Tiffany's Market Minute Update: OBBBA's Impact on Investors - September 2025 Edition
TIFFANY'S MARKET MINUTE UPDATE | SEPTEMBER 2025
Bonus Depreciation & Beyond: OBBBA’s Impact on Investors
The One Big Beautiful Bill Act (OBBBA), signed into law this summer, is already reshaping the investment landscape. For multifamily investors, it represents the most favorable tax framework in years — offering powerful new ways to improve cash flow, enhance returns, and unlock opportunities.
Key Benefits for Multifamily Investors
1. 100% Bonus Depreciation Returns (Permanently)
The biggest headline: OBBBA permanently restores 100% bonus depreciation on assets with a useful life of 20 years or less — everything from renovations and HVAC systems to roofing and parking lots. For investors, that means significant portions of a property’s cost basis can be deducted immediately rather than over decades, creating stronger year-one cash flow and improved IRR.
2. Cost Segregation Becomes Essential
Cost segregation studies, which break down properties into components like flooring, cabinetry, and landscaping, are now more powerful than ever. Even without heavy renovation, allocating purchase price across shorter-life assets can unlock massive upfront deductions.
3. Affordable Housing Gets a Boost
The Low-Income Housing Tax Credit (LIHTC) just got more accessible. OBBBA reduces the state bond financing requirement from 50% to 25%. This makes affordable housing deals pencil out more often and opens new doors for investors looking to combine impact with returns.
4. Other Investor-Friendly Wins
• The 20% Qualified Business Income Deduction (QBI) for pass-throughs like LLCs is now permanent.
• The mortgage interest deduction (up to $750K) remains permanent.
• 1031 exchanges stay untouched — preserving one of the most powerful tools for tax-deferred wealth building.
• Section 179 expensing expands in 2025, allowing deductions up to $2.5M, with a phase-out at $4M.
📊 Why It Matters Now
With elevated borrowing costs still slowing deal activity, these tax advantages bring meaningful incentives back into the market. They allow investors to capture value upfront, reduce tax liability, and build stronger downside protection into underwriting. Affordable housing projects, in particular, now have a clearer path to profitability thanks to LIHTC enhancements.
💡 What We’re Doing at LuxEquity
At LuxEquity Capital, we’re already:
• Incorporating cost segregation analysis into every acquisition.
• Prioritizing value-add renovations that qualify for immediate write-offs.
• Evaluating LIHTC-eligible projects that align with our mission to improve communities while creating strong investor returns.
The OBBBA represents more than tax relief — it’s a permanent shift in how multifamily investors can structure deals for maximum efficiency.
✅ Bottom line: For investors, this isn’t just about saving on taxes — it’s about enhancing cash flow, boosting long-term wealth, and creating opportunities in both traditional value-add and affordable housing markets.
📌 Timing is everything: Only assets placed in service after January 19, 2025 qualify.
💬Investor Takeaway:
“OBBBA just reshaped the tax landscape. With 100% bonus depreciation back and LIHTC expanded, the next wave of multifamily opportunities favors those who act quickly.”
Whether you’re eyeing a value-add play, considering an affordable housing project, or just want to strengthen your portfolio’s tax efficiency, now is the moment to position yourself.
To your next strong return,
-Tiffany Lundt
Founder & Managing Principal, LuxEquity Capital
🔔 P.S. If you found this helpful, forward to a friend or partner who’s watching the market too. Let’s build together.
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📅 Want to discuss how this impacts your portfolio? Let’s connect! Schedule a call with me.
🚨 Disclaimer: This newsletter is for informational purposes only and should not be considered tax, legal, or financial advice. Please consult with a licensed tax professional before making investment or tax-related decisions.
About Me: Tiffany Lundt’s passion for multifamily syndication stems from personal experience—she understands the impact that safe, quality housing can have on families. With nearly two decades of experience in commercial lending, she now employs her financial expertise to create investment opportunities that build wealth and strengthen communities. Her mission is to ensure that real estate success benefits both investors and the individuals who call these properties home. You can reach her at [email protected], schedule on her calendar or learn more at www.luxequitycapital.com.
Sources & Further Reading:
1. RSM US LLP. (2025). The One Big Beautiful Bill Act: Real estate & construction tax insights.
2. Cohen & Company. (2025). OBBBA Up Close: Tax Impact for Real Estate.
3. Partners Real Estate. (2025). Market Edge: OBBBA and CRE.
4. DHJJ. (2025). Bonus Depreciation and Section 179 Changes.
5. PKF O’Connor Davies. (2025). Real Estate Industry Impacts of the OBBBA.
6. Grant Thornton. (2025). The OBBBA and Potential State Tax Impact.
8. EisnerAmper. (2025). Opportunities and Enhancements for Real Estate in the OBBBA.
9. Thomson Reuters. (2025). Impact of the One Big Beautiful Bill Act.
