One Big Beautiful Bill: Key Takeaways

One Big Beautiful Bill (OBBB) – Key Takeaways for Our Clients

Permanent 100% Bonus Depreciation

• Real property investors can now fully expense qualifying building components immediately when placed in service after January 19, 2025—permanently.
• For multifamily owners, that means big immediate deductions (including land improvements, appliances, and QIP), supercharging first-year cash flow.

Expanded Interest Deductibility

• The business interest limitation now reverts to an EBITDA-based framework—so depreciation and amortization no longer reduce interest deductibility.
• In simpler terms: highly leveraged multifamily purchases remain tax-advantaged, especially when paired with cost segregation.

Enhanced Pass‑Through (QBI) Deduction

• The Qualified Business Income deduction for real‑estate pass‑through entities (LLCs, partnerships) is now permanent at 23% (up from 20%).
• That boosts owner after‑tax returns—an attractive selling point when structuring deals.

SALT Cap Increased

• The state and local tax deduction limit increases to $40,000 annually (phasing down for high earners), notably benefiting multifamily owners in high‑tax states.

LIHTC & Opportunity Zones Expanded

• The bill permanently boosts the 9% Low‑Income Housing Tax Credit and relaxes private‑bond financing requirements—making affordable housing projects more viable.
• Opportunity Zones are extended with extra incentives for rural investments, opening new equity sources.

Estate, Gift & Deferred Exchanges

• Estate and gift tax exemptions increase to $15 million per person, aiding wealthy multifamily owners.
• Section 1031 like‑kind exchanges remain unchanged, preserving capital gains deferral strategies.

• What Brokers and Investors Need to Know
• The One Big Beautiful Bill and Its Impact on Real Estate Owners and Investors
• President Trump Signs Big Beautiful Bill — Here’s What It Means For Mortgage And Housing