How Trump’s “Big, Beautiful Bill” Impacts OKC Rental Property Investors

How Trump’s “Big, Beautiful Bill” Impacts OKC Rental Property Investors

At OKC Management, we keep a close eye on policies that impact your bottom line as a rental property owner. One of the most significant tax changes in recent history—popularly known as Trump’s “Big, Beautiful Bill” (officially, the Tax Cuts and Jobs Act of 2017)—has reshaped how many investors manage and profit from their real estate portfolios.

So, what does this mean for you if you own rental properties in Oklahoma City? Let’s break it down.

💸 1. The 20% Pass-Through Income Deduction (QBI)

This is a game-changer for landlords who qualify.

If your rental activity is considered a “trade or business,” you could deduct up to 20% of your net rental income. That means if your property earns $50,000 in profit, you may only be taxed on $40,000.

Who qualifies? Most active landlords who manage their properties regularly or through a management company like OKC Management may meet the threshold.

🏗️ 2. 100% Bonus Depreciation

Trump’s bill allows real estate investors to immediately deduct the full cost of certain property improvements—even if the property or equipment was used.

For example:

• New HVAC system? Full write-off.

• Roof replacement? Full write-off.

• New appliances or flooring? Full write-off.

This accelerated depreciation puts more money in your pocket now, rather than spreading the deduction over many years.

🛠️ 3. Expanded Section 179 Expensing

Section 179 used to be mostly for business equipment, but under the TCJA, it now covers improvements to rental properties, including:

• Security systems

• Fire and alarm systems

• Roofs, HVACs, and more

This change benefits small to midsize property owners who want fast deductions.

🧾 4. Limits on SALT Deductions (But Not a Big Deal in OKC)

The bill capped State and Local Tax (SALT) deductions at $10,000, which hit investors hard in high-tax states like California or New York.

Here in Oklahoma, where property taxes are modest, most landlords felt little impact.

🏦 5. Interest Deduction Limits (But You’re Probably Exempt)

If your rental business earns under $25 million annually (which includes most individual investors), you can still fully deduct your mortgage interest.

Larger investors can still opt out by electing to treat their rental as a real property trade or business—but must use a slower depreciation schedule.

🧠 What to Keep in Mind

• The QBI deduction is set to expire after 2025 unless Congress extends it.

• Bonus depreciation is phasing down after 2022.

• To take full advantage, make sure your rental activity is treated as a business, not a passive investment—this is where professional management helps.

👇 Final Thoughts from OKC Management

Trump’s tax law brought real, tangible benefits to Oklahoma City rental property owners—especially those who rehab properties, actively manage their investments, or work with a professional property management company.

We’re here to help you not just maintain your properties—but maximize your profits.

Want help running your rental like a business?
Let’s talk strategy. Contact OKC Management today for a personalized plan to get the most out of your investment.