OBBBA & Real State

What’s New in Taxes

The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, includes major tax benefits for those earning rental income whether you're an Airbnb or Brbo host or a traditional property owner. If you're in the rental business, these changes could help you legally reduce your tax bill and improve cash flow fast. 

How Does It Affect Me?

1. 100% Bonus Depreciation Made Permanent 

You can now deduct 100% of the cost of eligible improvements and assets in the same year they are placed in service like appliances, furniture, equipment, or interior renovations if acquired after January 19, 2025, and with a useful life of 20 years or less. 
This bonus depreciation is now permanent and will no longer phase down year by year. 

Example: If you spend $10,000 upgrading your Airbnb or purchasing new appliances, you may deduct the full amount in that year’s tax return, even if you don’t itemize other deductions. 

2. Enhanced Interest Deduction (EBITDA Method) 

A favorable shift for property owners and big businesses is restoring the EBITDA-based calculation for the Section 163(j) interest expense limitation. 

Previously, the rule required using EBIT (earnings before interest and taxes), which reduced deductible interest by excluding depreciation and amortization. With the return to EBITDA (earnings before interest, taxes, depreciation, and amortization), Adjusted Taxable Income (ATI) increases, allowing for greater interest expense deductions. 

Example: If you pay $12,000 in mortgage interest on a rental property, you may now deduct more of that amount, reducing your yearly tax liability. 

3. Permanent 20% Deduction (Section 199A / QBI) 

OBBBA makes the 20% deduction on pass-through business income (like LLCs and S Corporations) permanent. This also applies to dividends from REITs (Real Estate Investment Trusts). 

This change gives long-term clarity to small real estate investors and Airbnb hosts. 

Example: If your LLC earns $80,000 in net rental income, you could deduct $16,000 before calculating federal income tax. This benefit applies even if you don’t itemize deductions. 

4. Full Deduction for State and Local Taxes (SALT) 

OBBBA keeps the full deduction for state and local property taxes (SALT) related to rental properties. That means your annual property tax can now be fully deducted, with no cap. 

Example: If you pay $7,000 in property taxes for a Houston rental home, you can now deduct the full amount—unlike before when deductions were limited. 

Why Does It Matter?

These new rules help you recover your capital faster, legally reduce your tax burden, and reinvest in your current properties or new opportunities. 

Now you can: 

• Fully deduct major upgrades or renovations this year 

• Lower your taxes on loan interest payments 

• Claim a 20% deduction on net rental income 

• Deduct local and state taxes with no cap 

All of this is possible even if you don’t have a big company—just a simple structure like an LLC. 

Jambrina CPA Helps You Maximize These Benefits

If you own rental properties or run an Airbnb business, you could benefit significantly from these changes. At Jambrina CPA, we guide you step-by-step: 

✔️ Decide whether to claim 100% depreciation this year or spread out the expense 
✔️ Apply the interest deduction and QBI rule correctly 
✔️ Organize your tax strategy and protect your cash flow 

Let us help you turn new tax law into business growth. 

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