Breaking News: New Tax Reform Brings Major Wins for Real Estate and Homeowners

In a landmark decision early this morning, the House of Representatives passed the One Big Beautiful Bill Act—a sweeping tax reform package that delivers significant benefits for homeowners, real estate investors, and everyday families.

The National Association of REALTORS® (NAR) played a crucial role in shaping the bill, and the result is a clear win for the real estate community. Whether you’re a homeowner, future buyer, small business owner, or real estate investor, there’s a lot to be excited about.

🏡 Here’s What This Means for You:

✅ Enhanced Tax Breaks for Independent Contractors & Small Business Owners
The Qualified Business Income (QBI) deduction has been increased from 20% to 23% and made permanent, offering more savings to self-employed professionals—including many real estate agents and small business owners.

✅ SALT Deduction Cap Quadrupled
The State and Local Tax (SALT) deduction cap jumps from $10,000 to $40,000 for households earning under $500,000—helping families in high-tax states keep more of their income.

✅ Permanent Lower Income Tax Rates
The current reduced tax rates for individuals and married couples have been made permanent, giving more long-term certainty to households planning for homeownership and financial growth.

✅ Mortgage Interest Deduction Preserved
A major win for homeowners: the bill maintains the mortgage interest deduction at current levels—protecting one of the most valuable incentives for buying and owning a home.

✅ Continued Protection of 1031 Exchanges
Real estate investors will be relieved to know that like-kind exchanges remain untouched, preserving this important tool for building long-term wealth.

🎯 Bonus Benefits That Boost Housing Affordability:

• Increased Child Tax Credit to $2,500 (2025–2028) – supporting family budgets.

• Tax-Advantaged Child Investment Accounts – can be used for first-time home purchases.

• Expanded Low-Income Housing Tax Credit – encouraging affordable housing development.

• Permanent Estate & Gift Tax Threshold at $15M – preserving generational wealth.

• Renewed Opportunity Zones – incentivizing investment in underserved areas.

🗳 What Do Voters Think?

In a recent national survey commissioned by NAR, a strong majority of Americans supported these reforms:

• 91% favor keeping the mortgage interest deduction.

• 86% back lower individual tax rates.

• 83% support tax breaks for small businesses and independent contractors.

• 80% support tax incentives to boost investment in underserved communities.

💬 Final Thoughts

This bill still needs to pass the Senate, and changes are possible—but this is a huge step forward. As your real estate resource, I’ll keep you updated as the bill progresses and break down what it means for your buying, selling, or investing plans.

Thinking about how these changes impact your real estate goals?
Let’s talk! I’d be happy to run the numbers and help you make smart moves in this evolving market.