The New Tax Bill: What Homeowners and Investors Need to Know
- Elisa Cool Murphy
- May 22
- 3 min read
Updated: Jul 22
Earlier this week, the U.S. House of Representatives passed a sweeping tax bill. If it makes it through the Senate, this bill could bring meaningful changes. These changes will impact homeowners, small business owners, and real estate investors.
Now, I’m not a tax professional. Nothing here should be taken as financial advice. However, I work in the business of helping people make smart, well-timed real estate moves. When something like this hits the floor, it’s worth paying attention to.
The Quick Version: What’s in the House Bill
(Source: National Association of REALTORS®)
Here’s a summary of what could be included in the bill, which still has to pass the Senate:
Small Business Deduction: This increases from 20% to 23%. This is a win for independent contractors and LLCs, which includes most real estate agents.
SALT Deduction Cap: The cap is raised to $40,000 for households earning under $500K. This change is particularly helpful in high-tax areas like New Orleans.
Mortgage Interest Deduction: This essential homeowner benefit remains intact.
1031 Exchanges: These remain unchanged. This means real estate investors can still use this vital planning tool.
Estate Tax Exemption: Set at $15 million and inflation-adjusted, this supports families passing property between generations.
Child Tax Credit: This increases to $2,500 through 2028. It’s a useful lift for families looking to buy homes.
Opportunity Zones: These are renewed and revised to keep capital flowing into underserved and transitional areas.
Proposed New Child Investment Accounts: These accounts could help fund first-time home purchases in the future. We’re keeping an eye on this for more details.
What This Could Mean in Real Life
Sellers: More Stability Ahead
For sellers, this tax bill could bring more stability. Buyers who feel more confident about their finances are more likely to act. Keeping mortgage deductions and tax rates steady may mean sellers benefit from a stronger pool of ready buyers. It could also lead to more predictable timelines. In a market like ours, timing and confidence are crucial.
Buyers: Lower Pressure, More Possibility
For buyers, the combination of a higher child tax credit, an expanded SALT deduction, and no increase in income tax brackets could lower some pressure. While none of these changes is a silver bullet, together they suggest a more buyer-friendly environment than we have seen in some time.
Investors: No Surprises, Just Support
For real estate investors, no changes to 1031 exchanges or carried interest mean that the usual investor playbook still applies. Additionally, having Opportunity Zones in the mix gives investors ongoing reasons to explore emerging areas for long-term growth.
Key Takeaways: What to Do Next
This bill hasn’t become law yet. It still has to pass the Senate, and some aspects may change. However, the overall direction is clear. This bill straddles a line focused on protecting homeowners, supporting small businesses, and preserving vital tools for long-term wealth-building.
Start Planning Your Next Move
If you're considering a move or an investment, this is a good time to start the conversation. You don’t need to make a decision immediately. What you do need is a partner who’s paying attention and helping you read these signs clearly.
If you would like to discuss how these potential changes might affect you, let’s talk it through.
Sources:
National Association of REALTORS®
NAR National Survey, Public Opinion Strategies & Hart Research, April 2025
House summary of the “One Big Beautiful Bill Act,” May 2025
Voted Neighborhood Favorite by Nextdoor the last three years, Cool Murphy is a top-producing, licensed real estate team based in New Orleans, brokered by Cool Murphy, LLC.
Celebrated for her next-level creative approach to real estate, Elisa Cool Murphy is an award-winning, top-performing real estate broker in New Orleans and the founder of Cool Murphy Real Estate.
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