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Tiny Homes and the 100% Bonus Depreciation Advantage in 2025

Published on
September 3, 2025
Bonus depreciation for tiny homes (2025 update). Learn how THOWs and Park Model RVs qualify for 100% write-offs under the One Big Beautiful Bill Act and what records owners need.

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- a benefit tradiitonal homes can't touch.

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

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  • 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.
  • 📽️ Watch: Jonathan explains how the Big Beautiful Bill restored 100% bonus depreciation and what that means for investors.

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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.

For movable dwellings, that deduction can apply to a properly certified Tiny Home on Wheels or Park Model RV.

What the Big Beautiful Bill Changed

Before 2025, 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 --- movable structures that qualify as personal property under federal tax definitions.

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 unlocks the 100% write-off.

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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 how those numbers actually play out for real Clever owners.

Opportunities for Investors

Slide showing immediate tax savings with an $80K Clever S example under 100% bonus depreciation.
Bonus depreciation means cash back in year one — not decades later.

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The Bill opens opportunities at every scale:

  • Single Airbnb Host: 100% deduction if home is used in business.
  • Five-Unit Community: Layer cost segregation benefits for land improvements.
  • 20+ Unit Developments: Aggregate deductions approaching $1M in year one.
Clever Tiny Home on Wheels lit at night with campfire and tree in the background.
From one Airbnb to full communities, THOWs scale with your business goals.

Bonus depreciation turns capital expenditures into near-term cash flow—making movable housing one of the most efficient real-estate-adjacent investments of 2025.

👉 Watch: Customer's Success with a Clever THOW AirBnB

Eligibility Checklist

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  • ✅ Used for business or income generation (not personal use).
  • ✅ Classified as THOW or Park Model RV under ANSI 119.5 or RVIA standards.
  • ✅ Placed in service in 2025.
  • ✅ Invoice + delivery documentation for tax records.
  • ✅ CPA confirmation of business use percentage.

FAQs

Can tiny homes qualify for bonus depreciation in 2025?
Yes—when used in a qualifying business (Airbnb, rentals, office lodging). The unit must meet ANSI 119.5 or RVIA standards. See irs.gov.

What % is bonus depreciation now?
100% for business personal property placed in service in 2025 under the One Big Beautiful Bill Act (2025).

Do Airbnb hosts qualify?
Usually yes—if it’s a business and the owner meets “material participation” tests. Confirm with your CPA.

What documents do I need?
Invoice, delivery date, placed-in-service records, classification (THOW or PMRV), and proof of business use. A cost segregation study may enhance deductions.

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Bottom Line

With 100% bonus depreciation restored, Tiny Homes on Wheels and Park Model RVs are now recognized as business assets—not houses.

Whether you’re writing off one Clever S studio or scaling a community of twenty, the math is the same: more cash flow now, not later.

Clever Tiny Home on Wheels parked among vineyards with text overlay highlighting new tax opportunities under the Big Beautiful Bill.
With 100% bonus depreciation locked in, THOWs and PMRVs are now a permanent tool for business growth — from one unit to entire communities.

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📌 Always consult your CPA to understand how this applies to your situation.

👉 Explore Clever Tiny Homes’ Park Model RVs or watch our new YouTube breakdown for 2025 rules.