07/04/2025
PSA...
🏛️ Trump’s New Tax Bill Just Passed – Here’s What It Means for Real Estate & Homebuyers
🔑 Key Takeaways:
1. SALT Deduction Increased (Great for High-Tax States)
• Homeowners can now deduct up to $40,000 in state and local taxes (SALT), up from $10,000 before — but only if they make under $500K/year.
👉 Why this matters: This is a big win for buyers in high-tax areas like NY, NJ, and CT. It makes owning a home more affordable again in areas with high property taxes.
2. Mortgage Interest Deduction Cap Stays at $750K
• No changes here. Buyers can still only deduct mortgage interest on up to $750,000 in loan amount.
👉 This mainly impacts luxury buyers—there’s still solid tax value for most buyers under that limit.
3. Bigger Tax Breaks for Real Estate Investors & Business Owners
• Investors and LLC owners can still deduct up to 20% of their business income—and that may go up to 23%.
• 100% bonus depreciation stays in place for new commercial property and certain improvements.
4. Estate Tax Exemption Locked In
• The amount you can pass on without estate taxes will stay very high (around $15 million per person).
👉 Helpful for high-net-worth person doing long-term planning.
5. Potential Impact on Mortgage Rates
• The bill could add to the national deficit, which may lead to higher mortgage rates over time.
👉 Important for buyers on the fence—locking in now could protect them if rates rise.