What Trump’s “Big Beautiful Bill” Means for Real Estate
This past July, the One Big Beautiful Bill Act became law. It’s a sweeping package that, among other things, locks in several real‑estate‑friendly tax rules.
A few highlights, each of which are beneficial to real estate investors:
Bonus depreciation restored to 100% and made permanent. This form of accelerated depreciation was set to phase out in 2026. By being restored, it allows property owners to deduct 100% of qualifying assets outside of the traditional depreciation schedule, a major win for interior buildouts.
Opportunity Zones renewed and strengthened—no more 2026 “cliff.” More redevelopments / developments will be economically feasible as a result.
Other – Interest deduction rules were eased. Affordable housing was granted additional capacity. And 1031 exchange rules remain in place. Notably, changes to the rules of the 1031 exchange has been a recurring over the years but has yet gain any real traction.
The bill reinforces and cements real estate’s roll as a tax efficient alternative investment. The bonus depreciation, opportunity zone’s continuation, and not altering the 1031 incentivizes continued liquidity particularly during growth cycles.
Just this month (Aug-25), the administration issued an executive order to allow individuals’ 401(k)s the ability to invest into broader alternative assets specifically including real estate (along with private equity, private credit, and digital assets.) Final rules are pending but the upside for real estate if/when implemented is significant. As of Q1 2025, $8.7 trillion dollars is held in individuals 401ks.1