What the New Tax Bill Means for Homeowners, Buyers, and Investors
- Elisa Cool Murphy
- May 22
- 3 min read
And why we’re watching it closely
Earlier this week, the U.S. House of Representatives passed a sweeping tax bill that, if it makes it through the Senate, could bring meaningful changes for homeowners, small business owners, and real estate investors.
Now, I’m not a tax professional, and nothing here should be taken as financial advice. But I work in the business of helping people make smart, well-timed real estate moves, and 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®)
This is based on the version that passed the House. The Senate still has to weigh in, so it's not final, but here's what’s in play:
Small Business Deduction increases from 20% to 23%. A win for independent contractors and LLCs (that’s most agents).
SALT deduction cap raised to $40,000 for households earning under $500K. That’s especially helpful in high-tax areas like New Orleans.
Mortgage Interest Deduction stays intact. A foundational homeowner benefit remains untouched.
1031 exchanges remain unchanged. This keeps a vital planning tool available to real estate investors.
Estate tax exemption set at $15 million and inflation-adjusted. Supports families passing property between generations.
Child tax credit increases to $2,500 through 2028. A helpful lift for families looking to buy.
Opportunity Zones renewed. Revised to keep capital flowing into underserved and transitional areas.
Proposed new Child Investment Accounts. These could one day help fund first-time home purchases. We’re watching for more details.
What This Could Mean in Real Life
Sellers: More Stability Ahead
Buyers who feel more confident about their finances are more likely to act. With mortgage deductions and tax rates holding steady, sellers may benefit from a stronger pool of ready buyers and more predictable timelines. That’s especially valuable in a market like ours, where timing and confidence matter more than hype.
Buyers: Lower Pressure, More Possibility
The combination of a higher child tax credit, an expanded SALT deduction, and no increase in income tax brackets could ease some of the pressure on buyers. None of it’s a silver bullet, but together, these changes suggest a more buyer-friendly environment than we've seen in a while.
Investors: No Surprises, Just Support
No change to 1031 exchanges or carried interest means the usual investor playbook still applies. And with Opportunity Zones staying in the mix, there’s still reason to explore emerging areas for long-term growth.
So, What Now?
This bill isn’t the law yet. It still has to pass the Senate, and some parts may change. But the general direction seems clear. It’s a bill focused on protecting homeowners, supporting small businesses, and preserving key tools for long-term wealth-building.
If you're weighing a move or investment, now’s a good time to start the conversation. You don’t need to make a decision yet. You just need a partner who’s watching the signs and helping you read them clearly.
Let’s talk it through.
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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.
Contact Her -
email: cool@coolmurphy.com
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phone: 504-321-3194
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