What the One Big Beautiful Bill Act (H.R. 1) Means for Real Estate Buyers, Investors, and Businesses
Navigating the changing landscape of real estate sometimes feels overwhelming—but smart, timely decisions can open new doors to owning or investing in property. The recently passed One Big Beautiful Bill Act (H.R. 1) brings a host of powerful tax benefits and incentives that can make a real difference for buyers, investors, and businesses. Here’s what you need to know about how these provisions work—and how Usaj Realty can help you make the most of them.
🏠 1. Mortgage Insurance Deduction Restored
For many homebuyers, especially those using low down‑payments, mortgage insurance can be a necessary part of securing a loan. The good news: H.R. 1 reinstates the mortgage insurance deduction, averaging about $2,364 in yearly savings for qualified buyers.
While the bill also raises the standard deduction (to $31,500 for joint filers), homeowners carrying mortgage insurance often find that itemizing delivers even greater tax savings. If you’re weighing your options, we’re happy to walk you through your unique numbers and find the best tax approach for you.
Usaj Realty Tip: First-time buyers often worry about extra costs like mortgage insurance. Our brokers can break down your options and help you maximize these valuable deductions.
📈 2. Expanded State & Local Tax (SALT) Deduction
One of the biggest wins for buyers, especially in higher-tax areas such as Denver and across the Front Range, is the newly expanded SALT deduction. The cap jumps from $10,000 to $40,000 (indexed through 2033 and then made permanent). This means you can now deduct far more of your property and state income taxes—a direct boost to your after‑tax affordability.
If you’ve been stretching your budget to buy in a community with higher property taxes, this provision may make homeownership more achievable—and cost‑effective—than you thought.
Usaj Realty Tip: We’ve seen clients save thousands simply by maximizing their SALT deductions. Let us show you how this works for your target neighborhoods.
🏗 3. Boosted Depreciation & Expensing
Are you considering an investment property, new build, or commercial real estate? The Act restores 100% bonus depreciation for qualifying property placed in service between January 2025 and December 2029. It also extends Section 179 expensing and pass-through deductions, so owners can write off substantial costs even faster.
This accelerated tax treatment means you can lower your taxable income dramatically in the year you acquire a property—a huge advantage for developers, flippers, and rental property investors looking for immediate returns.
Usaj Realty Tip: Investors, don’t leave money on the table. We’ll help you structure your acquisitions to take maximum advantage of depreciation, expensing, and all eligible tax write-offs.
🏘 4. Expanded Incentives for Affordable & Low-Income Housing
H.R. 1 significantly enhances the Low-Income Housing Tax Credit, aiming to support the creation of over a million affordable homes between 2026 and 2035. For buyers, investors, or developers interested in affordable housing, this opens the doors to social impact and stable financial returns.
Notably, the bill also makes Opportunity Zone incentives permanent—encouraging growth and redevelopment in underinvested neighborhoods. This is a win for communities and for those looking to build generational wealth while making a difference.
Usaj Realty Tip: If you want your investment to have an impact beyond personal gain, we’ll show you affordable housing and Opportunity Zone options that align with your goals.
🏦 5. Favorable Pass-Through and REIT Provisions
If you invest through an LLC, partnership, or enjoy REIT dividends, H.R. 1 brings more good news: the 20% Qualified Business Income (QBI) deduction is now permanent for real estate pass-throughs and REIT dividends.
This means your investments remain as tax‑efficient as ever, with favorable treatment on income through both private real estate businesses and public REITs. If you’re thinking of diversifying your real estate portfolio, these provisions help keep returns strong and taxes in check.
Usaj Realty Tip: Whether you’re new to REIT investing or expanding into pass-through entities, our team can help you evaluate structures that maximize your after‑tax yield.
⚖ Why It’s a Good Time To Buy Real Estate Now
Timing is everything, especially when tax rules are scheduled to phase in or sunset. Here’s why acting soon may be especially advantageous:
| Advantage | Description |
| Tax acceleration | Buy before end of 2029 to benefit from full upfront depreciation. |
| Lower taxable income | Itemized deductions (mortgage, SALT) often outpace the standard deduction, maximizing your savings. |
| Strong investor incentives | Low-income housing credits and permanent Opportunity Zones support profitability and community growth. |
| Business-friendly rules | Reduced pass-through taxes and robust REIT/1031 provisions spur investor activity and returns. |
Many of these enhanced deductions and credits are available only through 2029–2033, or are being made permanent for the first time. Getting in now lets you maximize these tax windows and secure properties before potential tax changes arrive.
🔍 What This Means for You
- Homebuyers: Enjoy lower up‑front costs (thanks to the mortgage insurance deduction) and expanded SALT deductions that can lead to meaningful annual tax savings.
- Rental Property Investors / Developers: Leverage upfront deductions (bonus depreciation, Section 179) for substantial near-term returns, and tap Opportunity Zones and affordable housing credits for financial and social impact.
- Commercial & REIT Investors: Rely on sustained pass-through deductions and improved REIT dividend treatment to keep your investments tax‑efficient and attractive in any market.
🏁 The Bottom Line—and How Usaj Realty Helps You Succeed
The One Big Beautiful Bill Act is more than just legislation; it’s a unique chance to move confidently in the real estate market, whether you’re a buyer, an investor, or a business owner. From restoring valuable deductions and expanding credits to fostering business‑friendly rules that enhance returns, these changes stack the odds in your favor.
At Usaj Realty, we don’t just keep up with these changes—we guide you through them, one step at a time. Our team is committed to helping you make the best decisions for your future, offering expert insight, real‑world experience, and caring support no matter your goals.
Ready to take the next step? Contact Usaj Realty today and let’s talk about optimizing your real estate journey in light of H.R. 1’s advantages. We’re here to answer your questions, model your potential savings, or craft an investor‑friendly strategy—all tailored to what matters most to you.
There’s never been a better time to buy or invest in real estate. With Usaj Realty by your side, your path to success is wide open.
