House Passes Major Tax Reform with Big Wins for Homeowners and Real Estate Professionals
Date: July 2, 2025
Category: Tax Reform | Real Estate News | Homeownership
The U.S. House of Representatives just passed the long-anticipated One Big Beautiful Bill — a sweeping tax reform package that delivers significant wins for homeowners, real estate professionals, and communities nationwide.
Backed strongly by the National Association of REALTORS® (NAR), this bill locks in and expands several key tax benefits that directly shape the real estate market, support independent contractors, and help American families build wealth through homeownership.
🔑 Key Wins for Real Estate Professionals and Homeowners
✅ Qualified Business Income Deduction Increased
Over 90% of REALTORS® are self-employed or small business owners. The bill permanently increases the Qualified Business Income (QBI) deduction from 20% to 23%, delivering meaningful tax relief for agents and brokers who work as independent contractors.
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✅ Mortgage Interest Deduction Preserved
One of the biggest wins: the Mortgage Interest Deduction (MID) stays intact and is now permanent. With 91% of voters supporting this benefit, keeping it helps protect affordability for homeowners and strengthens market stability.
✅ Section 1031 Like-Kind Exchanges Protected
Investors can breathe a sigh of relief: Section 1031 like-kind exchanges remain protected, allowing property owners to reinvest proceeds into new properties tax-deferred — a critical tool for growing portfolios.
✅ Individual Tax Rates Made Permanent
Lower individual tax rates, first reduced in 2017, are now permanent and indexed for inflation. This means more money in the pockets of everyday Americans — and more opportunity for future homeowners to save for their next move.
📌 Other Positive Provisions for Real Estate
The bill also includes:
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Low-Income Housing Tax Credit improvements to boost affordable housing.
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Renewed Opportunity Zone incentives to encourage investment in underserved areas.
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A temporary increase in the child tax credit to $2,500 through 2028.
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Permanent estate and gift tax thresholds set at $15 million to help families transfer generational wealth.
⚖️ What Happens Next?
The bill now heads to the Senate for debate and possible changes. NAR says it will remain fully engaged to protect real estate-friendly provisions every step of the way.
“This bill supports hardworking families and strengthens the real estate economy,” says Shannon McGahn, NAR’s chief advocacy officer. “With lower tax rates, SALT relief, and incentives for small businesses and communities, this proposal brings real benefits to everyday Americans.”
✅ Stay Informed
At SRQ Coastal Living, we’re watching this closely to keep you informed. Whether you’re buying your first home, selling, or investing, we’re here to help you make the best decisions for your future.
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