The One Big Beautiful Bill Becomes Law: Key Real Estate Tax Changes

Signed into law on July 4, 2025, by President Trump, the One Big Beautiful Bill Act has ushered in significant changes to the landscape of real estate taxation. This new legislation not only extends but also modifies key provisions from the Tax Cuts and Jobs Act of 2017, providing a fresh wave of business incentives and reforms that are particularly beneficial to the real estate industry.

The Act’s implications are far-reaching. It offers a myriad of opportunities for taxpayers to reduce their tax burdens, with notable expansions in benefits for Opportunity Zone investors. This move is expected to increase the availability of low-income housing and new markets tax credits, fostering a more inclusive economic environment.

Congress passes amendments

Interestingly, the Act omits some of the more controversial proposals from previous versions, such as the so-called “Revenge Tax.” Instead, it introduces new incentives for qualified production activities, which are poised to encourage onshoring of manufacturing.

Key Provisions

One of the standout features of the Act is the permanent extension of the 20% deduction under Section 199A for certain individuals, trusts, and estates. This extension is a boon for those involved with partnerships, S corporations, and sole proprietorships, as well as those receiving qualified REIT dividends.

Moreover, the Act reinstates the 100% bonus depreciation under Section 168(k) for qualified property, a move that is expected to stimulate economic activity by encouraging investment in tangible personal property.

Looking Ahead

As the real estate sector begins to navigate these changes, all eyes will be on the Internal Revenue Service (IRS) and the Treasury for further guidance. The continuous monitoring and updates from these bodies will be crucial in ensuring that businesses and investors can effectively leverage the new opportunities presented by the Act.

For more detailed insights, readers can explore the impact on energy-related tax credits and other related topics on the Jones Day website.

More Articles

Getting licensed or staying ahead in your career can be a journey—but it doesn’t have to be overwhelming. Grab your favorite coffee or tea, take a moment to relax, and browse through our articles. Whether you’re just starting out or renewing your expertise, we’ve got tips, insights, and advice to keep you moving forward. Here’s to your success—one sip and one step at a time!

The Racist Beginnings of Standardized Testing

As the nation grapples with the legacy of standardized testing, a stark reality is coming to light—the tests that have long been a staple of the American educational system are rooted in a history of racial bias. According to a report by the National Education Association (NEA), these tests have disproportionately affected students of color, particularly those from low-income families.

By |April 20, 2025|Categories: Article, Education, Social Issues|Tags: , |0 Comments

Proposal 47 and COVID-19: Unraveling California’s Crime Surge

Proposition 47, enacted in November 2014, was a landmark reform that reclassified certain non-violent drug and property offenses from felonies to misdemeanors. This legislative shift led to a significant reduction in the state's prison population, saving approximately $800 million, which was redirected to fund treatment and diversion programs.

By |April 20, 2025|Categories: Article, Crime, Public Policy|Tags: , |0 Comments

The Real Impact of School Capital Spending: Education or Property Value Boost?

As families consider relocating, the quality of local public schools often becomes a pivotal factor. The allure of modern athletic facilities, spacious classrooms, and cutting-edge technology in science and computer labs can be irresistible for parents who equate these attributes with a superior education.

By |April 19, 2025|Categories: Article, Economics, Education|Tags: , |0 Comments

Top 5 Online Real Estate Schools in California for 2025

Five standout online real estate schools have been identified as the best options for those looking to kickstart their careers in 2025. These schools are tailored to fit various budgets and learning preferences, ensuring that every prospective agent can find a suitable path to success.

By |April 19, 2025|Categories: Article, Education, Real Estate|Tags: , |0 Comments

Commercial Real Estate Set for Transformative Growth by 2025

The commercial real estate sector is poised to navigate through a transformative phase as it heads into 2025, now facing a generational opportunity to reposition itself strategically for the future.

By |April 18, 2025|Categories: Article, Business, Real Estate|Tags: , |0 Comments

Navigating SEC’s 2025 Exam Priorities: What You Need to Know

The Securities and Exchange Commission (SEC) has unveiled its examination priorities for 2025, focusing on key areas such as investment advisers, broker-dealers, cybersecurity, and crypto assets. This announcement, detailed by Eric Mikkelson and Carissa Occhipinto from Stinson LLP, provides a roadmap for registered investment advisers, investment companies, and broker-dealers to prepare for potential examinations.

By |April 18, 2025|Categories: Article, Finance, Regulation|Tags: , |0 Comments