What the New Tax Bill Means for Homeowners, Buyers, and Investors

by Karin Morabito

How a New Tax Bill Could Impact Your Next Real Estate Move (and Why I’m Watching It Closely for You)
By Karin Morabito | Rochester, NY Realtor | #ExperienceTheExtra

Earlier this week, the U.S. House passed a sweeping new tax bill - cue the confetti toss! 🎉 While it’s not a done deal yet (the Senate still has its say), it’s already creating buzz for homeowners, small business owners, and real estate investors across the country—including right here in our beautiful Rochester, NY community.

Now, I’m not a tax advisor (you’ve got pros for that), but as your go-to real estate expert and glam guide through all things home, I am here to help you make confident, well-informed decisions. So let’s break down the key highlights of this bill—and what it could mean for your next move.

✨ Quick Highlights from the House-Passed Bill

(Source: National Association of REALTORS®)

These proposals aren’t final yet—but here's what’s currently on the table:

Small Business Deduction bump: From 20% to 23% for LLCs and independent contractors (hello, real estate agents!).
SALT deduction cap raised: Up to $40,000 for households earning under $500K. That’s major for high-tax areas.
Mortgage Interest Deduction stays safe: Homeowners, you’re still in the winner’s circle.
1031 Exchanges remain untouched: Investors, your favorite tax strategy is still in play.
Estate Tax Exemption: Set at $15M and adjusted for inflation—important for generational wealth and property planning.
Child Tax Credit boost: Increased to $2,500 through 2028. Families, that’s a meaningful lift.
Opportunity Zones extended: Capital continues flowing into underserved neighborhoods. Smart growth, anyone?
New Child Investment Accounts proposed: Could eventually help future buyers save for that first home. Stay tuned!

💖 What It Could Mean for You

Sellers: Get Ready for Steady

With financial confidence rising and key deductions staying put, we could see buyers entering the market with less hesitation. That means stronger offers, better timelines, and more predictability—music to any seller’s ears.

Buyers: Breathing Room & Bigger Possibilities

An expanded SALT deduction, no increase in income tax brackets, and that child tax credit boost? Together, they just might help more buyers feel ready to say “yes to the address.” It’s not a magic wand—but it’s definitely a more hopeful outlook.

Investors: Full Steam Ahead

The unchanged 1031 exchanges and ongoing Opportunity Zone perks signal continued support for long-term investment strategies. Translation? Rochester’s emerging neighborhoods might just be your next big win.

🌸 So… What’s Next?

This bill still has to pass the Senate, and yes, details may shift. But the overall vibe? It’s all about supporting homeowners, families, small businesses, and the building blocks of lasting financial growth. And as your favorite pink-loving, confetti-throwing Realtor, I’m keeping a close eye on it all for you.

Thinking about selling, buying, or investing? Let’s connect and chat it through—no pressure, just possibilities.

Because whether it’s tax policy or timing your next move, you deserve a partner who makes the process feel fabulous.

Sources:
• National Association of REALTORS®
• NAR National Survey, April 2025
• U.S. House summary of “One Big Beautiful Bill Act,” May 2025