The 2025 Tax Bill:
Your Strategic Advantage
What Real Estate Investors & Contractors Need to Know Now
The landscape just shifted. Are you positioned to capitalize?
Why This Matters to You
The One Big Beautiful Bill Act (Public Law 119-21) represents the most significant tax legislation since 2017, permanently extending key provisions while introducing new opportunities for real estate investors and construction contractors.
At Strategic Planning Advisors, we've dissected every provision to identify exactly where our clients can gain the most ground.
This isn't theory. We're active investors and contractors ourselves—and we're already implementing these strategies.
If you're a real estate investor, construction contractor, or entrepreneur, this bill fundamentally changes:
- How you structure acquisitions (100% bonus depreciation is back)
- When you recognize income (new accounting methods)
- Where you invest (Opportunity Zones 2.0)
- What you can deduct (expanded interest, R&D, overtime)
- How you plan exits (enhanced QSBS, estate exemptions)
💡 The Strategic Opportunity
The window to act is NOW. Many provisions have specific effective dates, construction start requirements, and phaseout schedules that demand immediate attention.
Properties closing in 2025 can benefit from 100% bonus depreciation immediately. Energy-efficiency deductions expire June 30, 2026.
Now Permanent
Doubled from $1.25M
Made Permanent
(Through 2029)
🏢 Critical Provisions for Real Estate Investors
1. 100% Bonus Depreciation — Permanently Restored
What Changed
100% bonus depreciation is BACK and PERMANENT for property acquired and placed in service after January 19, 2025.
What It Means for You
- Immediate full deduction on qualifying assets
- Significant cash flow improvement in year one
- Applies to new AND used property
- Qualified Improvement Property (QIP) fully deductible immediately
- Perfect for large renovations, tenant improvements, cost segregation
2. Business Interest Expense Limitation — More Deductible Interest
What Changed
Section 163(j) limitation now allows depreciation, depletion, and amortization to be added back (EBITDA vs. EBIT).
What It Means for You
- Deduct interest up to 30% of EBITDA (not just EBIT)
- Significantly higher deduction limits for leveraged properties
- More aggressive financing structures become tax-efficient
- Particularly valuable for commercial lessors
3. Opportunity Zones 2.0 — Rolling Designations & Enhanced Benefits
What Changed
- New 10-year rolling designations starting January 1, 2027
- 5-year gain deferral (vs. previous structure)
- 10% gain reduction after 5 years (30% for rural zones)
- 10-year hold = tax-free appreciation (unchanged)
- New map with stricter qualification criteria
What It Means for You
- Durable, long-term planning tool (not limited window)
- Strategic reinvestment opportunity for low-basis property sales
- Enhanced benefits for rural area investments
- Important: Requires capital gain to invest (not just cash)
4. Qualified Business Income (QBI) Deduction — Now Permanent
What Changed: The 20% QBI deduction for pass-through entities is now permanent (was set to expire after 2025).
What It Means for You:
- Up to 20% reduction in taxable income for qualifying businesses
- Pass-through entities remain competitive with C-corp structures
- Certainty for long-term entity structure planning
- Particularly valuable when combined with other deductions
5. SALT Cap Increase — Temporary Relief
What Changed: State and local tax (SALT) deduction cap increased to $40,000 for 2025-2029 (from $10,000), with annual 1% increases. Reverts to $10,000 in 2030. PTET workaround preserved.
What It Means for You:
- $40,000 cap for 2025 ($40,400 for 2026, etc.)
- Phase-down for MAGI over $500,000
- Pass-Through Entity Tax (PTET) elections remain valid strategy
- Especially meaningful in high-tax states (CA, NY, NJ, IL)
Low-Income Housing Tax Credit
Permanently Enhanced:
- State allocation ceiling: 9% → 12%
- Bond-financing threshold: 50% → 25%
- More affordable housing projects pencil out
REIT Taxable Subsidiary (TRS) Expansion
Effective 2026:
- Maximum TRS: 20% → 25% of assets
- Greater flexibility to diversify income
- Can internalize more value-added services
Enhanced QSBS Exclusions
For QSBS issued after July 4, 2025:
- Tiered exclusions: 50% (3yr), 75% (4yr), 100% (5yr)
- Per-issuer cap: $10M → $15M
- Gross asset threshold: $50M → $75M
Estate Tax Exemption Increase
Permanently Increased:
- Basic exclusion: $15M per person (2026)
- Up from $13.99M in 2025
- Indexed for inflation
- Stronger succession planning foundation
🏗️ Critical Provisions for Construction Contractors
1. Simplified Accounting for Residential Construction
What Changed
Contractors can now use simplified accounting methods (completed-contract or cash method) for residential construction contracts, including multifamily projects (condos, apartments). Available for first tax year beginning after July 4, 2025.
What It Means for You
- Delay revenue recognition until project completion
- Improved cash flow during long build cycles
- No longer forced into percentage-of-completion method
- Applies to contractors of ALL sizes (not just small businesses)
2. Overtime Income Deduction
What Changed: Temporary above-the-line deduction for qualified overtime compensation:
- Up to $12,500 (single) or $25,000 (joint)
- Phases out at MAGI of $150,000 (single) / $300,000 (joint)
- Must be separately reported on W-2s
- Effective 2025-2028 only
What It Means for You:
- Tax savings for labor-intensive operations
- Benefits your field employees directly
- Reduces effective cost of overtime
- New W-2 reporting compliance requirement
3. R&D Expensing — Immediate Deduction
What Changed: Domestic R&D costs can now be fully deducted immediately (retroactive to tax years starting January 1, 2025). Small businesses can elect to amend 2022-2024 returns.
What It Means for You:
- Full deduction for design innovation, process improvements, engineering design
- Potential refunds for past years (small businesses)
- Cash flow improvement from catch-up deductions
- Construction technology development qualifies
4. Qualified Production Property (QPP) — Full Expensing
What Changed: New 100% expensing for nonresidential real property used in production, manufacturing, or refining activities. Construction must begin between January 19, 2025, and December 31, 2028.
What It Means for You:
- Full immediate deduction for qualifying facilities YOU build and operate
- Important: Does NOT apply to typical lessor arrangements
- Elective provision
- Could reshape economics for owner-occupied industrial facilities
5. Section 179 Expensing — Doubled
What Changed:
- Maximum deduction increased: $1.25M → $2.5M
- Phase-out threshold increased: $2M → $4M
- Both amounts indexed for inflation
- Permanent
What It Means for You:
- Write off up to $2.5M per year
- Strategic flexibility for equipment purchases
- Particularly valuable in states that don't conform to bonus depreciation
- Can elect asset-by-asset (vs. bonus depreciation's class-wide)
Energy-Efficiency Deductions — Closing Window
Section 179D (Energy-Efficient Commercial Buildings)
- Deduction UNAVAILABLE for construction begun after June 30, 2026
- Current deduction: Up to $5.00/sq ft
- Qualifying: Energy-efficient improvements
Homebuilder Credit
- Terminated for homes acquired after June 30, 2026
- Act now for qualifying projects
Clean Energy Credits
- Wind/solar credits terminate for property placed in service after December 31, 2027
- Exception: Construction begins before July 4, 2026
The Strategic Planning Advisors Advantage
We Don't Just Know the Code—We Live It
Unlike typical tax preparers who file last year's returns and move on, we're active real estate investors and construction contractors ourselves. We understand your world because we operate in it daily.
Diagnose
- Deep-dive analysis of your returns, entities, pipeline
- Identify missed opportunities from 2024 and prior years
- Scenario modeling under new OBBBA provisions
Design
- 12-month proactive tax plan with quick wins
- Entity structure optimization
- Acquisition/disposition timing strategies
- Cost segregation and depreciation strategies
Deliver
- Implementation support, not just recommendations
- Year-round advisory, not annual scramble
- Monthly CFO insights for contractors
- IRS resolution if needed
Your Next Steps
Option 1: Strategic Tax Blueprint Session
90-minute deep-dive where we:
- Review your 2024 return and current structure
- Identify immediate OBBBA opportunities
- Model 2025 scenarios under new law
- Provide written action plan with priority timeline
Investment: $1,500 (credited toward Annual Service Plan if you engage)
Option 2: Annual Service Plan (ASP)
Comprehensive proactive planning including:
- Quarterly tax planning sessions
- Annual return preparation (personal + entities)
- Entity structure and compensation design
- Year-round advisory access
- Cost segregation analysis (as applicable)
- OBBBA compliance and optimization
Pricing: Custom based on entity complexity and portfolio size
Option 3: 2025 Tax Bill Quick Assessment (Complimentary)
30-minute consultation to:
- Discuss your current situation
- Identify top 3 OBBBA opportunities for your profile
- Determine if comprehensive planning makes sense
No obligation. Just clarity.
Schedule Your Free AssessmentFrequently Asked Questions
Many strategies provide immediate benefits in 2025. Some (like bonus depreciation and accounting method changes) can deliver six-figure deductions in the first year. The key is acting now—properties closing in 2025 can benefit from 100% bonus depreciation immediately.
We specialize exclusively in real estate investors and construction contractors. If your current CPA isn't proactively bringing you OBBBA strategies, you're likely leaving money on the table. Many of our clients keep their existing CPA for compliance and use us for proactive planning—we can coordinate seamlessly.
We routinely clean up multiple years of unfiled returns while simultaneously building a forward-looking strategy. Being behind doesn't disqualify you—it makes proactive planning even more urgent.
Yes—nationwide. We're a remote-first firm serving investors and contractors across the U.S. We work with clients in California, New York, Florida, Texas, and throughout the country.
Tax preparation looks backward (filing last year's return). Tax planning looks forward (structuring this year and beyond to minimize taxes). The OBBBA creates planning opportunities that annual compliance alone won't capture. Most CPAs do preparation; we do strategic planning.
You're ideal if you:
- Own real estate (rental properties, STRs, commercial, land)
- Operate a construction or contracting business
- Have multiple entities or complex structures
- Feel like you're paying too much in taxes
- Want a proactive partner, not just a return preparer
- Are open to implementing strategies, not just hearing ideas
The Cost of Waiting
Every day you delay implementing OBBBA strategies costs you:
- Lost depreciation on properties that could be closing now
- Missed elections that must be made on timely-filed returns
- Expiring deductions with construction start deadlines
- Opportunity cost from capital trapped in inefficient structures
- Competitive disadvantage vs. investors who act now
- Higher effective tax rates than necessary
Tax planning isn't an expense—it's an investment that typically returns 5-10x in first-year savings.
Take Action Now
Schedule Your Complimentary 30-Minute 2025 Tax Bill Assessment
Frank Alcini, CPA, CGMA, CITP, CFE
Lori Alcini, EA
Strategic Planning Advisors LLC
Proactive Tax Strategy • CFO Insight • IRS Resolution
Our team of experts is dedicated to helping individuals and businesses achieve financial success.
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Strategic Planning Advisors, LLC provides tax advisory, CFO, and IRS resolution services.
Information provided on this site is for educational purposes only and does not constitute formal tax, legal, or investment advice. Please consult your advisor before making financial decisions.
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