Myrtle Beach Real Estate Tax Benefit Makes 2025 the Best Time To Invest

Accelerated depreciation is back for 2025! Find out how this powerful tax rule can let you deduct the full cost of a property in the first year.

Why should you buy an investment property in Myrtle Beach this year? The answer ties back to a big change that came with a bill passed earlier this year. One of the most impactful updates for real estate investors was the return of something called bonus depreciation, also known as accelerated depreciation. Let me tell you what it’s all about and why it matters.

Key tax benefit: Bonus depreciation. Normally, depreciation is spread out over decades. For residential property, it takes 27.5 years, and for commercial property, it takes 40 years. With the current rules, you can claim the full write-off in the first year. That immediate tax break is why investors are paying attention.

To put it simply, think of a toy your child plays with every day. Over time, it wears out, and the IRS views real estate in a similar way. Accelerated depreciation speeds up that process and lets you take all the deductions right away instead of waiting years.

Supersizing the benefits. There’s also a way to make the numbers even bigger through what’s called a cost segregation study. That’s a more detailed breakdown of a property’s components, and it’s another tool investors are looking at to maximize their first-year write-offs.

Accelerated depreciation can be a smart way to cut down your tax bill.

Real estate professional status. Another layer to consider is whether you qualify as a real estate professional. The IRS sets that bar at 750 hours a year, and about half of your working time to real estate. Meeting that standard allows you to use the deductions to offset all types of income, even W-2 wages.

If you don’t qualify, the benefit still applies, but only against passive income such as rental profits or other investments. To see how powerful this can be, I spoke with someone who bought a $2 million oceanfront property in Surfside and used the rules to save about $400,000 in taxes.

Who should pay attention. This isn’t just for luxury buyers. If you’re a business owner or someone with a high income who’s writing big checks to the IRS, accelerated depreciation can be a smart way to cut down your tax bill.

The main catch is timing. These benefits are only available if the deal is closed in 2025, which means the window of opportunity is limited. Before moving forward, it’s a must to talk with your CPA or tax advisor to be sure you understand how it applies to your situation.

That’s why 2025 is shaping up to be such an interesting year for real estate investors. With accelerated depreciation back, the tax advantages are significant—but only if you move before the clock runs out. If you need any help, don’t hesitate to reach out to me at (843) 251-2693 or send me an email at greg@gregsisson.com.  I look forward to hearing from you!