The One Big Beautiful Bill: Initial Analysis of Key Provisions for the Real Estate Industry

On May 22, 2025, the House of Representatives passed H.R. 1, the budget reconciliation bill known as the One Big Beautiful Bill Act (the Tax Bill). The Tax Bill proposes amendments to the Internal Revenue Code (the Code) that could have significant consequences for both individuals and businesses. Below is a summary of the key changes under the Tax Bill that would impact the real estate industry and real estate funds.

The Tax Bill has now moved to the Senate for consideration, where further modifications to the tax provisions discussed below may be made. We will continue to provide updates as the bill advances through the legislative process in Congress.

I. Qualified Business Income Deduction (Code Section 199A)...
II. Deduction for Qualified Production Property...
III. Bonus Depreciation...
IV. Increased Limitation for Expensing Certain Depreciable Assets...
V. Excess Business Losses Limitation Extended...
VI. New Round of Qualified Opportunity Zones...
VII. Low-Income Housing Credit...
VIII. Revisions to REIT Asset Test...
IX. Increased Taxes, Including Withholding Obligations by Real Estate Funds, on Income Allocated to Foreign Investors From Certain Countries...

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RSK: Worth reading....new deductions in depreciation for production and development properties among others.

Ken Notes: Share this article with others it is very well done...