Follow-Up: How the “Big Beautiful Bill” Expands Real Estate Opportunities

A few weeks ago, we shared how the “Big Beautiful Bill” introduced powerful incentives for property owners and investors—such as restored bonus depreciation, increased Section 179 expensing, and permanent mortgage insurance deductions. These changes were just the beginning.

Now, as the full scope of the legislation becomes clearer, there are additional provisions that directly affect real estate investors, multifamily owners, and developers. These updates not only strengthen the financial advantages of property ownership but also provide long-term stability for planning and reinvestment.

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-🔑 New & Noteworthy Real Estate Provisions-

1. Higher Estate & Gift Tax Exemptions

The estate and gift tax exemption has been permanently raised to $15 million for individuals and $30 million for married couples (inflation-indexed beginning in 2026). For those holding highly appreciated real estate, agricultural land, or investment portfolios, this dramatically reduces the tax burden of transferring assets to heirs or trusts.

➡️ Real estate application: If you’ve been considering passing down property or transitioning a family business, this change may be the best opportunity in a generation to do so efficiently.

2. Enhanced SALT Deduction

The State and Local Tax (SALT) deduction limit has increased to $40,000 (with a 1% annual increase through 2029 for households earning under $500,000). This is especially meaningful in high-tax states like California, New York, and New Jersey, where property taxes and state income tax obligations weigh heavily.

➡️ Real estate application: For homeowners and investors, this provides real relief when balancing mortgage interest, state income tax, and local property taxes.

3. Immediate Write-Offs for Qualified Capital Investments

Building on the restored 100% bonus depreciation, Section 179 rules now expand to cover a broader range of capital improvements. Property owners can deduct qualifying improvements—including energy-efficient systems, safety upgrades, and technology infrastructure—immediately, rather than depreciating them over years.

➡️ Real estate application: This allows multifamily and commercial property owners to boost property value and tenant satisfaction today, while improving cash flow for tomorrow.

4. Stability Through Permanent Tax Rates

The bill cements the current tax brackets, keeping the top rate at 37% rather than reverting to 39.6%, and preserving favorable long-term capital gains and dividend rates.

➡️ Real estate application: This certainty helps investors model cash flows more reliably, whether evaluating acquisitions, syndications, or long-term holds.

5. Senior Bonus Deduction

An additional $6,000 deduction for those 65+ ($12,000 for married couples where both qualify) helps retirees reduce taxable income.

➡️ Real estate application: Retirees relying on rental income, Social Security, or pension distributions will see lighter tax exposure—making retirement real estate investments more sustainable.

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📌 What This Means for You

The combination of these updates creates a rare alignment: reduced tax exposure, faster write-offs, and greater estate-planning advantages, all directly tied to real estate ownership.

For investors, it’s a chance to scale portfolios while maximizing after-tax returns.For multifamily and commercial owners, it means upgrading and repositioning properties with immediate tax efficiency.For retirees and families, it represents a clearer, more cost-effective path to passing down real estate and preserving wealth.