Your weekly perch for all things real estate.

This week, Congress remembered that homeowners vote. The GOP dropped a tax reform draft so friendly to property investors that the National Association of Realtors nearly passed out from gratitude. From SALT deduction boosts to preserving beloved 1031 exchanges, it’s like Christmas in May…But without the HOA fine for putting up lights early.

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Story: Despite the stalling of the bill (and then progress yesterday), the House GOP’s new tax reform draft is a real estate investor’s vision board that has come to life. The bill, if passed, hits all the right notes: it makes the mortgage interest deduction permanent, triples the SALT cap (for most), boosts the qualified business income (QBI) deduction for small businesses and independent contractors (looking at you, landlords), and keeps the golden goose 1031 exchanges fully intact.

So What? If this bill passes in anything close to its current form, real estate investors and small landlords win big. Permanent deductions mean long-term planning without the anxiety of Congress yanking benefits away every few years. That QBI bump to 23%? That’s more cash in your pocket. And the preservation of the 1031 exchange means your upgrade-from-duplex-to-quadplex plan just got a green light. It’s also a win for housing affordability: keeping deductions and tax credits in place helps more people buy homes, or at least makes the financing conversation slightly less terrifying.

What’s Next? This is just the first draft. Expect the usual sausage-making over the coming months as Congress tweaks the bill, lobbies do their thing, and someone tries to sneak in a bridge to nowhere. Formal markup has already started, so keep a close watch on how the SALT cap evolves and whether any of these perks get trimmed to make room for other priorities. But for now, it’s a bullish signal that real estate remains a favored child in tax policy discussions.

Source: NAR

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