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Leveraged Deduction

Investments For 2025

Overview

Overview

This is an opportunity to purchase a BoxHouse and reduce your taxable income by $400,000 with an income-producing asset.

Due to its unique designation, BoxHouse qualifies for a one-year, 100% deduction as defined under the Internal Revenue Code, section 179. For tax years beginning in 2025, the maximum expense deduction is $1,250,000. 

The BoxHouse

About the BoxHouse

Measuring 19 feet by 20 feet, or approximately 380 square feet, the BoxHouse is designed to provide privacy and comfort by including a full kitchen, bathroom, bedroom, dining & living area.

Constructed with a steel frame and walls, the BoxHouse is designed to endure significantly longer than conventional stick-built houses due to its reduced susceptibility to severe weather conditions, mold, rot, etc.

The BoxHouse is unique as it is movable and doesn’t require an expensive foundation. They simply sit on 12 adjustable feet on either concrete blocks or helical piers (ground screws).

Tour a BoxHouse
BoxHouse Photos

BoxHouse Photos

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BoxHouse Floor Plans

BoxHouse Floor Plans

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Let's Take a Look at the Process

Purchase Details

Purchase an income-producing BoxHouse for $400,000 with $100,000 down. The remaining $300,000 will be financed, resulting in a monthly payment of $1,108.86.

Lease Details

Strategic partners lease the BoxHouse units from the purchaser for $1,150 per month. They cover the $1,108.86 monthly loan payment and return the $41.14 difference to the investor each month.

Tax Deduction

Under IRC Section 179, the owner can claim a $400,000 deduction on their 2025 taxable income, potentially yielding $148,000 in federal tax savings for those in the highest tax bracket.

Financing Terms for the BoxHouse

  • Purchase Price: $400,000
  • Down Payment: $100,000
  • Note Balance: $300,000
  • Note Rate: 2%
  • Note Term: 30 Years
  • Monthly Note Payment: $1,108.86
  • Lease Payment to Tax Investor: $1,150
  • Monthly Cash Flow: $41.14

Let’s Take a Deeper Dive Into IRS Section 168(k) & 179

Section 179

In 2025, Section 179 allows businesses to write off 100% of the cost of qualifying assets in the year they are placed into service up to $1,250,000. While real estate does not qualify, IRS rulings have determined that movable structures, such as portable homes delivered on wheels and used to produce income, are considered personal property and not real estate. This classification makes BoxHouses eligible for Section 179 deductions.

Section 168(k) – Bonus Depreciation:

Movable structures like BoxHouse units, which are delivered on wheels and can be transported, are classified as personal property under Section 168(k), making them eligible for this bonus depreciation.

https://www.irs.gov/newsroom/additional-first-year-depreciation-deduction-bonus-faq

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