From Tax Burden to Tax Strategy: Why Summit County Investors Are Paying Less and Earning More
If you’ve been considering your first investment property or a turnkey short-term rental in Summit County—there’s a major opportunity on the table right now.
A new federal update brought back 100% bonus depreciation, and potentially for good. For high-income earners, business owners, or anyone with W-2 or 1099 income to offset, this change can mean tens of thousands of dollars in savings in year one.
The Big Picture:
Normally, investment properties are depreciated over 27.5 to 39 years, spreading out the tax benefit. But with bonus depreciation, you can front-load much of that deduction into your first year of ownership.
Combine that with the short-term rental (STR) loophole, and you don’t need to be a full-time real estate professional to qualify. If you:
- Spend 100+ hours per year managing your STR (and more than anyone else),
- Or hit 500+ total hours annually,
- Or host guest stays averaging under 7 days,
you may be eligible to offset earned income using real-estate-based “paper losses.”
What That Looks Like:
For example, a $1,000,000 property in Dillon or Frisco could generate $250K–$300K in first-year depreciation through a cost segregation study. Those deductions can offset your highest tax-rate income—sometimes resulting in $100K to $150K+ in refunds or reduced tax bills, all while your property also produces short-term rental income.
Why Summit County Makes Sense:
Summit County offers strong rental demand, limited inventory, and some of the highest nightly rates in the Rockies. When you pair that with these new tax advantages, the result is a rare combination of cash flow, appreciation, and major tax efficiency.
How Tree Line Can Help:
As your lending partner, we can help you:
- Structure financing to maximize cash flow and leverage
- Help you understand local zoning and regulations
- Coordinate with your CPA to model the potential tax benefits
If you have been waiting for the right time to enter the STR market or to turn your mountain home into an income-producing asset—this might be it!
