07/16/2025
With the recent changes in so called BIG BEAUTIFULL BILL, please read and consult with your CPA to insure your taxes is within the guidelines of this Ugly bill..
Recently, President Trump signed H.R. 1, nicknamed the Big Beautiful Bill, into law. Here are some provisions of the bill that may affect you, whether you're a homeowner, would-be buyer or real estate investor.
If you own a home and are within income limits, you can permanently deduct your mortgage insurance premiums from your federal taxes. This deduction isn't available for incomes above $175,000 for single tax filers, and joint filers making over $250,000. H.R. 1 also put a permanent $750,000 cap on mortgage interest deductions.
H.R. 1 raised the state and local tax (SALT) deduction cap to $40,000 per household from 2025-2029, with a phase-down starting for incomes over $500,000. This could make home ownership more attractive for you if you're in the appropriate income bracket.
If you own investment properties and qualify for the 20% deduction for Qualified Business Income, good news...this has been made permanent.
No new federal down payment or homebuyer assistance/grants were included. This means that if you're looking for down payment assistance, you can still consider state housing financing agencies, local grants, and employer-assisted programs.