Big changes are coming out of Washington—and if you’ve been thinking about purchasing a second home, vacation retreat, or income-generating rental property, now may be one of the most financially strategic times to act.

Earlier this summer, Congress passed a sweeping tax package—nicknamed the “One Big Beautiful Bill”—that makes several key provisions from the 2017 Tax Cuts and Jobs Act permanent. For real estate investors, these changes offer significant advantages that could boost your cash flow, accelerate your return on investment, and enhance long-term wealth building.

Some of the most impactful updates include the continuation of the 20% Qualified Business Income (QBI) deduction for pass-through entities, 100% bonus depreciation for capital improvements, and expanded Section 179 deductions. In short, investors can now write off larger expenses more quickly and shield a bigger portion of their income from taxes. Lower personal tax rates and higher standard deductions remain in place too—benefiting everyone from individual buyers to family trusts and LLCs.

So what does this mean for those considering a second property? It means the numbers may work more in your favor than ever before. Whether you’re eyeing a waterfront home in Texas, a ski chalet in Colorado, or a short-term rental in Florida, these tax advantages make it more affordable to furnish, renovate, and operate your investment efficiently.

But it’s not just about the tax savings—it’s about the lifestyle and financial flexibility that a second property provides. A well-located vacation home can double as a personal getaway and a profitable asset, especially when managed by a reliable rental service. And with interest in travel and remote work still on the rise, demand for short-term stays in desirable markets shows no sign of slowing down.

At Austin Luxury Group, we help our clients make smart real estate decisions that align with both their lifestyle goals and long-term financial vision. Whether you're looking to escape the city on weekends, diversify your investment portfolio, or generate passive income, we can connect you with properties—locally or nationwide—that make sense for today’s market.

Ready to explore your next move? Let’s talk about how to take advantage of these new tax incentives and identify opportunities that match your goals. From identifying the right property to connecting you with trusted tax advisors, we’re here to help every step of the way.

Reasons to Buy a Vacation Home

• Designated Vacation Destination
  You have a go-to spot to unwind, so you don’t have to plan a new trip each year.

• Better Weather
  If it’s cold or rainy where you usually live, a vacation home could be a great retreat when it’s not so nice at home.

• Sense of Adventure
  Branch out and put down roots in a whole new community with vibrant restaurants, shops, activities, and more.

• Generate Rental Income
  Rent it out when you’re not using it, so you can make some extra cash.

• A Place to Retire
  Many people buy a second home so they can enjoy it now, and then retire there full-time down the road.

• Create a Lifetime of Happy Memories
  You’ll have a special spot for parties, regular family get-togethers, and more.

• Financial Advantages
  New tax laws make owning a vacation rental even more profitable, with benefits like the 20% QBI deduction and 100% bonus depreciation for upgrades and furnishings.