One Big Beautiful Bill Is In — and Real Estate Wins

Min 1

On July 4, 2025, Congress passed a new law called the “One Big Beautiful Bill.” Real estate investors should pay attention. This bill brings back some major tax benefits. It also gives new power to Opportunity Zones and changes a few rules that could help you keep more of your income.

Min 2

The big headline? 100% bonus depreciation is back. That means you can now deduct the full cost of certain properties or upgrades in the same year you make the investment. Before this bill, the deduction had dropped to 40% in 2025. This change gives investors a big break, especially for deals that need new appliances, systems, or materials. The law also sets new rules for business property and may phase out bonus depreciation starting in 2030, but the full benefit is in place now.

Min 3

The bill also upgrades Opportunity Zones (OZs) — areas marked for investment in struggling communities. These zones were already a smart way to delay or lower capital gains taxes. Now the program is permanent. There will be new zones added every 10 years. And new Rural OZs offer extra tax breaks. If you hold a rural OZ investment for 5 years, you could get a 30% increase in your tax basis, which means more tax-free profit when you sell.

Min 4

The Low-Income Housing Tax Credit (LIHTC) also gets stronger. The government lowered the bond use rule, making it easier to qualify for the 4% credit. They also added 12.5% more funding to the 9% credit. This could be a big deal for investors in affordable housing, especially in growing cities where cash flow is tight. More incentives mean better margins and faster deal approvals.

You also get a temporary lift from the SALT cap, which rises from $10,000 to $40,000 through 2029 for those making under $500,000. And the QBI deduction — a 20% break on business income — is now permanent for pass-throughs like LLCs. More ways to save, fewer reasons to wait.

Min 5

Here is the real takeaway: This new law will not fix high interest rates, but it gives smart investors better ways to build and keep wealth. Depreciation cuts your tax bill. OZs help you grow gains tax-free. LIHTC rewards you for solving the affordable housing crisis. And new rules mean faster entry for small investors, not just big firms. Every dollar you keep is a dollar you can reinvest. And that is where the edge is right now.

See you tomorrow,

-The 5