Senate Passes Tax Bill That Supports Homeownership
A new tax bill just passed in the U.S. Senate, and it’s packed with changes that are good news for people who own homes—or hope to someday. The National Association of REALTORS® (NAR) worked closely with Congress to make sure the bill included support for homeowners, renters, and anyone involved in real estate. Their efforts paid off.
One of the biggest wins is that lower income tax rates are staying in place for good. That means more take-home pay for many people. The mortgage interest deduction—which helps homeowners save money at tax time—will also be permanent.
If you’re self-employed, a small business owner, or an independent contractor, the 20% business income deduction is sticking around too. That’s a big deal for people like real estate agents, contractors, and gig workers.
Starting in 2025, the cap on how much you can deduct for state and local taxes (called SALT) will go way up for five years, making it easier for some folks to save more on their taxes.
The bill also protects a popular tool for real estate investors called a “1031 exchange,” which lets them swap properties without paying taxes right away. This helps keep housing investment strong, especially when inventory is tight.
In plain terms, the new law supports people at all stages—first-time buyers, families, investors, and long-time homeowners. I believe it’s a step in the right direction for keeping home ownership within reach.
Some other wins? There’s more support for building affordable housing, the child tax credit is going up to $2,200, and the estate tax limit is staying high to help families pass down property.
There’s even a new “baby bond” idea—each child born after this bill is signed would get $1,000 set aside for the future, which could go toward buying a home someday.
Bottom line: This bill helps make housing more affordable and keeps important tax breaks in place. It’s a welcome shift at a time when many families are feeling stretched.
Source Inspiration: nar.realtor