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!

FTC’s Non-Compete Ban Blocked: Implications for U.S. Physicians and Workers

As the future of non-compete bans remains murky, physicians, who make up a significant portion of affected professionals, are left pondering the implications on their careers and the healthcare landscape.

By |October 27, 2024|Categories: Article, Healthcare, Legal|Tags: |0 Comments

Florida Housing Market: A Resilient Outlook Amidst Economic Fluctuations

In conclusion, while the Florida housing market may experience fluctuations and stabilization in growth rates, a crash seems unlikely. The combination of economic fundamentals, population growth, and the state's inherent appeal suggests a market that will continue to attract interest and investment.

By |October 27, 2024|Categories: Article, Economics, Real Estate|Tags: , |0 Comments

Strategic Foresight in Commercial Real Estate: Embracing Change by 2025

As the sector stands at a crossroads, organizations that embrace these changes and invest in sustainable, technologically advanced solutions are likely to thrive in the coming years.

The Future of the Housing Market: A Decade of Change

The housing market has been on a rollercoaster ride in recent years, with prices skyrocketing due to a combination of pandemic-induced shifts and historically low interest rates. As we look forward to the next decade, prospective homebuyers are left pondering: Will prices continue their upward trajectory? How will affordability be affected?

By |October 27, 2024|Categories: Article, Finance, Real Estate|Tags: , |0 Comments

Commercial Real Estate Faces Uncertain Terrain

The complexities of economic shifts, policy changes, and emerging trends have created a dynamic environment for stakeholders.

Los Angeles Revolutionizes Affordable Housing Policy

In a city where the notion of a "100% affordable project" without public funding once seemed a contradiction, Los Angeles is witnessing an unprecedented transformation.