Today we wanted to cover the final Big Beautiful Bill Passage benefits to real estate that the president signed on July 4th. If you own real estate, or thinking of buying, there’s a lot to like in this act.
Final Big Beautiful Bill Passage Benefits Real Estate
The Low Income Housing Tax Credit was made permanent and increased by 12.5%. Additionally, the bond financing requirement was reduced, as well as adding a 30% basis boost for properties in rural and tribal areas. The goal was to increase the supply of affordable housing and help entry-level home buyers.
Section 1031 Like Kind Exchanges were preserved. By maintaining this provision, investors will be able to defer capital gains and re-invest in other properties while preserving cash flow.
Permanent Cap on Mortgage Interest Deduction up to $750,000. This will provide certainty for borrowers and maintain home ownership as a solid tax strategy.
Permanent Mortgage Insurance Deduction. Borrowers can now permanently deduct PMI, FHA MIP, VA funding fees and USDA guarantee fees subject to income limits. This reduces the effective cost of low-down payment loans which should make homeownership more affordable.
Temporary Raised SALT Deduction Cap. This was raised from $10,000 to $40,000 per household from 2025-2029. This will help homeownership in high tax states for the next 4 years.
Restoration of 100% Bonus Depreciation. This will help property owners with new construction or acquisitions as well as those doing renovations or tenant improvements.
Permanent 20% Deduction for Qualified Business Income. Since most real estate qualifies as a trade or business under IRS guidelines, real estate investors can deduct 20% of their net rental income which will lower their effective tax rates and improve their yields.
Gain on Sale Rollover Provision Maintained. Real estate owners maintain the ability to roll over gains on property sales into opportunity zones and other structures,
Always Seek Tax Advice From Your Tax Professional
There are many other provisions in the tax act, too numerous to mention in this article. We focused this article on the provisions that affect home buyers and investors. Other provisions are designed to kick start the economy, like the section 179 expensing cap increase, the 899 retaliatory tax elimination, and the permanent small business estate tax exemption. The estate tax threshold was set at $15 million and is inflation adjusted. This provision will make it easier for families to transfer generational wealth without forcing them to sell to pay the IRS.
Investment in US
Companies now are incentivized to build factories in America and hire US labor, bringing jobs back to America. The final big beautiful bill should boost real wages for workers and provide a higher standard of living.
New data suggests import prices are falling despite tariffs. With inflation falling and real wages set to rise in the US, this act could be good for home buyers looking to begin building wealth for their family by buying real estate. Too many buyers have been priced out of the market. A correction in prices combined with lower interest rates and new tax provisions might be just what the doctor ordered for those struggling to make ends meet.
Best Place to Search Real Estate
Check out www.LeeCountyOnline.com It contains all the listings. Some of the real estate portals like Zillow and Redfin are banning certain listings, so you won’t see them all. Some brokerages are purposely not sending listings to Zillow and Redfin, and they are in lawsuits over the issue. Our website displays all the listings, so you’ll have access to everything in Real-Time. Check our neighborhoods, sold data, and home value estimates all in one site. You can even save your search and be notified when new listings or price changes hit the market.
Call Us
You can always reach our team at 239-489-4042. We’re here to help, and easy to talk to. We’re never pushy. We listen to your needs and provide valuable insight. Buyers and sellers thank us for listening and presenting options they never thought of. What can we do for you?