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.
The 250G and 500G Cap Cains Limit should be eliminated and REPLACED with a one time use every 5 years of a primary residence. Folks living in a home 30 years can exceed the 250/500 gain. They get nailed on tax. .
Can use once every 5 years ( is an example time frame – but I think fair).
I like those scenarios.
The capital gain tax on selling rental property should be reduced also i paid 65,000 extra in taxes for selling a property plus it triggered IRMA for medicare and IRMA should be eliminated too. Big Corporations don’t pay this.
Oooor… you could stop giving the deduction to investors as well.
And that Scott, would get the large investors out of the market and make home ownership more affordable.
What about letting current mortgage holders withdraw 401K savings without penalty to pay off existing mortgage?
Capital gains taxes are the biggest impediment to the U.S.A. real estate market at the moment. Reduce those taxes by 50% and you will free up sellers to sell. It will be a step in the right direction to prices normalizing. No one wants to sell because they will have to give a HUGE chunk of their savings (for many, most of their savings is in their home) to the government.
True!!!!!
This proposal would also encourage homeowner maintenance investment which would stimulate home repair small business.