If you're a high-income earner or real estate investor — especially one eyeing lakefront or vacation rentals — this could be the most valuable financial strategy you’ll read all year.
A major tax break just made a comeback: 100% bonus depreciation is back on the table, and it's a potential game changer for anyone purchasing investment or rental properties — including lake homes.
What Is Bonus Depreciation (And Why Does It Matter)?
Traditionally, when you purchase a property (let’s say for $1,000,000), the IRS allows you to depreciate it slowly over 27.5 years, taking small deductions annually.
But thanks to cost segregation + 100% bonus depreciation, you can accelerate your tax savings dramatically.
Here’s how it works:
🔹 Break the property into components (think: appliances, landscaping, flooring)
🔹 Deduct many of those items in full the first year
🔹 Potentially write off $200,000–$250,000 right away
Real-World Impact
We’ve seen investors who put $200K down on a property then deduct $225K in Year 1.
If your tax rate is around 35%, that’s nearly $79,000 in real savings — money that stays with you instead of going to the IRS.
Why This Is Especially Powerful for Lake Property Investors
Lakefront homes, vacation rentals, and short-term rental properties often include lots of depreciable assets — furniture, docks, outdoor kitchens, landscaping, appliances, and more.
That means the potential for accelerated depreciation is even greater — making this strategy particularly impactful for investors buying lake or waterfront properties.
Who Should Consider This?
This updated tax benefit is ideal for:
- High-income earners with a growing tax bill
- Real estate professionals (or those married to one)
- Investors purchasing short-term rentals, lake homes, or vacation properties
- Anyone looking to boost their ROI and cash flow quickly
Act Now — This Window May Not Last
100% bonus depreciation was phasing out, but a newly passed bill brings it back in full — at least for now.
If you’ve been thinking about investing in real estate — especially a lake property — now may be the best time to move.
Final Note (And a Quick Disclaimer)
I’m not a CPA—so talk to your CPA and financial planner to see if this strategy would make sense for you. If you need a recommendation for one, feel free to reach out!
That said, I’m happy to share what I’ve learned and help point you in the right direction!
If you're ready to explore great investment opportunities — including prime lakefront options — reach out and let's find the perfect fit for your goals.