Tax laws are ever-changing, impacting property owners ranging from those managing residential homes to commercial real estate investors. The One Big Beautiful Bill Act (OBBBA), enacted on July 4, 2025, brings significant updates that everyone in the property market should understand to leverage opportunities and optimize tax strategies, from self-employed home loan facilitators to those handling investor cash flow mortgages.

Updates for Homeowners

OBBBA makes private mortgage insurance and FHA premiums permanently deductible, vital for those using FHA loans. However, weighing this against the increased standard deduction ($15,750 for individuals and $31,500 for couples) is essential. Notably, mortgage interest deductions remain for loans up to $750,000, benefiting those with jumbo loan mortgages.

SALT Deduction and Other Considerations

The new SALT deduction cap is $40,000, phasing out for incomes over $500,000, vanishing by 2029. While no new federal down payment or first-time buyer credits exist, exploring local programs can reveal options, particularly for first-time homebuyer loans.

Energy Credits and Commercial Property Insights

Energy-related credits expire on December 31, 2025. Embrace solar and energy upgrades to utilize the 30% Residential Clean Energy Credit. Commercial developers can benefit from the 100% bonus depreciation for properties in service from January 2025 and should be aware of incentives related to Opportunity Zones.

Strategic Steps Forward

Evaluate if itemizing benefits your financial situation more than standard deductions with interest coverage from loans like VA or USDA loans. Stay proactive with energy upgrades and consider accelerating improvements to leverage the remaining 179D and 45L benefits. Align strategies with professionals to take full advantage of expiring incentives.

Understanding these tax changes and acting strategically can significantly affect financial outcomes. Whether dealing with refinancing options or complex investment property loans, staying informed and consulting with professionals ensures optimal tax efficiency.