On July 4, 2025, President Trump signed the One Big Beautiful Bill Act (H.R. 1)—a monster tax package that quietly rewrites the playbook for rental-property investors. Two provisions jump off the page:
Turning a personal home into a rental now looks even smarter.
100 % bonus depreciation roars back in 2025.
Here’s how those changes translate into real dollars for landlords in Springfield, IL—and the action steps to take before the 2025 filing season.
1. Converting Your Former Home = Tax-Deduction Supercharger
Most homeowners still operate under the SALT (State-and-Local-Tax) cap: they can deduct only $10,000 of property + state income taxes on Schedule A. IRS
Flip that house into a rental and everything changes:
Item Personal Residence Rental Property
| Property-tax deduction | Capped at $10k | 100 % deductible (Schedule E) |
| Depreciation | None | 27.5-year straight-line on the structure— even if you bought the home 10 years ago |
| Repairs & management | No | Fully deductible operating expenses |
Translation: A typical $2,800 Springfield property-tax bill + $3,000 in annual repairs becomes ~$5,800 of brand-new write-offs once you lease the home.
2. Bonus Depreciation Is Back—All the Way Back
The bill restores 100 % bonus depreciation for qualified property placed in service after Jan 19, 2025. That means roofs, HVACs, appliances, flooring—even some landscaping—can be written off in year one instead of over 5–39 years. Alston & Bird
Why investors should care:
Big W-2 year? A $20k HVAC + $10k flooring upgrade can wipe out $30k of ordinary income next April.
Building a portfolio? Front-loading depreciation lets you scale faster while keeping cash free for the next down payment.
The phase-out is gone. Bonus depreciation had dropped to 60 % in 2024 and was headed to zero by 2027—until this reversal.
3. Rapid-Fire Action Steps for Springfield Investors
| Move | Why | When |
|---|---|---|
| Re-run “sell vs. rent” math on any home you plan to vacate. | Unlimited property-tax deduction + 27.5-year depreciation can crush capital-gains exposure. | Before listing with a Realtor |
| Schedule a cost-segregation study for large single-family or multifamily holds. | Identifies components (carpet, fixtures) eligible for 100 % bonus depreciation on Day 1. | Projects closing after 1/19/25 |
| Lock in fixed-rate financing under 75 % LTV. | Rising rates eat cash flow; fixed debt + new write-offs = stable returns. | Pre-purchase or at refi |
| Consult a CPA on passive-loss rules & 1031 timing. | Maximize how year-one losses offset active income and plan exit strategies early. | Q4 2024 to model 2025 impacts |
4. Why the Tax Code Keeps Favoring Real Estate
Lawmakers—regardless of party—lean on private capital to improve housing stock and local tax bases. The new bill even raises the SALT cap for personal residences to $40k through 2029 (phasing back to $10k thereafter) MarketWatch, but business property taxes were already uncapped. Add the restored 100 % bonus depreciation, and rental real estate remains one of the most tax-efficient wealth vehicles available.
Bottom Line
For Springfield investors, the One Big Beautiful Bill Act is a clarion call:
Keep that old house—don’t sell it.
Accelerate improvements after January 19, 2025, to harvest immediate write-offs.
Leverage professional management and tax planning to turn new deductions into long-term equity growth.
Because while headlines change, one truth holds: the U.S. tax code still loves landlords who play the game strategically.
Disclaimer: This post is for educational purposes only and is not tax or legal advice. Consult a licensed CPA or tax attorney about your specific situation before acting on these strategies.
