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Buying a Home, Downsizing, First Time Homebuyer, Real Estate Agent, Sellers Market, Selling Tips, The Real Estate Market, Taxes, InvestorPublished May 22, 2025
Real Estate Gets a Boost from New Tax Law — Here's What It Means for You
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Congress just passed a sweeping new tax bill — and if you own real estate, want to buy a home, or are thinking about selling, this is big news.
Here’s what you need to know, broken down by who you are:
That means you’ll still be able to deduct interest on your mortgage every year, a major tax benefit for most homeowners.
SALT Deduction Cap Increased
If you itemize deductions, you can now deduct up to $40,000 in state and local taxes (up from $10,000) — as long as your household earns under $500,000. This is especially impactful in high-tax states like New York, New Jersey, and California.
Lower Individual Tax Rates Extended
Lower tax brackets mean more money in your pocket, better affordability, and more financial stability for homeowners.
Increased Child Tax Credit
Families will benefit from a bigger credit, creating more financial breathing room.
Tax-Advantaged Child Investment Accounts Can Be Used to Buy a Home
New rules allow money saved in these accounts to be used toward the purchase of a first home — a big plus for young adults and families planning ahead.
Affordable Housing May Increase
An expansion of the Low-Income Housing Tax Credit (LIHTC) means more affordable housing could be on the way, easing the crunch for first-time buyers.
Homeownership Stays Tax-Favored
Keeping the mortgage interest deduction in place maintains the financial incentives of owning vs. renting.
Section 1031 Like-Kind Exchanges Are Safe
Investors can still defer capital gains taxes by swapping investment properties — a key strategy for building wealth through real estate.
Capital Gains and Carried Interest Rules Unchanged
There were no increases to top tax rates or changes to capital gains, preserving the financial advantages of selling property under current rules.
Estate Tax Exemption Set at $15M
This helps high-net-worth individuals pass property on to heirs with fewer tax consequences.
Opportunity Zones Are Renewed
These programs allow you to defer or reduce capital gains by investing in underserved areas — still a powerful tool for long-term wealth growth.
This tax reform bill helps protect and encourage homeownership and real estate investment. It strengthens the long-term value of owning property, makes it easier for buyers to get in the game, and keeps investment strategies viable for sellers.
If you’re wondering how these changes affect your situation — whether you're looking to buy, sell, or just plan for the future — I’d love to help.
Reach out anytime to Rebecca@AaronBatesRealEstate.com for a personalized look at what this could mean for you.
Here’s what you need to know, broken down by who you are:
Let's say You're a Homeowner
Mortgage Interest Deduction (MID) is here to stay — permanently.That means you’ll still be able to deduct interest on your mortgage every year, a major tax benefit for most homeowners.
SALT Deduction Cap Increased
If you itemize deductions, you can now deduct up to $40,000 in state and local taxes (up from $10,000) — as long as your household earns under $500,000. This is especially impactful in high-tax states like New York, New Jersey, and California.
Lower Individual Tax Rates Extended
Lower tax brackets mean more money in your pocket, better affordability, and more financial stability for homeowners.
Increased Child Tax Credit
Families will benefit from a bigger credit, creating more financial breathing room.
What if you're a Potential Homebuyer
Tax-Advantaged Child Investment Accounts Can Be Used to Buy a HomeNew rules allow money saved in these accounts to be used toward the purchase of a first home — a big plus for young adults and families planning ahead.
Affordable Housing May Increase
An expansion of the Low-Income Housing Tax Credit (LIHTC) means more affordable housing could be on the way, easing the crunch for first-time buyers.
Homeownership Stays Tax-Favored
Keeping the mortgage interest deduction in place maintains the financial incentives of owning vs. renting.
And, What about Home Sellers and Investors
Section 1031 Like-Kind Exchanges Are SafeInvestors can still defer capital gains taxes by swapping investment properties — a key strategy for building wealth through real estate.
Capital Gains and Carried Interest Rules Unchanged
There were no increases to top tax rates or changes to capital gains, preserving the financial advantages of selling property under current rules.
Estate Tax Exemption Set at $15M
This helps high-net-worth individuals pass property on to heirs with fewer tax consequences.
Opportunity Zones Are Renewed
These programs allow you to defer or reduce capital gains by investing in underserved areas — still a powerful tool for long-term wealth growth.
What it Means for You
This tax reform bill helps protect and encourage homeownership and real estate investment. It strengthens the long-term value of owning property, makes it easier for buyers to get in the game, and keeps investment strategies viable for sellers.If you’re wondering how these changes affect your situation — whether you're looking to buy, sell, or just plan for the future — I’d love to help.
Reach out anytime to Rebecca@AaronBatesRealEstate.com for a personalized look at what this could mean for you.
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