While most headlines focused on spending cuts and political drama, the real estate industry just scored a massive win—and hardly anyone’s talking about it. Quietly tucked into the new budget bill (yes, the one nicknamed the “Big Beautiful Bill”) are some of the biggest real estate-friendly tax changes we’ve seen in years—and they could shape the next decade of housing in America.
Let’s break it down:
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The Mortgage Interest Deduction is safe—still deductible on loans up to $750K.
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The SALT deduction cap has been quadrupled, giving relief to homeowners in high-tax states.
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The powerful 1031 Exchange tool? Protected.
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The 20% Qualified Business Income (QBI) deduction? Made permanent.
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Bonus depreciation and Section 179 got supercharged—boosting cash flow for property owners and builders. This is real estate's new secret weapon.
Real Estate's New Secret Weapon: 100% Bonus Depreciation
One of the biggest sleeper wins in the "Big Beautiful Bill" is the return of 100% bonus depreciation—and for real estate pros, flippers, investors, and developers, it's a game changer.
Bonus depreciated allows you to immediately write off 100% of the cost of qualifying property—like appliances, fixtures, equipment, and certain improvements—in the first year it's placed into service, rather than depreciating it over time (normally depreciated over 39 years).
Previously, bonus depreciation was being phased out (set to drop to 60% this year), but the new bill restores it to a full 100% through 2032. That means huge upfront tax deductions that can significantly reduce your taxable income and boost cash flow. And if you do a cost segregation study, even portions of a newly built or acquired property (like flooring, cabinets, and parking lots) can qualify.
But this isn’t just about investor perks. It’s about unlocking opportunity. The bill also expands the Low-Income Housing Tax Credit (LIHTC) and lowers the bond financing threshold—two moves expected to help build or preserve over 1 million affordable rental homes in the next decade. For young buyers locked out of the market, that’s critical breathing room. For developers, it’s go time.
Even better? The bill lays the foundation for more new construction, more smart investment, and more housing choices. With the number of renter households now at a record 46 million, and Gen Z + millennials still eager to buy once rates drop, this legislation gives us the runway to prepare for the next wave of homeownership.
The American Dream isn’t dead—it’s just evolving. This bill is a bullish signal that real estate still matters. The incentives are clear: invest in housing, support development, and prepare for the moment buyers come off the sidelines (hint: many say that’s when rates hit the mid–5% range).
What do you think of this bill? Will this bill help spur real growth—and finally bring meaningful inventory back to the market?
