillo, CPA and CEO of KBKG, to unpack the real-world impact of the newly passed “Big Beautiful Bill.” This sweeping tax legislation is making headlines, and it brings meaningful benefits for real estate investors, especially in multifamily. From revived depreciation rules to energy-efficiency credits and SALT deduction workarounds, this conversation breaks down what matters most and why timing is critical. Key takeaways: - Bonus depreciation is reinstated at 100% for assets placed in service after January 20, 2025, providing significant year-one deductions. - Cost segregation becomes even more valuable, enabling investors to accelerate depreciation and reduce taxable income. - Energy incentives like Section 179D and 45L are being phased out, with fixed deadlines for construction starts in 2025 and 2026. - Interest expense limits are adjusted, now calculated using EBITDA instead of EBIT, allowing greater deductions for financed deals. - Section 199A (QBI deduction) is expanded, now available to professionals previously excluded, including real estate investors. - SALT cap workaround remains in place, helping high-tax state investors deduct more by paying state tax at the entity level. - Cost recovery can partially offset rising insurance costs, especially if certain improvements qualify for shorter-life treatment. - Planning ahead is essential, since cutoff dates and project timelines directly affect eligibility for tax benefits. This episode is ideal for active owners, passive investors, and family offices looking to align their strategies with the latest legislation. Resources & Links: Guest: Jason Melillo – LinkedIn KBKG Website: kbkg.com Promo Code: READY2SCALE2025 for 10% off KBKG’s cost segregation software (for properties under $1.2 million in basis) Timestamps 00:00 Introduction and Overview 00:35 Meet the Expert: Jason Melilllo 01:44 Understanding Cost Recovery and Depreciation 02:31 Key Changes in the Big Beautiful Bill 07:45 Energy Efficiency and Tax Benefits 28:27 Final Thoughts and Lightning Round Are you REady2Scale Your Multifamily Investments? Learn more about growing your wealth, strengthening your portfolio, and scaling to the next level at www.bluelake-capital.com. Credits Producer: Blue Lake Capital Strategist: Syed Mahmood Editor: Emma Walker Opening music: Pomplamoose *𝘉𝘭𝘶𝘦 𝘓𝘢𝘬𝘦 𝘊𝘢𝘱𝘪𝘵𝘢𝘭 𝘪𝘯𝘷𝘦𝘴𝘵𝘮𝘦𝘯𝘵 𝘰𝘱𝘱𝘰𝘳𝘵𝘶𝘯𝘪𝘵𝘪𝘦𝘴 𝘢𝘳𝘦 𝘰𝘱𝘦𝘯 𝘵𝘰 𝘢𝘤𝘤𝘳𝘦𝘥𝘪𝘵𝘦𝘥 𝘪𝘯𝘷𝘦𝘴𝘵𝘰𝘳𝘴 𝘰𝘯𝘭𝘺. 𝘛𝘩𝘪𝘴 𝘪𝘴 𝘯𝘰𝘵 𝘢𝘯 𝘰𝘧𝘧𝘦𝘳𝘪𝘯𝘨 𝘵𝘰 𝘴𝘦𝘭𝘭 𝘢 𝘴𝘦𝘤𝘶𝘳𝘪𝘵𝘺 𝘰𝘳 𝘢 𝘴𝘰𝘭𝘪𝘤𝘪𝘵𝘢𝘵𝘪𝘰𝘯 𝘵𝘰 𝘴𝘦𝘭𝘭 𝘢 𝘴𝘦𝘤𝘶𝘳𝘪𝘵𝘺. 𝘗𝘭𝘦𝘢𝘴𝘦 𝘤𝘰𝘯𝘴𝘶𝘭𝘵 𝘸𝘪𝘵𝘩 𝘺𝘰𝘶𝘳 𝘊𝘗𝘈, 𝘢𝘵𝘵𝘰𝘳𝘯𝘦𝘺, 𝘢𝘯𝘥/𝘰𝘳 𝘱𝘳𝘰𝘧𝘦𝘴𝘴𝘪𝘰𝘯𝘢𝘭 𝘧𝘪𝘯𝘢𝘯𝘤𝘪𝘢𝘭 𝘢𝘥𝘷𝘪𝘴𝘰𝘳 𝘳𝘦𝘨𝘢𝘳𝘥𝘪𝘯𝘨 𝘵𝘩𝘦 𝘴𝘶𝘪𝘵𝘢𝘣𝘪𝘭𝘪𝘵𝘺 𝘰𝘧 𝘢𝘯 𝘪𝘯𝘷𝘦𝘴𝘵𝘮𝘦𝘯𝘵 𝘣𝘺 𝘺𝘰𝘶.