If you invest across international markets, US real estate likely remains on your radar due to its scale, liquidity and long-term appeal to global capital. Interest from overseas buyers remains significant, with foreign purchasers investing approximately $56 billion in US residential real estate between April 2024 and March 2025, representing a 33% increase from the previous year.
If you manage institutional assets, oversee a family office or evaluate opportunities for a multinational business, tax policy can influence how you assess potential returns. That reality became more important on July 4, 2025, when the One Big Beautiful Bill Act was signed into law. Among its most significant provisions, the legislation restored permanent 100% bonus depreciation for qualifying property acquired and placed in service after January 19, 2025.
If you are considering acquisitions in the United States, these changes deserve careful attention because they can affect your cash flow projections, investment models and overall portfolio strategy.
Why accelerated depreciation has returned to the spotlight
If you are evaluating an acquisition, understanding accelerated depreciation could have a meaningful impact on your financial projections. Here, cost segregation studies allow you to identify qualifying building components that can be depreciated over shorter recovery periods, which creates larger deductions during the early years of ownership.
As you compare opportunities across markets or property types, many advisors use a free bonus depreciation calculator to estimate the value of those deductions before a transaction closes. That analysis has become more relevant following the return of permanent 100% bonus depreciation.
If your investment strategy prioritizes cash flow, tax efficiency or capital preservation, these deductions can significantly influence how you evaluate a property’s long-term financial performance. In many cases, the ability to accelerate deductions can improve early-year returns, which gives you greater flexibility when allocating capital across a broader portfolio.
Understanding bonus depreciation and Section 179
As you review available tax strategies, you will likely encounter discussions about bonus depreciation vs Section 179. Although both provisions accelerate deductions, important differences exist between them: Section 179 includes annual limits and taxable income restrictions, whereas bonus depreciation generally applies more broadly to qualifying assets identified through a cost segregation study.
If your investment involves income-producing property held through an appropriate business structure, bonus depreciation often provides greater flexibility and larger deductions. These distinctions have become more important following the latest US tax reform legislation, which has prompted investors, advisors and financial institutions to revisit acquisition assumptions that were developed under previous depreciation schedules.
Ultimately, understanding those differences can help you make more informed decisions before capital is committed. A clear understanding of both provisions can also help you avoid structuring decisions that reduce the value of available tax benefits.
How foreign ownership structures can unlock value
If you are entering the American market, you will often encounter ownership structures designed to support legal, operational and tax planning objectives. Many foreign investors acquire property through US entities such as limited liability companies, corporations or partnerships, while specific structures vary according to investment goals and jurisdictional considerations.
Within those arrangements, a cost segregation study can identify qualifying assets including site improvements, specialized electrical systems, decorative finishes, parking facilities and numerous other building components. When those assets qualify for bonus depreciation, you can access larger deductions during the early years of ownership.
As a result, your after-tax cash flow can improve while your capital remains available for additional investments, operational needs or future expansion opportunities. That advantage can become increasingly valuable if you are pursuing an active acquisition strategy or managing multiple properties across different markets.
What the OBBBA means for cross-border investment planning
The legislation is commonly referred to as OBBBA and its impact extends well beyond domestic taxpayers. If you allocate capital internationally, tax treatment often becomes an important factor when comparing opportunities across multiple jurisdictions. Enhanced cost recovery provisions can therefore strengthen the attractiveness of the American market relative to competing destinations for investment.
At the same time, international investors should recognize that outcomes vary according to ownership structures, financing arrangements, residency status, treaty positions and reporting obligations. A deduction that delivers significant value in one situation can produce a very different result in another.
If you are evaluating cross-border opportunities, depreciation planning should form part of a broader strategy that aligns with your global business objectives. Careful coordination between tax advisors, legal counsel and investment teams can help you maximize available benefits while supporting long-term strategic goals.
Looking beyond tax savings alone
While the restoration of permanent 100% bonus depreciation has generated significant attention, your investment decisions should extend far beyond tax savings alone. Property quality, tenant demand, financing costs, geographic diversification, operational performance and long-term appreciation potential all remain critical considerations.
If you focus exclusively on deductions, you risk overlooking factors that often determine long-term success. The strongest opportunities typically combine favorable tax treatment with solid market fundamentals and disciplined asset management. International business leaders, finance professionals and global investors should also remember that FIRPTA obligations, treaty interpretations, withholding requirements and reporting rules can differ substantially between jurisdictions.
Looking ahead, before moving forward with a transaction, you should consult experienced cross-border tax counsel so your investment strategy aligns with both commercial objectives and applicable regulatory requirements.
Article received via email
