The case for the One Big Beautiful Bill and investing on 30A
The One Big Beautiful Bill (OBBB), signed into law on July 4, 2025, made permanent some of the most powerful real‑estate tax breaks in decades. If you’re eyeing a short‑term rental on Florida’s Emerald Coast—especially the coveted 30A corridor—here’s why now is your moment to buy, renovate, and write off like never before.
What you need to know
The OBBB restored and extended three headline benefits:
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100% bonus depreciation on qualified property placed in service on or after January 20, 2025 (furnishings, appliances, landscaping, even certain renovation costs).
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Permanent 20% QBI deduction for rental activities that meet the IRS’s material‑participation rules.
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Enhanced cost‑segregation opportunities, letting you break your purchase price into components with much shorter depreciation lives.
Why these breaks matter on 30A
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Massive first‑year write‑offs
Instead of waiting decades to recoup your spend, you can expense it all in year one—freeing up cash to reinvest in upgrades that let you charge premium nightly rates. -
Ongoing tax shelter
Actively manage your rental and slash up to 20% off your taxable net income every year. In a market where occupancy often tops 70%, that’s big savings. -
Stronger financing and faster equity
Lenders love properties with proven cash flow. By boosting your after‑tax cash, you’ll qualify for better loan terms and build equity faster as 30A values appreciate 5–7% annually.
Why now is the perfect time to buy on 30A
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Top‑tier rental demand
Coastal tourism and remote‑work trends keep STR occupancy above 70% year‑round, with premium nightly rates during shoulder seasons. -
Enhanced tax shield
With the OBBB in effect, early‑adopters capture the lion’s share of accelerated depreciation and QBI benefits before competition heats up. -
Rising property values
30A real estate appreciates 5–7% annually. Pair that with massive first‑year write‑offs and you lock in equity while deferring tax. -
Financing leverage
Better cash flow from tax savings improves debt‑coverage ratios and loan eligibility, letting you scale more aggressively.
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How to apply it
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Time your purchase or reno so “placed in service” dates fall on or after January 20, 2025.
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Track your participation (bookings, guest communications, marketing, maintenance) to meet QBI rules.
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Order a cost‑segregation study from a CPA or specialized engineer to itemize high‑depreciation assets.
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Bundle your upgrades—from furniture to landscaping—into that first tax year to capture 100% bonus depreciation.
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Check state conformity, since Florida fully honors these federal breaks, but other states may not.
Thinking of selling your current place to upgrade into a higher‑performing rental? Get an instant estimate via our home valuation tool. And whether you’re buying, selling, or both, our comprehensive guides for buyers and sellers have you covered.
Why you shouldn’t wait
Competition for 30A homes is fierce, and sellers know about these tax advantages (so prices may rise further). By locking in now, you not only capture the tax windfall but also get ahead of the next wave of buyers chasing the same benefits.
Talk to your CPA about the One Big Beautiful Bill, run the numbers on your 30A target property, and get ready to turn your beach‑house dream into a powerful, cash‑flowing reality. Now is the time.
