If you've ever wondered how people become millionaires through real estate, you're not alone.
Most people assume it’s about buying low and selling high—or renting out a few properties and collecting passive income over time. While those things certainly help, there's another less talked about wealth-building tool that’s quietly creating massive tax advantages for savvy investors:
👉 Bonus Depreciation.
And thanks to a new tax bill that’s on its way to full approval by Congress, 100% bonus depreciation is coming back, making now one of the best times in years to get serious about real estate investing.
So What Is Bonus Depreciation?
At a basic level, the IRS allows you to depreciate (or write off) the value of a building over time as it "wears down." Normally, that happens over 27.5 years for residential properties.
But bonus depreciation lets you accelerate that timeline—dramatically.
Instead of waiting decades to write off certain parts of your investment property, you can front-load a huge chunk of those deductions into year one. We’re talking about writing off things like carpet, lighting, cabinetry, and appliances—all of which wear out faster than the building itself.
How Does This Actually Work?
To unlock these accelerated deductions, we did something called a Cost Segregation Study.
It’s a detailed analysis that separates out all the components of a property (structure, systems, finishes, land improvements, etc.). Once those items are broken down, many can be depreciated over 5, 7, or 15 years instead of 27.5.
And with 100% bonus depreciation, all of those short-life items can be fully deducted in the first year.
Our Story: Offsetting Over $100K in Taxes—Legally
Hillary and I used this exact strategy on our apartment complex.
We brought in professionals to complete a cost segregation study, and when it was done, we were able to legally write off hundreds of thousands of dollars in depreciation—enough to offset over $100,000 in taxes we would have owed.
This wasn’t a loophole. It wasn’t sketchy. It’s an IRS-approved strategy that some of the biggest investors in the country have been using for years—and now it’s available again to everyday investors like us.
Why This Matters Now
Before the latest tax bill, bonus depreciation had been phasing out—down to 60% in 2025. But the new legislation reinstates 100% bonus depreciation, allowing investors to take full advantage again.
That means:
✅ Bigger tax write-offs in year one
✅ More cash flow to reinvest sooner
✅ Faster wealth accumulation
If you've been thinking about getting into real estate, this is a powerful reason to stop waiting. And if you're already investing but not using strategies like this—you’re likely leaving tens of thousands (or more) on the table.
Want to Learn More?
We love helping people not only buy real estate—but build wealth through it.
If you're curious about how strategies like bonus depreciation, cost segregation, or multifamily investing could work for you, shoot us a message. Whether you're just starting or ready to scale, we’ll help you build a plan that fits.
Let’s talk about how real estate can change your financial future—just like it did ours.
Kyle Kline
Sell MOORE Homes | Investors, Realtors, Educators
📧 [email protected] | 📞 910-315-3856
