🏛️ Trump’s “One Big Beautiful Bill” Now Law: What STR Owners Need to Know

On July 4, 2025, President Trump formally signed the One Big Beautiful Bill—a sweeping, roughly 900-page legislative package—into law in a Fourth of July White House ceremony featuring a military flyover. This new law extends the 2017 tax rates permanently and introduces several targeted deductions affecting everyday earners and STR operators.

🎯 Key Tax & Deduction Updates

• Permanent 2017 tax cuts for individuals and businesses.
• New deductions:
  • No-tax on tips, up to $25,000 per individual.
  • No-tax on overtime, capped at $12,500 (planned $25,000 for joint filers).
  • $6,000 “senior deduction” for Social Security beneficiaries earning under $75,000 .
• State and Local Tax (SALT) cap raised to $40,000 (phasing out for incomes above $500,000) through 2030.
• Child Tax Credit uplifted to $2,200, with expanded ages and temporary terms.

🏠 What This Means for STR Owners

Great news for property investors and short-term rental hosts:

• The bill revives 100% bonus depreciation on eligible assets—including cost segregation and STR improvements—on investments placed into service from 2025–2030.
• That means purchases like appliances, furniture, even structural enhancements, can be fully deducted in year one—accelerating write-offs and improving cash flow.
• Combined with legacy TCJA benefits like pass-through deductions, STR owners now have enhanced strategies to boost profitability during property acquisition and renovation.

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📈 How to Leverage STR Financial Tools

STR managers should take advantage of Chalet’s financial platforms:

• STR Calculator: Pinpoint your net revenue, including updated depreciation benefits—explore it here: STR Calculator.
• Performance Overview: Monitor your income trends and expense ratios—all in one dashboard: STR Overview.

These tools are more powerful than ever. Plugging in your property’s rehab budget or equipment costs lets you instantly model the impact of 100% bonus depreciation, SALT changes, and new deductions—helping you fine-tune rental pricing, tax strategies, and seasonal forecasting.

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⚖️ Bigger Picture: Benefits vs. Trade‑offs

Beyond depreciation upsides, here’s what else the new law brings:

• Military & Border Security: Bill allocates over $300 billion for defense and immigration enforcement.
• Phasing out clean‑energy credits: EV incentives and green energy tax credits expire early, marking a clean energy policy step-back.
• Safety-net cuts: Medicaid and SNAP reforms add work requirements and state cost-sharing—with the CBO warning ~11–12 million may lose benefits by 2034.
• Debt and deficit: Adds about $2.8–3.4 trillion to the national debt over 10 years, per CBO projections.

That makes the law a mixed bag: favorable to property owners and higher earners, potentially troublesome for lower-income households, clean energy advocates, and federal budget health.

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💡 Tips for STR Hosts in This New Era

1. Front-load depreciation: Use cost segregation + bonus depreciation to maximize year-one deductions on improvements and furnishing.
2. Use Chalet’s tools: The STR Calculator now reflects updated write-offs—run numbers early in the year.
3. Don’t neglect SALT planning: With the $40k cap, states with high property taxes may require strategic planning—track using Chalet’s Overview.
4. Stay tuned on renewable policies: The rollback of clean energy perks could influence future onsite upgrades (e.g., solar panels).

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✅ Bottom Line

The One Big Beautiful Bill delivers a major win for STR investors: 100% bonus depreciation, permanent tax brackets, and fresh deductions give hosts powerful tools to reduce taxable income and mobilize capital. Yet, the expansion of national debt and shift in social program funding could ripple into broader economic dynamics.

For STR professionals, it’s all about optimizing financial planning and smart investment timing—starting with Chalet’s STR Calculator and Overview dashboards.