High-profile real estate investor Grant Cardone has called on President Trump to extend the concept of bonus depreciation to homeowners.
During his speech before the World Economic Forum in Davos, Switzerland, on Wednesday, Trump briefly touched on whether homeowners should be eligible for bonus depreciation, a yearly income tax deduction that recovers certain property costs over a specific period of time.
“The crazy thing is a person can’t get depreciation on a house, but when a corporation buys it, they get depreciation,” Trump said. “Okay, here’s something we’re gonna have to think about.”
The Davos speech was the first time that Trump publicly raised the subject, which was not among the various proposals publicly floated in the administration’s pursuit of affordable homeownership.
Depreciation can be claimed for business or income-producing rental property, but not for primary residences except if the home also involves business operations. In two posts on X, Cardone called on the president to act on this idea.
“Extending Bonus Depreciation to home owners would create a massive boom in housing,” Cardone wrote. “This would provide home owners with same benefits, institutions take advantage of everyday.”
In a second posting, Cardone said he “floated this concept to administration a week ago” and the president liked the idea. He also offered a case study of how it would work using a $500,000 home.
“This would create the biggest house boom in American history & do more for home owners than even lowering mortgage rates,” Cardone added.
