Tax Reform Update: Real Estate Pros and Homeowners Score Big

Tax Reform Update: What You Need to Know (And Why It Matters to Real Estate)

Here’s the scoop, R Squared Realty Experts-style:

The National Association of REALTORS® (NAR) just secured a major win in the opening stretch of what’s shaping up to be a long marathon toward meaningful tax reform. Their advocacy team released a breakdown of the proposed bill—crafted by House Republicans—that includes several big-ticket wins for real estate professionals, homeowners, and small business owners alike.

First Draft of Tax Reform Bill

According to Shannon McGahn, NAR’s Chief Advocacy Officer, this draft is a “strong opening bid for our advocacy priorities.” Translation? It protects and enhances key provisions we’ve been fighting for, including:

✔️ Keeping small business thriving with an enhanced tax deduction
✔️ Strengthening the SALT deduction (a big one for homeowners)
✔️ Preserving the mortgage interest deduction
✔️ Leaving 1031 exchanges and business SALT deductions untouched (yes, you read that right)

The bill also aims to make the current lower tax brackets permanent and boost the child tax credit, both of which could help more families achieve homeownership. Bonus: It revives Opportunity Zones and reinforces support for affordable housing through the low-income housing tax credit.

NAR is still combing through the finer print, but so far, the outlook is promising for real estate and the broader economy.

As McGahn put it: “This is just the first draft—we’re not popping champagne yet. But rest assured, we’re staying at the table to make sure real estate remains a priority.”

At R Squared Realty Experts, we’ll be tracking this closely and translating all the policy jargon into plain speak—so you stay informed and empowered in every move you make.

More to come.