What It Means for Vacation Rental Investors in Indio, California
There's a growing conversation happening in real estate and tax circles: Could Congress reinstate 100% bonus depreciation in 2025? If so, investors who buy vacation rentals—especially in Indio, CA—could be looking at a massive tax-saving opportunity.
DISCLAIMER: Before we dive in: I'm not a CPA or financial advisor. I'm a local expert and one of the best vacation rental real estate agents in Indio. This blog is for educational purposes only—please speak with your licensed tax professional before making any financial decisions.
What Is Bonus Depreciation—and Why Does It Matter?
Bonus depreciation allows investors to write off a large percentage of their investment property's value in the first year of ownership, instead of spreading it over decades through standard depreciation.
In 2023, bonus depreciation sat at 80%. In 2024, it dropped to 60%. It's scheduled to fall again to 40% in 2025—unless Congress decides to bring back the full 100%.
If that happens, it could create a rare window for investors to significantly reduce their taxable income.
How Vacation Rental Buyers in Indio Can Benefit
Indio, California has become a top location for vacation rentals thanks to major music festivals, warm weather, and strong short-term rental demand. If bonus depreciation returns in 2025, buyers who invest in Indio vacation homes could potentially:
- Deduct a large portion of their home's value in year one
- Offset other rental income or even W-2 income (in certain cases)
- Improve year-one cash flow
- Reinvest tax savings into future properties
Some investors even use this strategy to build a portfolio—buying one home each year and using the tax savings to grow faster.
Spotlight: The Montage at Santa Rosa — A Hidden Gem for Investors
The Montage community in Santa Rosa is gaining serious traction among savvy investors. These homes are not just beautiful and spacious—they're also zoned for short-term rental use, making them incredibly valuable in today's market.
Three standout opportunities currently on the market:
- 81107 Tranquility Dr, Indio, CA 92201
- 48749 Renewal St, Indio, CA 92201
- 81107 Carefree Dr, Indio, CA 92201
These homes are sought after by major investors because of their high rental income potential, location within a premium gated community, and stunning interior features. If you're considering leveraging bonus depreciation in 2025, these are the kinds of properties that make the numbers work.
Ready to schedule a showing or learn more? Click to call Eleazar Lua now at (760) 625-6033
What You'll Need to Make It Work
To fully take advantage of bonus depreciation (if reinstated), you'll need a solid plan. That usually includes:
- Working with a real estate CPA familiar with cost segregation studies
- Being actively involved in managing your vacation rental (to meet IRS rules for material participation)
- Proper business structure and record-keeping
The great news? You don't have to be a full-time investor to benefit—just a smart one.
Why Indio Is Still One of the Best Markets in the Coachella Valley
Indio remains one of the most attractive cities for vacation rental buyers thanks to:
- High rental demand during events like Coachella and Stagecoach
- Year-round sunshine and snowbird tourism
- More flexible local short-term rental rules compared to surrounding cities
- Property values that still offer upside in the long run
Pair all of that with a potential return of bonus depreciation, and you've got the ingredients for a smart, tax-efficient investment.
Final Thoughts from a Vacation Rental Real Estate Agent in Indio
If bonus depreciation is brought back in 2025, it could unlock serious tax benefits for vacation rental investors. Whether you're buying your first income property or expanding your portfolio, it's worth planning ahead now—before the window of opportunity closes.
I'm here to help you find the right property in the right location, with the features renters love—and that could work well with your investment strategy.
Ready to Explore Buying a Vacation Rental in Indio?
I specialize in helping investors like you navigate the vacation rental market in Indio, CA. Let's talk about your goals, your timeline, and how we can find the right opportunity—whether or not bonus depreciation comes back.
Book a free call with Eleazar Lua
Phone: (760) 625-6033
Email: eleazar@eleazarluarealestate.com
Website: Home
DRE License: #02150147
Broker License: #01754045
