You may have heard the buzz about the “Big Beautiful Bill” just passed by Congress, and yes, it really is a big deal for real estate. Whether you're a homeowner, investor, or business owner, this bill includes powerful tax breaks designed to make buying, improving, or owning property more affordable and strategic than it’s been in years.
Here’s a quick breakdown of what changed, what’s back, and why now might be the smartest time to make your move. There's more savings, more affordability, and more buying power—especially for North County families.
Big Beautiful Bill – Real Estate Highlights
📉 Mortgage Interest Deduction Made Permanent (HUGE)
Encourages homeownership by locking in this key write-off for buyers & homeowners
🧾 SALT Deduction Cap Raised (especially relevant here)
New cap up to $40,000, a major win for Californians and other high-tax states. *There is a phase-out for higher-income taxpayers.
👶 Increased Child Tax Credit
Now over $2,000 per child—more help for families buying homes
🔁 1031 Exchanges Protected (losing this would have crushed the investment market)
Keep deferring capital gains tax when swapping investment properties
🏠 100% Bonus Depreciation Restored
Write off the full cost of improvements (e.g., appliances, HVAC, flooring, roof) in the year they're made
Applies to rentals, investment properties, and renovations through 2026
💻 Section 179 Expensing Increased
Deduct up to $1.29 million in business-related expenses (vehicles, computers, office furniture, etc.)
🧪 R&D Expenses Now Fully Deductible
Especially helpful for developers using energy-efficient or innovative construction methods
⚡ Energy-Efficient Commercial Upgrades (179D) Expanded
Bigger deductions for HVAC, insulation, roofing, and lighting in commercial and multifamily buildings
🏘 Low-Income Housing Credits Expanded
More incentives for developers to build affordable housing
🏦 Section 199A (QBI Deduction) Extended
Business owners, including independent contractors, can keep deducting up to 20% of income
San Diego County rents are climbing again—up 4.1% year-over-year, with city rents spiking over 9%. Meanwhile, vacancy rates are dropping fast. Translation: demand is still strong. For investors, now’s the time to lean in.
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Final Thought: Why This Matters in North County San Diego
Let’s drop the politics for a second—this bill is a huge deal for people buying or owning homes in North County San Diego. Between the expanded SALT deduction and the preserved mortgage interest deduction, you could be saving thousands per year in tax write-offs.
📊 Example: Buying a $1.3M home in Carlsbad
- Property taxes: ~1.1% = $14,300/year
- Mortgage: $1M loan at 6.25% interest = ~$62,500 in interest first year
- Interest deduction capped at $750,000 loan amount → approx. $46,875 deductible
- SALT cap raised to $40,000 (previously $10K), so you can deduct the full $14,300 in property taxes
Total deductions: $46,875 (interest) + $14,300 (property tax) = $61,175
That’s over $60,000 in deductions you might not have qualified for before this bill.
This isn’t political, it’s practical. If you’re making a move in a high-cost area like North County San Diego, the Big Beautiful Bill could save you real money.
