Episode Summary:
In this episode of Real Investor Radio, Craig Fuhr and Jack BeVier discuss various topics related to real estate investing, including the implications of the One Big Beautiful Bill, the importance of financial planning, and the benefits of bonus depreciation and opportunity zones. They also touch on the Housing Choice Voucher Program and the future of green energy mandates, providing insights into how these factors affect real estate investors.
Episode 95 Overview
A Surprising Benefit for New Parents
The episode opens with an unexpected highlight from the One Big Beautiful Bill: the introduction of the “Trump Account.” Starting in 2026, parents can receive a tax deduction to seed an account for a newborn. If they contribute $1,000 upfront and $100 monthly until the child turns 25, the account could grow to $1.45 million by age 60.
Although withdrawals are taxed as ordinary income, the long-term compounding power is undeniable. After all, small contributions can generate life-changing returns.
Bonus Depreciation Extended – Big News for Real Estate Investors
Above all, the bill’s extension of 100% bonus depreciation through 2029 offers a direct benefit to real estate investors. Jack explains how investors can use cost segregation studies to reclassify parts of a property into 5-, 15-, or 27.5-year categories.
Thanks to this bill, all property with a lifespan of 20 years or less qualifies for first-year 100% depreciation. This can translate into a $50,000+ deduction per rental, offering real, near-term tax relief. However, that depreciation will eventually be recaptured upon sale – some of it at ordinary income rates.
Even so, Jack emphasizes the present value of those deductions outweighs the delayed tax cost, especially for active real estate professionals.
Opportunity Zones Made Permanent
The One Big Beautiful Bill also makes Opportunity Zones (OZs) permanent, offering real estate investors a powerful tool to defer and eliminate capital gains. Jack shares his team’s strategy: selling rental properties throughout the year and reinvesting those gains into ongoing OZ projects.
By doing so, they avoid the administrative burden of multiple 1031 exchanges. Additionally, if they hold an OZ project for 10 years, all capital gains are completely eliminated. That’s not just tax deferral – that’s long-term wealth building.
QBI Deduction Preserved
The bill also preserves the 20% Qualified Business Income (QBI) deduction, which was set to expire in 2026. For investors structured as LLCs, S-Corps, or sole proprietors, this allows them to deduct up to 20% of net rental income – keeping more capital in their pockets.
Jack notes this deduction helps close the gap between pass-through entities and C-Corps, making LLCs more flexible and tax-efficient.
Section 8 Funding Remains Unchanged
At first, early drafts of the bill proposed slashing Section 8 voucher funding by 40%. However, the final version dropped that provision. Jack clears up the confusion and warns landlords not to panic – there are no major changes to the Housing Choice Voucher Program in the final bill.
Still, he notes the idea could resurface in future legislation, and landlords should stay informed.
Green Mandates Removed, But States May Step In
The bill repeals most federal green energy mandates for landlords. Requirements for EV chargers, solar panels, and heat pumps were scrapped – at the federal level. Nevertheless, states may still implement their own rules, especially in blue states like Maryland. For now, landlords have a temporary reprieve.
Final Thoughts
The One Big Beautiful Bill delivers real advantages for real estate investors – from bonus depreciation and QBI preservation to expanded Opportunity Zone flexibility. Although some provisions require careful navigation, the bill ultimately strengthens long-term investment strategies.
All in all, investors who understand and apply these tools can reduce tax exposure, reinvest more efficiently, and grow their portfolios with confidence.
