Real Estate Rookie - Episode Summary

Podcast: Real Estate Rookie (BiggerPockets)
Episode: This New Bill Could Double Your Tax Savings in 2025
Date: September 17, 2025
Hosts: Ashley Kehr & Tony J. Robinson
Guests: Amanda Han & Matt MacFarland (Keystone CPA)

Episode Overview

This episode features real estate CPAs Amanda Han and Matt MacFarland breaking down the impact of the recently enacted “One Big Beautiful Bill”—also called “the big beautiful tax bill”—on rookie real estate investors. They discuss its wide-ranging benefits, particularly for new investors, homeowners, W2 earners, and side hustlers. The episode is packed with actionable tax strategies and clear explanations for newcomers, highlighting both opportunities and common pitfalls to avoid.

Key Discussion Points & Insights

1. What Is the "Big Beautiful Tax Bill"?

• Overview: Broad legislation extending beyond taxes, but with particularly generous new features for real estate investors, W2 workers, parents, and homeowners.
• Major Benefits: Dramatically increased deductions for property taxes, expanded bonus depreciation (now at 100%), and extensions of qualified business income deductions.
• Why It Matters Now:

  “For the first time in many years, we are seeing a bill … that benefits not just real estate investors or large corporations, but it actually benefits a lot of people … average W2 earners, homeowners, … parents as well.”
  (Amanda, 00:57)

2. How Does the Bill Help the Rookie Investor?

• Primary Residence Deductions:
  • Quadruples (4x) the deductible property tax amount for primary homes, including those used for house hacking (e.g., one unit is owner-occupied, another is rented).
• Bonus Depreciation:
  • Raised from 40% to 100%.
  • New investors can potentially double or more their tax write-offs in the first year of acquiring a property.

  “After the one big beautiful bill, your tax savings may have more than doubled.”
  (Amanda, 10:32)

3. Key Provisions & Highlights (04:17-07:58)

• Depreciation Expenses: Biggest individual benefit, especially relevant to new property owners.

• Qualified Business Income (QBI) Deduction:

  • Extended at 20%, letting active entrepreneurs like agents or flippers exclude one-fifth of their business profit from income taxes.
  • Also applies to profitable rental portfolios.

  “A realtor could make a hundred thousand dollars and only have to pay tax on $80,000.”
  (Matt, 05:18)

• Tax Credits for Parents & Interest Write-Offs:

  • Additional credits for parents.
  • For the first time, deduct interest paid on personal vehicles (with income limits).
  • Lower taxable income from real estate often unlocks these other credits.

4. Deep Dive: Depreciation, Cost Segregation, and Bonus Depreciation (11:45-14:48)

• Depreciation Explained:
  • Non-cash “paper” expense, allowing owners to offset rental income and potentially show zero taxable rental profit, even with positive cash flow.
• Accelerating with Cost Segregation:
  • Breaking down a property’s components (e.g. plumbing, electrical) for faster write-offs.
  • Don't buy a study without consulting your CPA—timing and strategy are critical.
• Example Calculation (10:32):
  • $100,000 building: Prior bill = $15,000 first-year depreciation; Now = $30,000 or more.

5. Offsetting W2 Income with Real Estate Losses (14:48-16:48)

• $25,000 Loss Rule:
  • Investors earning under $100k can often use up to $25k of rental losses to reduce their W2 income.
• High-Income Limitations:
  • Over $150k income? Losses are restricted unless the taxpayer or spouse qualifies as a real estate professional.

6. Real Estate Professional vs. Short-Term Rental Loophole (18:57-22:29)

• Long-Term Rentals:

  • To apply paper losses against W2 income, you must:
    1. Spend 750+ hours/year in real estate,
    2. Spend more time in real estate than other jobs,
    3. Materially participate in operations.
  • Tough for full-timers, easier for a non-working spouse (“the marriage loophole”).

  “If you can't be a real estate professional, then marry one.”
  (Amanda & Matt, 17:28-17:30)

• Short-Term Rental "Loophole":

  • No real estate professional status needed.
  • Just meet material participation (usually 500+ hours/year per property, or 100+ hours if more than anyone else).
  • Easier for high-income earners to use losses on short-term rentals to offset W2 income.

  “If you’re telling [your CPA] about the short term rental loophole and they mention anything about real estate professional status, that means you're working with the wrong person.”
  (Amanda, 22:29)

7. Red Flags & Common Rookie Mistakes (23:42-25:30)

• Common Errors:
  • Acting on “hot tips” from social media without CPA guidance.
  • Misapplying strategies, e.g., cost segregation when it offers no real-year benefit.
  • Waiting until tax season to strategize.
• IRS Withholdings:
  • The IRS isn’t automatically updating withholding tables, so adjust with your CPA to avoid giving the IRS an “interest-free loan.”

8. Action Steps for Year-End Tax Planning (32:46-37:40)

• Start Now:
  • Meet with your CPA before December, not during or after tax season.
• Key Steps:
  • Review your income, planned acquisitions/dispositions, and entity structures.
  • Decide if you should accelerate purchases or improvements to maximize deductions before year-end.
  • Review and potentially adjust withholdings.
• Tax Planning for All:
  • It’s not about how much you make or own—it’s about your plan and your goals.

  “It's not about how much income or how many properties. It's about what is your plan in real estate?”
  (Amanda, 36:22)

Notable Quotes & Memorable Moments

• Amanda, on broad impact:

  “We are seeing a bill … that benefits not just real estate investors or large corporations, but … W2 earners, homeowners… people who are looking to purchase cars and even parents.” (00:57)

• Matt, on QBI deduction:

  “A realtor could make a hundred thousand dollars and only have to pay tax on $80,000.” (05:18)

• Amanda, on short-term rental loophole:

  “If you're telling [your CPA] about the short term rental loophole and they mention anything about real estate professional status, that means you're working with the wrong person.” (22:29)

• Tony, on rookie mindset:

  “We can't effectively strategize our taxes looking backwards… it should have gone the other way around.” (35:30)

• Amanda, on when to start planning:

  “It's not about how much income or how many properties. It's about what is your plan in real estate?” (36:22)

• Humor, on “marrying into” tax benefits:

  “If you can't be a real estate professional, then marry one.” (17:28-17:30)

Timestamps for Important Segments

• Main Bill Overview & Its Stakeholders: 00:46–02:43
• Top Bill Features (Depreciation, QBI, Credits): 04:17–07:58
• Depreciation Calculation Examples: 10:32–11:45
• Deep Dive: Depreciation vs. Cost Segregation: 12:03–14:48
• Offsetting W2 with Real Estate Losses: 15:09–16:48
• Long-Term vs. Short-Term Rental Loopholes: 18:57–22:29
• Red Flags in Tax Planning/CPA Competency: 22:29–24:52
• Withholdings & Planning for Refunds: 24:52–26:23
• When & How to Take Year-End Action: 32:46–36:22
• Tax Planning Is for Everyone: 36:22–37:40

Final Takeaways

• This new bill offers unprecedented tax benefits to both rookie and experienced investors—if they start planning now.
• Proactive, year-round conversations with an experienced, real-estate-savvy CPA are crucial.
• Don’t take advice blindly from social media or DIY every maneuver—strategy is personal.
• New rules make house hacking, short-term rentals, and QBI deductions more powerful than ever for reducing taxable income, unlocking credits, and accelerating portfolio growth.

Resource Links:

• keystonecpa.com (Amanda & Matt’s firm)
• Instagram/YouTube: AmandaHanCPA
• BiggerPockets bookstore for Amanda & Matt's books