Real Estate’s Tax Bill Glow-Up (and What to Actually Pay Attention To)

Real Estate’s Tax Bill Glow-Up (and What to Actually Pay Attention To)

Let’s be clear: this isn’t a celebration of the bill as a whole. The One Big Beautiful Bill Act is as polarizing as its name is absurd, packed with political flashpoints that go far beyond real estate. But buried in the fine print? Some surprisingly strategic wins for homeowners, investors, and anyone thinking about long-term property planning.

And while most of the media is focused on border controls and Medicaid headlines, behind the scenes? This bill quietly delivered some seriously strategic goodies for homeowners, sellers, investors, and yes, even your CPA.

So if you’re sitting on a West Shore lakefront, weighing a legacy sale, or wondering how all this affects your tax strategy—here’s what you actually need to know.

It’s not all sunshine and deductibility, but these five changes could seriously shift how you play the market this year:

1. SALT Deduction Cap: Super-Sized (Temporarily)

It’s back, baby. The deduction for state and local taxes just jumped to $40,000 for households earning under $500K. For Tahoe-area buyers and sellers, especially those crossing state lines between CA and NV, that’s real money.
Expires in 5 years—aka, use it while you can.

2. Mortgage Interest Deduction: Still Standing

Still deductible up to $750K. No change, but in a market where mortgages often cross the million-dollar line, keeping this alive keeps buyers sane.

3. Section 1031 Exchange: Not Dead Yet

Despite constant political threats, 1031 exchanges survived. Real estate investors can still defer capital gains when rolling over into a new property. High-five your tax attorney.

4. Estate & Gift Tax: Massive Lift, No Sunset

The federal estate tax exemption is now $15M per person / $30M per couple—permanently. This is the wealth transfer window you’ve been waiting for, especially if you’re holding legacy homes in Glenbrook, Lahontan, Martis Camp, or lakeside family trusts.
This deserves a sidebar →

5. QBI Deduction: More Savings for REALTORS®

Your Qualified Business Income deduction will rise to 23% after 2025. More than 90% of real estate pros are independent contractors—so if that’s you, congrats. This is your reward for surviving 2023–2024.

Sidebar: The Estate Tax Transfer Window Is Open—And It’s Luxe

Before this bill passed, the estate tax exemption was about to fall off a cliff at the end of 2025. Now? You’ve got runway.

• New exemption: $15M single / $30M married

• Applies to: Lifetime gifts and inheritance

• Best used by: High-net-worth families, legacy homeowners, and trust-holders sitting on generational Tahoe real estate

If your name’s on the deed to a West Shore estate, Martis mountain-modern, or that vintage cabin your kids are emotionally attached to—this is the moment to start planning. You don’t want the IRS as your accidental heir.

Tahoe TL;DR: Why This Matters Now

• You’ve got 5 years of enhanced SALT deduction and wealth transfer upside.

• 1031 exchanges are safe (for now), so investors: keep playing smart.

• If you’re sitting on property you plan to gift, sell, or reinvest, talk to your tax advisor before holiday décor hits the shelves.

• This bill could fuel movement in the Tahoe luxury market—and you’ll want to get ahead of the shift.

Sources:

• California Association of REALTORS®

• NAR Public Policy

• Inman News