Smart Moves TO MAKE Before December

Why Now is the Time to Think Like a Real Estate Investor

Now’s the time to think like an investor. From tax strategies to smart upgrades, the decisions you make before year-end can have a big impact on your bottom line. Let’s talk about how to make your next move a smart one.

Here are three smart angles to consider before year-end:

1 - Bonus Depreciation is Shrinking

One of the most powerful tax advantages for real estate investors - bonus depreciation - is continuing to phase out. In 2023, the deduction allowed investors to write off 80% of qualifying property improvements (like appliances, flooring, or HVAC systems) in the first year. That dropped to 60% in 2024, and it’s set to fall again to 40% in 2025 and 20% in 2026.

That means if you’re thinking about purchasing a rental or making significant upgrades, moving before December 31 could allow you to capture more of that upfront tax benefit - helping offset income and improve your cash flow.

2 - Now is Prime Time for a 1031 Exchange

If you’ve sold an investment property (or are planning to) you may be able to defer capital gains taxes through a 1031 exchange, which allows you to reinvest the proceeds into a like-kind property. But the clock starts ticking as soon as you close: you have 45 days to identify a replacement and 180 days to close.

Starting the process before year-end helps you avoid a rushed timeline, especially if you want to take advantage of early 2025 inventory or work around holiday season delays.

3 - Rebalance for 2025 and Beyond

With Central Ohio’s rental market still strong, and new developments like Anduril’s move into Pickaway County generating buzz, it may be time to review your portfolio. Are your properties performing the way you hoped? Is it time to trade up to multi-units? Or diversify into a different neighborhood or asset type?

Thinking strategically now can help you lock in gains, minimize your tax liability, and set yourself up for a strong start in 2025.

Ready to explore what’s possible?
Whether you’re already a seasoned investor or just wondering where to begin, I’d be happy to talk through your goals and help you map out a smart plan—before the year slips away. Let’s connect!

📞 614-975-8370 | 📧 teresakenney@kw.com | 🌐 teresakenneyrealty.com