The New Tax Bill & You: 3 Key Real Estate Tax Strategies You Shouldn’t Ignore

If you’re a real estate investor, private money lender, or small business owner, the latest tax law changes could mean serious savings — but only if you know how to use them.

At Grit & Polish Coaching, I’m passionate about helping women confidently grow wealth, protect profits, and lead in the investing space. Here’s a quick breakdown of three major tax wins from the new bill you should know about.

1. The QBI Deduction — A Game-Changer for Private Lenders

The Qualified Business Income (QBI) deduction lets eligible businesses deduct up to 20% of qualified net income.

What’s new: Private money lending (PML) is now officially recognized as a business. That means if you’re lending through an LLC or running your operation like a business, you may now qualify for this powerful deduction.

Who qualifies?

• Private money lenders

• Real estate rental operators

• Property managers

• Active investors or flippers with business entities

It’s not one-size-fits-all — there are income caps and rules. But if you’re treating your lending or real estate like a real business, this deduction can reduce your taxable income in a meaningful way.

2. Bonus Depreciation — Maximize Your Write-Offs Now

Bonus depreciation is back at 100%. That means you can deduct the entire cost of qualified assets (like appliances, HVACs, fencing, or landscaping) in the first year they’re in service.

Why it matters:

• Flippers and buy-and-hold investors can lower tax bills fast

• Paired with cost segregation, you can break down components of a property (like lighting or flooring) for even more accelerated deductions

• Whether you DIY or hire contractors, it applies

Before using, check with a tax pro — depreciation impacts long-term strategy.

3. Section 179 — Precision Deductions for Real Estate Businesses

Nicknamed “sniper depreciation,” Section 179 lets you deduct up to $2.5 million per year in specific business-use assets.

This can include:

• Laptops, software, or office equipment

• Staging materials

• Business-use vehicles

• Marketing tools or equipment

For those running real estate like a true business, Section 179 is a precision tool to match deductions to actual use.

Final Thoughts: Strategy Over Hype

These tax changes offer big opportunities — but they’re not plug-and-play. Before applying anything, talk to your CPA. Your entity structure, income, and business setup all shape what’s right for you.

At Grit & Polish Coaching, we’re building a community of women who lead in real estate with grit, grace, and smart strategy.

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