Big Beautiful Bill

Is Your Real Estate Portfolio Positioned for the New Tax Rules?

---

The recently passed “Big Beautiful Bill” represents a significant step forward for many sectors of the economy, and the real estate industry is no exception. While the bill encompasses a wide range of national priorities—from healthcare to immigration reform—it also introduces several substantial policy changes that directly impact real estate investors, multifamily property owners, and developers. These updates are designed to increase capital reinvestment, improve tax efficiency, and reduce the financial barriers associated with property improvements and financing. For those involved in real estate, these changes offer both immediate financial benefits and long-term strategic value.

This is an important moment for those looking to optimize their real estate investments. Whether you're planning large-scale renovations, managing multiple properties, or exploring new acquisitions, these provisions can significantly improve your financial outlook and operational flexibility. Understanding how these laws work—and how they apply to your specific situation—can help you make more informed, cost-effective decisions in the months and years ahead.

🔑 Key Provisions from the “Big Beautiful Bill”:

• 100% Bonus Depreciation Restored

  Investors can now fully deduct the cost of qualifying property improvements in the year they are made. This includes common upgrades like HVAC systems, roofing, and appliances, as well as certain commercial construction projects that begin between January 2025 and December 2029.

• Increased Section 179 Expensing Limit

  Property owners may now deduct up to $2.5 million per year in improvement costs. Eligible expenses include major capital investments such as appliances, structural upgrades, and energy systems. These expenses can be written off immediately instead of being depreciated over time.

• Permanent Mortgage Insurance Deduction

  Mortgage insurance premiums for PMI, FHA, or VA loans are now permanently tax-deductible, subject to income limitations. This change reduces long-term borrowing costs, particularly for those using low-down-payment loans.

These updates mark a shift in how real estate investments are supported through federal policy. By making capital improvements more financially viable and offering lasting tax relief on mortgage-related expenses, the bill creates an environment where investors and property owners can make smarter, more cost-effective decisions. I encourage you to review your current or upcoming projects with these provisions in mind.

If you would like a personalized consultation or a full breakdown of how these legislative changes may impact your holdings or strategy, our team is more than happy to assist.