Tiny Homes and the 100% Bonus Depreciation Advantage

Published on

September 3, 2025

TL;DR

The Big Beautiful Bill restored 100% bonus depreciation for business assets. Tiny Homes on Wheels (THOWs) and Park Model RVs (PMRVs) are the only housing types that qualify. That means an $80,000 Clever S studio can deliver $24,000 in tax savings in year one.

Slide announcing that 100% bonus depreciation is back under the Big Beautiful Bill, with THOWs and PMRVs as the only housing that qualify. — The only housing type that qualifies: Tiny Homes on Wheels and Park Model RVs.

Key Takeaways

100% bonus depreciation is back as of January 2025, thanks to the One Big Beautiful Bill Act (2025).
THOWs = Business Personal Property. Houses are real property and don’t qualify.
Immediate tax benefit: $80K THOW = $24K back in year one (30% tax bracket).
Traditional real estate lags: same $80K baseline would save just $873 in year one.
Scalable investment tool: Works for solo Airbnb hosts and multi-unit communities.

What Bonus Depreciation Means

Bonus depreciation is a tax incentive that lets you deduct the full cost of a business asset in year one. Normally, assets are depreciated slowly — often over decades.

Example: Buy $100,000 of equipment → deduct $100,000 immediately → save $30,000 in taxes at a 30% bracket.

What the Big Beautiful Bill Changed

Before the Bill, bonus depreciation was phasing down — 80%, then 60%, then heading toward zero by 2027.

As of January 19, 2025, the Big Beautiful Bill restored permanent 100% bonus depreciation for Business Personal Property.

And that’s where Tiny Homes on Wheels / Park Model RVs come in.

Flexible placement, business-ready classification: wheels make it possible.

Interior of a Clever S shows premium finishes

Why Tiny Homes on Wheels Qualify (and Houses Don’t)

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Traditional houses/apartments: Classified as real property → no bonus depreciation.
Tiny Homes on Wheels / PMRVs: Movable → classified as Business Personal Property → 100% bonus depreciation.

A Clever Tiny Home on Wheels being delivered across rugged terrain by truck. — 💡 The wheels make all the difference. Mobility is what makes a THOW a business asset — and eligible for the 100% write-off.

The Numbers: $80K Tiny Home

Let’s take the Clever S studio, priced at around $79,995.

A Clever Tiny Home on Wheels overlooking the ocean, showing portability and scenic placement. — Tiny Homes on Wheels can be placed where opportunity is — and still count as a business asset.

Interior of a Clever Tiny Home with kitchen, bedroom, and ocean sunset view. — Inside a Clever S — functional, livable, and built to qualify as Business Personal Property.

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With bonus depreciation (THOW): Deduct the full $80K in year one → $24,000 tax savings assuming a 30% bracket.
Without bonus depreciation (real estate): The same asset would have to be depreciated over 27.5 years — just a fraction of the benefit each year.

That’s 27 years of waiting versus year-one savings you can reinvest immediately.

👉 Watch: Inside the Clever S — Our Bestselling Tiny Home on Wheels