As a real estate professional in North Carolina, I’m excited to share big news about the One Big Beautiful Bill Act, a tax reform package passed by the House on May 22, 2025. This bill, hailed by the National Association of REALTORS® (NAR), offers wins for our housing market. Consequently, I’m eager to explain how it impacts buyers, sellers, and investors in our state. Let’s dive in and explore these changes.
Why This Bill Matters
The One Big Beautiful Bill Act supports housing affordability and investment. As someone who helps clients daily, I see how tax policies shape dreams. Therefore, this bill’s provisions thrill me, especially for our diverse North Carolina market. Here are the key highlights:
1. Keeping the Mortgage Interest Deduction
The mortgage interest deduction stays intact. This is huge. For example, it helps buyers in Raleigh or Asheville afford homes by lowering taxable income. According to NAR, 91% of voters back this deduction. Thus, it remains a vital tool for homeownership.
2. Boosting Small Business Deductions
The bill raises the Qualified Business Income (QBI) deduction to 23%. As a result, real estate professionals like me can reinvest more in our businesses. This means better service for clients across North Carolina. Moreover, it supports local brokerages, strengthening our communities.
3. Expanding the SALT Deduction
The state and local tax (SALT) deduction cap has quadrupled. In North Carolina, where property taxes can be high, this helps homeowners, especially in Wake County. Additionally, it preserves business SALT deductions for agents. Hence, we can operate efficiently and support clients better.
4. Saving Section 1031 Exchanges
Section 1031 like-kind exchanges are safe. This lets investors defer capital gains taxes when swapping properties. For instance, it’s a win for those eyeing multi-family units in Greensboro. Consequently, it encourages investment in our markets, fueling growth.
5. Supporting Affordable Housing
The bill enhances low-income housing tax credits and adds tax-advantaged child accounts for first-time home purchases. These steps tackle our housing shortage, particularly in the Triangle. Furthermore, they help families build wealth, which aligns with my mission.
Impact on North Carolina
Our state’s real estate market varies from coastal Wilmington to mountainous Boone. However, challenges like rising prices persist. NAR reports April 2025’s median home price hit $414,000, a record high. Thus, these tax reforms are timely. For example, the SALT deduction eases costs in high-tax areas like Mecklenburg County. Similarly, QBI and Section 1031 boosts aid investors in Charlotte and Raleigh. Also, affordable housing measures help first-time buyers statewide.
My Perspective
Real estate is about people, not just numbers. I’ve seen the joy of a couple buying their first Cary home or an investor reviving a Winston-Salem property. These tax changes can make those moments happen. Yet, the bill awaits Senate approval. As NAR’s Shannon McGahn noted, it may evolve. Therefore, I’ll keep watching to guide clients effectively.
What’s Next
Stay informed with professionals who know North Carolina’s market. At Brazoban.com, we offer tailored insights. For more details, read NAR’s full article here. Also, check our market insights page for local trends.
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