3 Year-End Real Estate Tax Strategies to Save Thousands Before December 31, 2025

3 Year-End Real Estate Tax Strategies to Save Thousands Before December 31, 2025

Utah Edition: Federal + 4.50% State Savings — Lock In Permanent 100% Bonus Depreciation

The Countdown Is On!

The holidays are here, but December 31, 2025, is your last chance to save big on your federal and Utah state taxes using IRS-approved real estate strategies.

Utah’s low 4.50% flat state income tax means every deduction saves you twice: federally and at the state level.

Thanks to the One Big Beautiful Bill Act (OBBBA), 100% bonus depreciation is permanent for qualifying property acquired and placed in service on or after January 20, 2025.

1. Prepay Your 2026 Utah Property Taxes

Deduct them on your 2025 tax return; simple and effective.

Salt Lake County Example

How to Prepay:

1. Visit your county treasurer’s website:

• Salt Lake: slco.org/treasurer
• Utah County: utahcounty.gov/Dept/Treas
• Other counties: Search “[County] Utah Treasurer Prepay”
  
  

2. Select "Prepay 2026 Taxes"

3. Pay via ACH, card, or check (postmarked by Dec 31)

4. Save your receipt → Provide to CPA for Schedule A (Federal) + TC-40 (Utah)

Tip: Skip this step if you take the standard deduction or have maxed out the SALT deduction ($10,000).

2. Lock In 100% Bonus Depreciation on Rental Upgrades

Thanks to OBBBA, all qualifying properties placed in service after January 20, 2025, can get 100% bonus depreciation. Improvements need to be finalized by December 31 to maximize your 2025 deduction.

Lehi Duplex Example

Maximizing Deduction:

• Finish upgrades by December 31 for the 2025 claim
  
• Eligible items: appliances, flooring, windows, security systems, interior paint
  
• Use cost segregation to accelerate deductions
  
• File Form 4562 → flows to Utah TC-40
  
  

Investor Tip: Utah’s Silicon Slopes and university towns mean strong rental demand. Upgrade now, deduct fully, and enjoy long-term cash flow.

3. Sell Underperforming Property — Harvest Losses

Some Utah markets cooled in 2025. Selling a loss property before December 31 allows you to offset gains from stocks, crypto, or other real estate; federal and state taxes