New Tax Law Locks In Huge Benefits for the Real Estate
On July 4, a big tax reform law was signed by President Trump and it’s got some great news for people in real estate, including buyers, homeowners and professionals like agents and investors.
After years of pushing for changes, the National Association of REALTORS® helped get some major wins written into the bill. These changes are meant to support the real estate market, make it easier to buy and own homes and help small business owners in the industry.
One of the biggest wins is that the lower individual tax rates from 2017 are now permanent. That means people can plan their finances with more certainty. Also staying for good is the special tax break for small business owners and independent contractors, which is a big deal for many Realtors who work for themselves.
Another big change starts in 2025. The amount of state and local taxes (also called SALT) that people can deduct will be four times higher than before, but only for five years. That’s helpful if you live in a place with higher property taxes. The bill also keeps the SALT deductions for businesses and protects something called 1031 exchanges. That’s just a fancy way of saying people can keep swapping investment properties without getting hit with a huge tax bill each time.
And one more important win, the mortgage interest deduction is now permanent. This helps homeowners save money on their taxes, especially when buying their first place or stretching to afford a home.
As NAR’s advocacy chief Shannon McGahn put it, these wins help everyone, from first time homebuyers to long-time owners and investors. And honestly, I think she’s right. When real estate stays strong, it helps entire neighborhoods and communities thrive.
In short, this new law is a major step forward for the housing market. It’s a reminder that when Realtors speak up and work together, good things can happen for everyone.
Source Inspiration: Realtor.com
