Real Estate Scores Major Wins in Landmark Federal Tax Reform — Here’s What Buyers and Sellers Need to Know
By Jacqueline Salcines, Esq.
In a sweeping legislative victory for the real estate industry, Congress has passed a federal tax reform bill that includes several key provisions championed by the National Association of Realtors (NAR). These hard-fought wins are expected to provide meaningful relief and clarity for homeowners, real estate professionals, and investors — especially in high-cost markets like South Florida.
As a real estate attorney and accountant with over 26 years of experience, I’m proud to see these pro-homeownership policies included — and I’m here to help my clients and colleagues understand exactly how these changes impact them.
🏠 Key Tax Wins for Real Estate
Here are the top takeaways from the bill that directly benefit real estate buyers, sellers, and professionals:
✅ Capital Gains Exclusion for Primary Residences Remains Intact
Homeowners who have lived in their property for at least 2 of the last 5 years can continue to exclude up to $250,000 ($500,000 for married couples) of gain on the sale of a primary residence.
This is a major victory — as early versions of the bill would have extended the residency requirement to 5 of 8 years, potentially locking many sellers out of their equity.
✅ Mortgage Interest Deduction Preserved (with Cap)
Buyers can continue to deduct mortgage interest on up to $750,000 of acquisition debt. While lower than the previous $1 million cap, this still offers meaningful savings to most buyers, especially when paired with smart financing and ownership strategies — something I help my clients structure during pre-contract planning.
✅ 1031 Like-Kind Exchanges Protected (for Real Estate Only)
Real estate investors can breathe a sigh of relief. The final bill preserves Section 1031 exchanges for real property, allowing investors to defer capital gains taxes when trading up to more valuable properties.
As an attorney and title agent, I regularly assist with structuring 1031 exchanges, ensuring compliance and seamless closings.
✅ State and Local Tax (SALT) Deduction Retained — with Limits
Taxpayers may deduct up to $10,000 of combined state and local income, sales, and property taxes. While capped, this still provides relief to Florida buyers coming from high-tax states — and further underscores the tax advantage of owning property in Florida, where there’s no state income tax.
⚖️ The Bottom Line
The passage of this bill represents a huge victory for real estate — and a reminder of how powerful policy decisions can shape your home purchase, sale, or investment strategy.
🧠 How I Help
As both a real estate attorney and accountant, I offer more than just legal closing services. I advise clients on:
- Structuring ownership for tax efficiency
- Planning capital gains strategies
- Navigating 1031 exchanges
- Coordinating with CPAs and wealth advisors
📞 Need legal and financial guidance in this new tax landscape?
Contact Jacqueline Salcines, Esq. today — and let’s make your next transaction smarter, smoother, and more strategic.