Hello Harry,

Hope your 4th of July was a chance to catch your breath, because the tax world just hit the gas.

As of last week, 100% bonus depreciation is officially back… and this time, it’s permanent.

For anyone in the mobile home park space, this is massive. Under the old rules, bonus depreciation was set to drop to 40% for 2025, meaning the write-off opportunity was shrinking fast. Not anymore.

Thanks to the new legislation, you can now fully expense qualifying assets in the year they’re placed in service, starting Jan 20, 2025, with no phase-out and no sunset. Just a clear path to real savings.

What qualifies? More than you think:

• Roads, sewer lines, utility hookups
• Office buildings, storage units, fencing
• Landscaping, signage, park lighting
• Renovation upgrades and infrastructure work

This also expands to Qualified Production Property (QPP), structures used for manufacturing, refining, or production-related services. If you’ve got buildings on-site being used for that, you're looking at even more favorable treatment through 2031.

And here’s something you won’t hear enough of:

These deductions are 100% audit-proof when they’re done correctly. The IRS isn’t pushing back on properly executed cost segregation studies.

Also worth noting, Section 179 expensing just jumped to $2.5 million, with the new phase-out beginning at $4 million. That’s more flexibility and bigger write-offs, even if bonus depreciation isn’t the right fit.

So… why does this matter now?

Because what you do today sets up what you can deduct on your taxes next year!

Smart park owners are already lining up cost segregation studies to break out short-life assets and stack these benefits. We’ve run these for many parks, and when done right, it’s not uncommon to unlock six figures in deductions in the first year alone.

Bottom line… this changes the game (again).

And if you’re planning any upgrades, acquisitions, or just trying to reduce your 2025 liability, this is where you get proactive and take advantage.

Let’s talk about your property, your plans, and how to make the most of this window.

Be well,

Harry Shurek

Founder & Managing Partner

The MHP Accountant - MHP

www.themhpaccountant.com