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US tax policy is poised to undergo a significant shift in 2026, and real estate investors are already weighing its implications. This change is driven by the permanent reinstatement of 100% bonus depreciation, a provision that industry figures have labeled the “big, beautiful bill.” For investors, especially those active in real estate syndications, the return of this deduction marks a significant turn.
Return of 100% Bonus Depreciation
Bonus depreciation allows investors to accelerate deductions by writing off eligible property in the year it is placed in service. With the full 100% deduction back on the table, syndication partners can expect larger paper losses that help offset real income and gains.
In most cases, these deductions render a substantial portion of distributions effectively tax-free. This situation has compelled investors to seek ways to manage exposure in unpredictable markets, where revived incentives are emerging as a crucial tool.
A Pathway for Retirement Funds
With changes in tax policy, investors in self-directed retirement accounts, such as IRAs and 401(k)s, may see new advantages. These accounts allow participants to invest capital in real estate syndications without withdrawing funds from their tax-advantaged structures. Assets and income generated by the investments remain in the account and are governed by standard withdrawal rules.
The mechanics here are simple, as the account, not the individual, becomes the investor. This model preserves the tax benefits of retirement vehicles while increasing exposure to private real estate deals. For many, this is an alternative to market-linked investments that may not match their risk tolerance or long-term goals. As the 2026 legislation approaches, advisors expect heightened interest from retirement savers seeking more enduring strategies.
Who Stands to Gain
Not all investors will benefit equally from these changes. The profile best suited for retirement-based real estate participation includes those with a long-term outlook, typically five to ten years, and comfort with illiquid assets. Syndications require patience, and returns often materialize gradually through income distributions and asset appreciation.
Capital requirements also play a role. Investors who can commit $100,000 or more are better positioned to access higher-quality opportunities. For them, the renewed tax incentives strengthen an already appealing proposition, offering long-term diversification backed by tangible assets.
Insight From the Field
Next Play Investments is among the companies offering access to these retirement-friendly syndication opportunities. The team here has observed rising investor interest as the 2026 legislation approaches.
Michael Margarella, speaking on the firm’s strategy, noted a key advantage of the asset class. “One of the reasons we like real estate is because it produces quarterly distributions in a more predictable manner than stocks do. But if you are leveraging a retirement account, you’re not necessarily going to be able to use that quarterly income.”
His observation reflects the unique nature of retirement-based real estate investing, where income remains in the account and contributes to long-term growth without triggering immediate tax consequences.
Looking Ahead
With the upcoming changes in the 2026 tax law, investors using retirement accounts may experience one of the most favorable environments in years. With proper planning and the right operator, the combination of full bonus depreciation and tax-advantaged capital could transform strategies for those seeking stability beyond stock market volatility.
