Turn a Rental into a Tax Writeoff

Why Consider Investment Property Before Year-End ?

If you're a high-earning tech professional with salary, RSUs, and bonuses, real estate can be one of the smartest tax strategies available to you. With bonus depreciation and accelerated write-offs, buying an investment property doesn’t just build long-term wealth — it can reduce your taxable income this year.

What Is Bonus Depreciation?

Traditionally, the cost of a rental property is deducted over many years (27.5 years for residential real estate). Bonus depreciation allows certain parts of the property — like appliances, fixtures, carpet, technology features, and land improvements — to be written off immediately, creating a large first-year tax deduction.

Why Buy Before the End of the Year?

Even if you don’t do any renovations or upgrades right away, simply purchasing an investment property and placing it into service before year-end means you can:

• Claim first-year depreciation

• Potentially use a cost segregation study to accelerate deductions

• Offset high-income and stock-based compensation

• Keep more of your income in your pocket now vs. paying it to taxes

For example:
A $750,000 rental purchase could generate roughly $100,000 in first-year deductions — saving a high-income earner around $40,000 in taxes. That’s without doing any renovations.

Why Tech Earners Benefit Most

If you're in tech, you typically face:

✅ High W-2 income
✅ Stock vesting events
✅ Bonus income
✅ Limited tax deductions

Real estate offers a proven path to reduce taxes while building long-term wealth.

Bottom Line

Buying an investment property before the end of the year can be a strategic move to:

• Lower your taxable income

• Increase cash flow

• Build passive wealth

• Create long-term financial freedom

Speak with a CPA and explore options now — timing matters. Do get in touch if you want to know where to invest!