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!

Surviving the Storm: Navigating Insurance and FEMA After Hurricane Helene

In the aftermath of Hurricane Helene, homeowners in North Carolina face the daunting challenge of securing compensation from insurance companies and the federal government. The process can be both infuriating and baffling, yet it is essential for recovery.

Tackling America’s Housing Affordability Crisis: The Power of Zoning Reform

Nearly half of all rental households in America are cost-burdened, spending over 30% of their income on rent. This financial strain is even more pronounced in areas with strong employment growth, where housing costs are highest. The paradox is clear: regions with the most economic opportunities present the greatest barriers to affordable housing.

By |October 14, 2024|Categories: Article, Housing, Policy Reform|Tags: , |0 Comments

Deloitte’s 2025 Commercial Real Estate Outlook: Opportunities and Challenges

The 2025 commercial real estate outlook presents a generational opportunity for organizations to redefine their strategies and embrace the future.

AI’s Role in Shaping Our Work Lives

The potential for AI to affect wage structures and income inequality is another critical discussion point. While AI could enhance productivity, it might also concentrate benefits among a select group.

By |October 14, 2024|Categories: Article, Artificial Intelligence, Future of Work|Tags: , |0 Comments

Tokenization: Reshaping Financial Landscapes

The advent of blockchain technology and decentralized finance (DeFi) is revolutionizing how we perceive and interact with financial markets. Central to this transformation is the concept of tokenization, a process that converts assets into digital tokens on a blockchain, enhancing security, accessibility, and liquidity.

By |October 14, 2024|Categories: Article, Finance, Technology|Tags: , |0 Comments

Revolutionizing Real Estate: The AI and Blockchain Advantage

The marriage of AI and blockchain promises to streamline transaction processing, significantly reducing paperwork and processing time. This newfound efficiency allows agents to handle more deals at their own pace, enhancing productivity and client satisfaction.

By |October 14, 2024|Categories: Article, Real Estate, Technology|Tags: |0 Comments