HEADS UP: BONUS DEPRECIATION CHANGES FOR 2025

HEADS UP! Bonus Depreciation is Changing in 2025 There's a big change coming that you should know about! The bonus depreciation rate, which has been a great tax advantage for property investors, is dropping from 60% in 2024 to 40% in 2025. What does this mean? Smaller immediate tax breaks on new properties next year. If this is the first time you're hearing about the 60% bonus depreciation on property -- it's basically a killer tax break you can take advantage of this year. It lets you write off 60% of the cost of certain investment properties right when you start using them. This means the potential for less taxable income and more cash in your pocket upfront! So, What Should You Do? Think About Timing: If you've been planning on buying, you might want to do it before the end of 2024 to get that higher rate. Revisit Your Plans: With the tax benefits shrinking, take another look at your financial forecasts and expected returns. Get Some Tax Advice: Chat with a tax advisor to see how you can adjust your strategy and still come out ahead. If you're looking for someone to talk to - I am happy to send you a referral. Consider Cost Segregation: This can help you squeeze the most out of your depreciation deductions. Not sure how this works, I'm here to help! Watch the Market: These changes could shake things up, so keep an eye on how they might affect property values and demand. Staying ahead of changes will help you keep your investment game strong. No matter where you live in the country, I'm happy to connect you with trustworth pros. Whether you need someone to talk about taxes and your finances, loan options or need a real estate agent who understands investment properties - let's chat! I'm based in San Diego, but have worked to build a referral network of the best agents at Compass in other markets.

Multi-Units Under $1M

La Mesa 4530-32 4th Street 3 BD 2 BA 1235 SF $920,000 Logan Heights 3094 Franklin Avenue 4 BD 0 BA 1064 SF $835,000 La Mesa 7901 Hillside Drive 4 BD 0 BA 1558 SF $949,900

Lemon Grove 2201 Bonita Court 4 BD 4 BA 1801 SF $860,000 Logan Heights 3128 Newton Avenue 4 BD 0 BA 1288 SF $820,000 Teralta East 4220-22 Chamoune Avenue 3 BD 0 BA 1200 SF $899,900 La Mesa 6080-82 Horton Drive 4 BD 0 BA 1440 SF $950,000

Barrio Logan 928 South Evans Street 4 BD 0 BA 1020 SF $899,000 Southern San Diego 1241 13th Street, Unit 43 5 BD 3 BA 1661 SF $995,000

Have A Question?

Erin Perry DRE# 02190074 REALTOR® M: 707.889.3338 erin.perry@compass.com

Compass is a real estate broker licensed by the State of California operating under multiple entities. License Numbers 01991628, 1527235, 1527365, 1356742, 1443761, 1997075, 1935359, 1961027, 1842987, 1869607, 1866771, 1527205, 1079009, 1272467. All material is intended for informational purposes only and is compiled from sources deemed reliable but is subject to errors, omissions, changes in price, condition, sale, or withdrawal without notice. No statement is made as to the accuracy of any description or measurements (including square footage). This is not intended to solicit property already listed. No financial or legal advice provided. Equal Housing Opportunity. Photos may be virtually staged or digitally enhanced and may not reflect actual property conditions.

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