Breaking: Major Tax Reform Passes House—What It Means for Homeowners, Buyers, and Investors
The House just passed a sweeping tax reform bill—the One Big Beautiful Bill Act—and it’s packed with good news for homeowners, real estate investors, and small business owners.
The bill includes several key real estate-friendly provisions that the National Association of REALTORS® (NAR) has long championed—many of which could directly benefit you as a homeowner, buyer, or investor here in the Greater Boston area.
Here’s What You Need to Know:
1. Bigger Deductions for Small Business Owners & Independent Contractors
The bill boosts the Qualified Business Income (QBI) deduction from 20% to 23%—a huge win for real estate professionals, freelancers, and small business owners.
2. SALT Deduction Gets a Major Upgrade
The State and Local Tax (SALT) deduction cap jumps from $10,000 to $40,000 for households earning under $500,000. This is especially impactful in high-tax states like Massachusetts.
3. Lower Individual Tax Rates Made Permanent
The bill locks in the current lower federal tax brackets—helping improve affordability and giving homebuyers more purchasing power.
4. Mortgage Interest Deduction Stays Intact
The mortgage interest deduction remains untouched and is made permanent, preserving a critical benefit for homeowners.
5. 1031 Like-Kind Exchanges Are Protected
Real estate investors can breathe easy—this powerful tax-deferral strategy is preserved and unchanged.
Other Highlights You Should Know:
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Child Tax Credit Increases to $2,500 (2025–2028), which could support housing affordability for growing families.
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New Child Investment Accounts could be used to help children save for a first home.
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Estate Tax Exemption Set at $15M—supporting multigenerational wealth planning.
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Low-Income Housing Tax Credit Expanded to encourage more affordable housing development.
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Opportunity Zones Renewed with new incentives for investing in underserved communities, including rural areas.
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No New Top Tax Rate and no changes to carried interest or business SALT deductions for real estate professionals.
Why This Matters:
This legislation represents a win for the housing market, homeowners, and the professionals who support them. It reinforces tax advantages that make homeownership more attainable, investing more appealing, and property ownership more rewarding.
As this bill heads to the Senate, changes are still possible—but the foundation is strong. I’ll continue to monitor developments and share how they may impact Boston-area real estate.
Have questions about how these updates affect your buying, selling, or investment plans? Let’s connect.
