A major tax advantage is back on the table for investors. With the recent passage of what’s being dubbed the One Big Beautiful Bill, Congress has officially reinstated 100% bonus depreciation, retroactive to January 19, 2025. For real estate investors, both current and prospective, this is a significant win.

What Is Bonus Depreciation?

Bonus depreciation allows investors to immediately deduct a large portion of the cost of qualified property improvements and tangible assets in the year they’re placed into service, rather than spreading the deduction out over a typical depreciation schedule. At 100%, this means investors may be able to fully deduct eligible expenses right away, lowering taxable income and boosting after-tax returns.

The ability to front-load depreciation has long been a powerful tool in real estate investing. It enhances cash flow, increases internal rates of return (IRR), and allows for more flexible capital allocation.

Why This Matters Right Now

This update comes at a critical time. With high interest rates, tighter capital markets, and continued economic uncertainty, anything that strengthens an investment’s after-tax performance is worth paying attention to.

For those considering new investments before year-end, particularly in private real estate funds, the reinstatement of 100% bonus depreciation may influence how and when capital is deployed.

The Impact on Manufactured Housing

Although not specifically addressed in the legislation, the impact of this tax change is especially relevant to niche sectors like manufactured housing, a space where infrastructure improvements are central to the value-add strategy.

At Crystal View Capital, we perform cost segregation studies on every asset we acquire, allowing us to accelerate depreciation on key improvements such as upgraded utility systems, roads, and lot configurations. With the new bill in place, investors in offerings like our Fund IV stand to benefit from enhanced tax efficiency as we continue to acquire and improve communities across the country.

Looking Ahead

The passing of the Big Beautiful Bill signals that lawmakers continue to see real estate investment as a critical component of economic growth, and they’re offering meaningful incentives to keep capital flowing into the sector.

If you're evaluating your next investment, or considering participation in Fund IV, this is the time to understand how bonus depreciation could benefit you.

Want to discuss how this update could impact your investment strategy? Schedule a call with our team →

Disclaimer: The information provided by Crystal View Capital is for informational purposes only and does not constitute tax, legal, or investment advice. Investors should consult their CPA or a qualified tax advisor to understand how recent legislative change may impact their individual tax situation. There are no guarantees that any strategies, goals, or projections discussed will be achieved. All investments involve risk, including the potential loss of principal, and may be affected by market conditions or other unforeseen factors. Past performance is not indicative of future results. Investors are encouraged to perform their own due diligence and consult with a financial advisor before making any investment decisions.