• NAR Tax Wins in One Big Beautiful Bill Act -- On July 4, 2025, President Trump signed into law H.R. 1, the One Big Beautiful Bill Act. This massive legislation includes some very important wins for NAR members and for the real estate industry. Here are the most significant victories: The 20 percent Qualified Business Income Deduction (Section 199A) is made permanent and improved. • More than 90% of NAR members are independent contractors or owners of pass-through entities and will be able to continue to enjoy this significant deduction. The reduced tax rates, higher standard deduction, and increased child tax credit initiated by the Tax Cuts and Jobs Act of 2017, which were set to expire at the end of 2025, are extended permanently and enhanced. • This will avoid the economic shock to the nation that was probable if the reductions were allowed to expire. The $10,000 state and local tax (SALT) deduction limit from the TCJA is temporarily quadrupled to $40,000 for tax years 2025 through 2029. • This represents a large tax benefit for many who pay a lot of state and local taxes and should also make it easy for current and prospective homeowners to better afford their homes. Opportunity Zones are extended permanently, including the full exclusion of capital gain on OZ investments held for 10 years, and strengthened. • This will provide new tax incentives for those with capital gains who wish to re-direct their investments and continue to defer their tax. It is expected to be a boon to commercial real estate, and especially in rural areas that received more benefits under the Act. The Estate and Gift Tax threshold is set permanently to $15 million per person, plus adjustments for future inflation. • This relieves a huge potential headache for large family-owned businesses who are planning to pass them down to younger family members. The Act increases permanently the allocation of low-income housing credits to states by 12 percent and permanently lowers the requirement for private bond financing for these projects without a state credit allocation from 50 percent to 25 percent. • This change is projected to increase the number of affordable housing units by 1.22 million over the next decade.
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