Recent federal tax reforms favor real estate investors, especially in short-term rentals, by allowing 100% bonus depreciation on property costs, enabling large upfront tax write-offs. The SALT deduction increase benefits primary homeowners. The 20% qualified business income deduction for LLC-held properties is now permanent. Short-term rentals offer more flexibility in using losses against active income. Investors should limit personal use to maximize deductions and consider properties in tourist, business, or contract-worker hubs.
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