The Power of the One Big Beautiful Bill for Florida Agents

On July 29, 2025, I had the privilege of hosting a webinar with James Brown, a seasoned real estate attorney and founder of New Path Title, to discuss a game-changing opportunity for Florida real estate agents: the One Big Beautiful Bill (OBBB). Signed into federal law on July 4, 2025, this legislation presents a unique opportunity, particularly in the context of Florida’s ongoing condo crisis. In this blog post, I’ll break down the key insights from our discussion, focusing on how real estate agents can leverage the OBBB’s accelerated depreciation benefits through cost segregation to generate more closings.

The Opportunity: A Perfect Storm for Florida Real Estate

The Florida condo market is currently facing significant challenges, with properties lingering on the market due to high special assessments and structural integrity reserve studies (SERS). However, the OBBB introduces a powerful tool for real estate agents to turn this crisis into an opportunity. By combining cost segregation with the bill’s accelerated depreciation provisions, agents can attract investors and generate consistent sales—potentially 20 deals a year from just 10 investors.

What is Cost Segregation?

Cost segregation is a tax strategy that allows property owners to break down a building into smaller components and reclassify them for faster depreciation. Typically, residential rental properties are depreciated over 27.5 years, but cost segregation identifies components like carpeting, appliances, HVAC systems, and landscaping that can be depreciated over shorter periods (5, 7, or 15 years). This accelerates tax deductions, reducing taxable income and boosting cash flow.

Under the OBBB, the game-changer is that 100% of the value of assets with a useful life of 20 years or less can be deducted in the first year for properties purchased after January 19, 2025. This is a significant shift from previous depreciation schedules, making it a golden opportunity for investors and agents alike.

Why Condos Are the Sweet Spot

Condos are particularly attractive for cost segregation because, unlike traditional properties, they don’t include land, which is not eligible for cost segregation. This means a higher percentage of the property’s value—think interior improvements like flooring, cabinetry, and mechanical systems—qualifies for accelerated depreciation. In a $350,000 condo, for example, a cost segregation study might yield a $100,000 deduction from income in the first year, putting real money back in the investor’s pocket.

The Strategy: Sell, Buy, Repeat

The OBBB’s accelerated depreciation is a one-year benefit, so what happens in year two? The answer is simple: sell the property and buy another. By using a 1031 exchange, investors can defer capital gains and depreciation recapture taxes, restarting the cost segregation process with a new property. This cycle can continue year after year, creating a pipeline of deals for agents. For every 10 investors following this strategy, agents could facilitate 20 transactions annually (one purchase and one sale per investor).

Moreover, the investor’s heirs benefit from a stepped-up basis upon the owner’s death, meaning the property’s value is reset to its market value at that time, eliminating pent-up capital gains and depreciation recapture taxes. This makes the strategy not only a tax-saving tool but also a powerful wealth-building mechanism.

Action Steps for Real Estate Agents

To capitalize on this opportunity, agents need to be proactive. Here’s how you can get started:

1. Educate Yourself on Cost Segregation and OBBB: Research cost segregation and the accelerated depreciation benefits under the OBBB. Understand the basics so you can explain them clearly to potential investors. Avoid getting bogged down in overly technical details—focus on the big picture: tax savings and cash flow.

2. Target the Right Properties: Look for condos or multifamily properties with high amenitization (e.g., updated appliances, HVAC, flooring). These properties maximize the benefits of cost segregation. Avoid properties with significant land value, as land doesn’t qualify for accelerated depreciation.

3. Market to Investors: Create simple, digestible marketing materials (e.g., email campaigns, social media posts) highlighting the tax advantages of the OBBB. For example: “Invest in a Florida condo, deduct $100,000 from your income in year one, and repeat the process annually with a 1031 exchange!” Emphasize that investors don’t need to live in Florida—anyone in the U.S. can take advantage of this opportunity.

4. Partner with Experts: Work with cost segregation analysts and CPAs who specialize in this area. During our webinar, Jim mentioned two professionals—Zach (a cost segregation analyst) and Alex (a CPA)—who can provide valuable insights. Stay tuned for our next webinar, where we’ll invite them to dive deeper into real-world examples.

5. Leverage RealTrade: My platform, RealTrade, is a free online marketplace and social network for real estate professionals. Use it to list properties, connect with investors, and network with service providers like lenders and title companies. You can even add off-market or “first look” listings to test the market before hitting the MLS.

Real-World Impact: A $100,000 Deduction Example

Imagine an investor purchases a $350,000 condo in Florida. A cost segregation study identifies $150,000 in components (e.g., HVAC, flooring, appliances) eligible for accelerated depreciation under the OBBB. This results in a $100,000 deduction from their taxable income in the first year. After year one, the investor sells the property via a 1031 exchange, buys another condo, and repeats the process, deferring taxes and generating commissions for you. With just 10 investors following this strategy, you could secure 20 deals annually.

Navigating the Condo Crisis

The Florida condo market is tough, with milestone inspections and SERS driving down property values. However, the OBBB offers a way to turn this challenge into an advantage. Focus on “uninfected” buildings—those without high special assessments—and highlight the tax benefits to attract investors. Additionally, educate clients that condo dues and assessments are deductible as expense items, further enhancing the financial appeal.

Final Thoughts

The One Big Beautiful Bill is a game-changer for Florida real estate agents. By understanding and marketing the benefits of cost segregation and accelerated depreciation, you can differentiate yourself in a competitive market, attract investors, and build a pipeline of repeat transactions. This isn’t just an opportunity—it’s a strategy to thrive in today’s challenging condo market.

Ready to get started? Join Real Trade to connect with investors and list properties, and mark your calendar for our next webinar. Let’s turn the OBBB into your One Big Beautiful Opportunity!

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