We recently had the privilege of hosting CPA and tax strategist Peyton Gillis on Buyers Club Live, and he didn’t disappoint. If you’ve been hearing buzz about the “Big Beautiful Bill” (aka the OBBA or OB3) and wondering what it actually means for you as a real estate investor—this one’s for you. The bill was passed just a few weeks ago, and while it covers a lot of ground, Peyton focused on the key provisions most likely to affect real estate investors, flippers, and business owners alike. Here’s a breakdown of the major takeaways from Peyton’s presentation and how they could impact your bottom line.
CPA Peyton Gillis broke down what this means for investors using BRRRR loans, short-term real estate loans, or any kind of real estate investment loan strategy.
Let’s break down the biggest takeaways—especially if you’re using hard money lenders, private money lending, or growing your business in the St. Louis real estate market.
1. 100% Bonus Depreciation is Back — And Permanent
If you’re holding rentals or using the BRRRR method, this is huge.
The bill brings back 100% bonus depreciation permanently. That means if you get a cost segregation study done on a rental, you can write off a significant portion of your building components upfront.
Buy a house for $500K Allocate $100K to flooring, cabinets, appliances Deduct that $100K in Year 1 That’s real estate flip financing made smarter
SEO phrases used:
bonus depreciation, hard money for rentals, real estate investment loan, BRRRR loans, hard money loan for rental property, hard money lenders for real estate investors
2. QBI Deduction is Now Permanent
If you’re doing fix and flips, wholesaling, or running a real estate business—this is your 20% off coupon from Uncle Sam.
The Qualified Business Income (QBI) deduction is now permanent for LLCs, S-Corps, and sole proprietors. That means 20% of your income from flipping houses or property management is tax-free.
Pro tip for S-Corp owners: Talk to your CPA about how much you pay yourself in salary vs. distribution—this impacts your QBI savings.
3. SALT Deduction Cap Increased + PTE Credits Still Available
If you’ve been capped at $10K for your state and local tax (SALT) deductions, that limit just quadrupled to $40,000. Combine this with Missouri’s Pass-Through Entity (PTE) credit and you could see serious reductions in taxable income.
4. Missouri May Eliminate Capital Gains Tax
Real estate investors in Missouri, take note: Missouri is on the verge of eliminating state capital gains tax.
If you’re planning to sell a property, you may only owe federal capital gains, not state. That could make 1031 exchanges less necessary.
5. Vehicle Loan Interest Now Deductible (2025–2028)
Planning to upgrade your contractor truck or drive to more house rehab loan projects? For vehicles purchased between 2025–2028, you can deduct up to $10,000/year in loan interest—even for personal vehicles.
6. 1099 Threshold Raised
Starting in 2026, you’ll only need to issue 1099s for contractors paid $2,000 or more, up from $600. If you’re hiring roofers, GCs, or flooring installers, this cuts the admin down.
7. Overtime and Tips Now Deductible
If you or a spouse works a W-2 job with tips or overtime, part of that income is now deductible—helping reduce your overall tax liability.
8. Trump Account for Newborns
Have a baby between 2025–2028? The government will start a $1,000 account for your child—tax-free growth, plus you can contribute up to $5K annually. Perfect if you’re building generational wealth through real estate investing.
9. $2,000 Charitable Deduction (Even with Standard Deduction)
Give back and get rewarded—now you can deduct up to $2,000 in charitable donations even if you take the standard deduction.
10. Health Savings Accounts Expanded
Health Savings Accounts (HSAs) just got more flexible. If you’re self-employed as a private lender, flipper, or real estate entrepreneur, HSAs now cover more plan types and more expenses.
Final Thoughts for Real Estate Investors
The Big Beautiful Bill is packed with opportunities to reduce taxes, increase cash flow, and scale your real estate business faster.
Whether you’re using hard money lenders in St. Louis, building a rental portfolio, or scaling up fix and flips, now is the time to strategize with a real estate-savvy CPA.
Bonus depreciation QBI savings SALT and PTE deductions Capital gains cuts in Missouri
…these tools give investors using short term real estate loans or private money lenders for real estate a massive edge in 2025 and beyond.
Looking for someone who knows real estate inside and out?
Payton Gillis, CPA based in Lake St. Louis, is a trusted Buyers Club vendor. You’ll find his info on our Buyers Club Vendor Directory.
Want Help Funding Your Next Deal?
Whether you’re flipping a house or refinancing a rental, FasterFunds Lending is your go-to hard money lender in St. Louis and O’Fallon, MO. We fund real investors doing real deals—fast. Give us a call at (636) 223-426
