Now is the Time to Secure an Investment Property Tax Deduction Before the End of 2025

As we head into the final stretch of 2025, savvy investors are taking a hard look at their portfolios—and more importantly, their tax strategies. If you’ve been considering an investment property, there may be no better time to act than now. The window to maximize deductions for 2025 is narrowing.

Building Long-Term Wealth While Saving Short-Term Taxes

The appeal of real estate as an investment isn’t just the cash flow and appreciation potential—it’s the tax efficiency. Unlike other investments, rental properties generate cash flow while also offering meaningful deductions. For high-income earners, the tax savings alone can significantly offset the costs of ownership.
With the possibility of future tax law changes, acting before the end of 2025 gives you certainty and the ability to lock in deductions under current rules.

Steps to Take Before December 31, 2025

1. Meet with your CPA or tax advisor – Every investor’s situation is unique. A professional can show you how a purchase fits into your overall tax plan.
2. Get financing lined up – Interest rates fluctuate, but locking in a mortgage now could position you for both stability and deductibility.
3. Identify the right market – Look for areas with strong rental demand, appreciation potential, and favorable landlord laws.
4. Close and place in service – To qualify for deductions in 2025, your property needs to be available for rent before December 31.

Ready to Invest in Hawai‘i Real Estate?

I specialize in helping buyers find income-producing condos in Waikīkī and across O‘ahu. If you’ve been waiting for the “right time,” consider this your reminder: NOW is the time to act before the year ends. Contact me today to find the right investment for you.

Investing Disclaimer:  It is important to remember that real estate investments are inherently subject to market fluctuations. Rental income can vary based on tenant demand, local economic conditions, property management, and government regulations. Similarly, capital appreciation is influenced by broader market trends. No investment is ever guaranteed, and real estate is no exception. As with any financial endeavor, there are risks, and returns are not assured. Investors should always consider these uncertainties when planning their investment strategy to make informed decisions that align with their risk tolerance.