July 23, 2025

By: Travis Watts, Director of Investor Development

A Subtle but Significant Shift 

Every so often, a change in tax policy comes along that doesn’t just move the needle — it reinforces why many of us invest in real estate in the first place. That’s what we’re seeing now with the mid-2025 passage of what’s been informally dubbed the “Big Beautiful Bill.” 

While much of the media attention has focused on corporate rates or political talking points, the bill quietly delivers substantial advantages for real estate investors — particularly qualifying Limited Partners (LPs) in syndications like those we manage at Ashcroft. 

At its core, this legislation restores key provisions that enhance the long-term tax efficiency of real estate income and improve the cash flow profile of well-managed deals. 

 

The Three Tax Changes LPs Should Pay Attention To 

 1. 100% Bonus Depreciation Restored Through 2029

This is one of the most impactful changes for qualifying LPs. For qualifying properties placed in service after January 19, 2025, investors may now benefit from full bonus depreciation in the first year. 

This allows us to accelerate the depreciation schedule — creating sizable paper losses that offset passive income. In the right circumstances, that may result in significantly reduced tax liability in year one. 

Why it matters: For many investors, especially in high-income years or following a liquidity event, this can be a meaningful planning tool to retain more capital while maintaining real estate’s income potential. 

Ashcroft’s Halston Northlake offering is timed well for this provision and is positioned to take full advantage. 

 2. Section 199A – 20% Pass-Through Deduction Made Permanent

Qualifying investors in real estate partnerships will continue to benefit from the ability to deduct up to 20% of qualified business income (QBI). This isn’t a flashy headline, but it’s a foundational component of real estate’s long-term tax efficiency. 

Why it matters: With the deduction now permanent, it provides greater predictability when planning future distributions and after-tax returns — particularly important for LPs evaluating multi-year hold strategies. 

 3. Interest Deduction Enhancement Under Section 163(j)

This technical fix allows sponsors to add back depreciation when calculating how much interest expense can be deducted. 

Why it matters: It allows us, as operators, to deduct more interest, which ultimately strengthens deal-level cash flow. When our assets operate more efficiently, investors benefit — whether through distributions, reinvestment, or stronger performance over time. 

 

What Didn’t Change — And Why That Matters 

Just as important as the updates are the aspects that remained unchanged. The 1031 Exchange remains fully intact, preserving one of the most powerful tools available for deferring taxes and compounding wealth over time.  

Additionally, the regulations around carried interest and SALT cap limits were left untouched, meaning that common investor strategies remain viable and unaffected. For limited partners pursuing long-term strategies and reinvestment plans, these elements continue to serve as foundational pillars—and their stability should not be overlooked. 

 

Why This Is Timely: The Northlake Opportunity 

Halston Northlake is aligned with this new tax landscape. It qualifies for 100% bonus depreciation, benefits from enhanced interest deductibility, and allows qualifying LPs to take full advantage of the QBI deduction. 

Timing matters in real estate. And the timing here is working in your favor. 

In a market where many are still sitting on the sidelines, this legislation reinforces the long-standing benefits of owning real assets — and Northlake is positioned to take advantage immediately. 

Key Takeaways for Investors 

  • These aren’t theoretical updates — they’re live. 
  • Ashcroft deals like Halston Northlake are positioned to fully leverage the new provisions. 
  • If you’re an LP with high passive income or planning near-term investments, this tax law could directly benefit your bottom line. 

Let’s Talk 

If you’d like to understand how your current or future investments could benefit under the new law, we’d be happy to walk through the specifics. 

Schedule a Call with Investor Relations Today 

Disclaimer: The offering referenced herein is available only to verified Accredited Investors under The Securities Act of 1933, Regulation D, Rule 506(c). This material is provided for informational purposes only and does not constitute legal, tax, or investment advice. Investors should consult their personal legal and tax advisers to understand how recent legislation may apply to their specific financial situation. Any references to projected performance or tax benefits are illustrative only and not guaranteed. There is no assurance any investment will achieve its objectives or that investors will receive a return of capital. Past performance is not indicative of future results. This information was derived from sources Ashcroft deems reliable, but Ashcroft does not guarantee its accuracy or completeness.