📈 How the New Tax Law Supercharges Vacation Home Co-Ownership

Hi Friends,
Whether you love or hate the new “One Big Beautiful Bill Act,” one question keeps popping up:

“How does this affect vacation homes co-owned through an LLC?”

Short answer: It’s a game changer. Here’s what you need to know:

1. What Changed?

100% Bonus Depreciation is Back!
Your LLC can now write off the full cost of qualifying items (like appliances, furniture, HVAC, some landscaping, and even closing costs) in the year you buy them.

• Applies to properties held as investments or rentals.

• Deductions are passed through to you via K‑1s.

2. Old Law vs. New Law: See the Difference

No more phase-out—100% is here to stay (for now).

3. How Does This Work in Real Life?

Example:
Let’s say 8 friends form “Beachside LLC” and buy a vacation home for $800,000. They spend $160,000 on upgrades and furnishings.

• With 100% bonus depreciation, the full $160,000 is deductible in year one.

• Each owner (1/8th share) gets a $20,000 deduction on their K‑1.

• If you’re in the 35% tax bracket, that’s about $7,000 in first-year tax savings.

4. Other Perks in the Bill

• No Social Security tax on rental income from LLCs

• Bigger Section 179 deductions for improvements

• Shorter capital gains holding period for LLC-owned properties

5. What Should Co-Owners Do Next?

• Move fast: You lock in deductions when the property is placed in service this year.

• Track every expense: Furniture, appliances, closing costs, landscaping—keep receipts!

• Use an LLC: With a real operating agreement and rental intent so that deductions flow to each co-owner.

Bottom Line

With 100% bonus depreciation and new tax perks, co-owning a vacation home through an LLC just got a serious upgrade.

Want to see how this could work for you?
Reply to this email and I’ll run a sample scenario (with a K‑1 example) for your situation.

—Doug

P.S. This isn’t tax advice—I’m not a CPA or tax advisor. Every owner’s situation is different, so talk to a qualified tax pro before making decisions. If you need a real estate-savvy CPA, I’m happy to recommend one!

Ready to get started and form an LLC as a group?
Plum is offering a 50% discount on our PlumShare Operating Blueprint from now until the end of July 2025. Discount code: VACATION50

Featured Property: “The Barn” -
TN Mountain Views, a Modern Build

Modern mountain luxury meets smart investment! This stunning 2-bedroom retreat features breathtaking views, an indoor heated pool, and sleeps 12 guests comfortably.

Key Highlights

• $165,000 per share (10 total shares) - 5 weeks/year usage

  • $40,000 Down per share 

• $920/month expenses (includes financing)

• $430/month projected income per share after expenses

• Indoor heated pool + hot tub - year-round enjoyment

• Two private king bedrooms - with ensuite bathrooms

• Prime location - 25 minutes to Gatlinburg, 27 to Pigeon Forge

• Luxury amenities - shuffleboard loft, outdoor fire table, mountain views

• Short-term rental approved - maximize your investment potential

Why This Property Rocks

The Barn combines the best of both worlds: a personal mountain escape AND a cash-flowing investment opportunity. With new tax advantages for co-owned LLCs, you can enjoy a luxury getaway while building wealth through rental income and depreciation benefits.

Ready to own your slice of the Smokies?
Only 9 shares remaining - don't miss this mountain paradise opportunity!

Previous Properties:

• Madeira Beach, FL

• Navarre Beach, Florida

• Tulum, Mexico

• St. George Island, Florida

• North Topsail Island, North Carolina

• Bald Head Island, North Carolina

Doug + The Plum CoOwnership Team

P.S. Want to take the next step? Here are three easy ways to get more out of Plum:

1. Got a question or just want to say hey? Reply to this email or message me on Linkedin.

2. Curious about buying or selling a share? Book a call with me here

3. Just want to browse? Check out the latest listings on the Plum Marketplace