Real estate investors just got some lasting good news: the recent changes to the Trump Tax Bill have made key real estate tax breaks permanent. From the powerful 20% Qualified Business Income (QBI) deduction to enhanced depreciation rules, these updates solidify real estate as one of the most tax-advantaged investments in the U.S.

And for investors eyeing Florida’s Scenic Highway 30A, these incentives can make an already exceptional market even more appealing — both for short-term rental income and long-term appreciation.

What Changed?

1. Permanent 20% QBI Deduction for Real Estate

• Real estate investors can now permanently deduct 20% of qualified property income, effectively reducing the top federal tax rate from 37% to 29.6%.

• This applies to qualifying real estate activities, giving investors an enduring, built-in tax advantage.

2. 100% Bonus Depreciation Restored

• Qualified property — such as renovations, improvements, and equipment — can now be fully expensed in the year it’s placed in service (beginning in 2025).

• This accelerates deductions and reduces taxable income immediately, boosting early cash flow.

3. Opportunity Zones Made Permanent

• Investments in designated Opportunity Zones now have no expiration date.

• This program allows capital gains deferral and potentially tax-free appreciation after a 10-year hold — a huge win for long-term investors.

4. Condo Accounting Flexibility

• Residential condo developers can now use the completed contract method over a three-year window instead of percentage-of-completion accounting, creating better alignment between cash flow and taxable income.

5. SALT Deduction Cap Increase

• The state and local tax (SALT) deduction cap is rising to $40,000 for eligible taxpayers, with gradual phaseouts for high earners — a favorable shift for investors in high-tax states looking to buy in Florida.

Who Qualifies for the QBI Deduction?

The QBI deduction applies to:

• Real estate investors operating as LLCs, S Corporations, Partnerships, or Sole Proprietors

• Rental property owners, developers, and operators

• Holders of REIT dividends and income from publicly traded partnerships

Why 30A is an Even Smarter Investment Now

With its sugar-white beaches, turquoise waters, and strong year-round rental demand, Florida’s 30A corridor is already a dream for real estate investors. The new tax benefits simply supercharge the returns:

• Rental Income Potential: Luxury vacation rentals in areas like Rosemary Beach, Seaside, and Inlet Beach command premium nightly rates, often generating six-figure annual income.

• No State Income Tax: Florida’s investor-friendly tax climate, combined with the QBI deduction, makes your income go further.

• Appreciation Trends: 30A real estate has seen consistent long-term value growth, driven by limited supply and high demand from both domestic and international buyers.

• Lifestyle Perks: Many investors use their property for part of the year, enjoying the 30A lifestyle while their investment works for them the rest of the time.

The Bottom Line

These permanent federal tax incentives make real estate one of the most attractive investments available — and when you combine them with the rental strength, appreciation potential, and lifestyle appeal of 30A, you have a compelling case for action.

If you’ve been considering a 30A property for your portfolio, let's explore your options. The tax savings alone could add tens of thousands to your annual bottom line — and the lifestyle benefits are priceless.