Trump’s “One Big Beautiful Bill” just squeaked through the House by a hair—215 to 214. One representative voted “present,” and another fell asleep and didn’t get to lodge their vote.
Democracy in action, folks.
Next, it heads to the Senate, where the real chess match begins. Sure, they might tweak some details during reconciliation, but the core package should survive intact.
Here’s what makes this different from typical Washington theater: it’s a filibuster-proof reconciliation bill that rolls the federal budget, debt ceiling, and those coveted 2017 tax cut extensions into one massive package. Instead of the usual death-by-a-thousand-cuts approach, Congress is going all-in on a single bet.
The smart money is watching closely, too. Polymarket traders put 38% odds on passage before July, with another 22% betting on early July.
Why should you care? Why does it matter to you? And what are the raw facts and figures that bode potentially well for the multifamily sector, taking all politics and opinions out of the picture?
What’s In It For You (Personally)
We know you’re here for the deal returns. But this bill is also about keeping more money in your pocket too. We’ve crunched the numbers on what this thing does for individual investors; frankly, it’s pretty enticing. We’re talking bigger deductions, locked-in rate protections, and some genuine relief if you’re getting hammered by state taxes.
SALT Cap Relief That Moves the Needle
The state-and-local tax deduction cap gets a massive boost that will immediately hit many of your returns.
Joint filers see the cap jump from $10k to $40k. Especially if you live in California, New York, or other high-tax states, that change alone could save tens of thousands annually.
Business owners and real estate professionals get an even better deal. The legislation preserves existing SALT deductions for pass-through businesses, which means you can continue deducting state and local taxes at the entity level where allowed. So you get the higher personal cap AND keep your business advantages—double win.
Standard Deduction Increases That Compound Your Savings
Married couples get $26k in standard deductions for 2025–2028, up from $24k. That’s $2,000 of your income completely off limits to the IRS and a nice cut to your taxable income. Single filers and heads of household get similar bumps proportionally, too.
Yes, personal exemptions are still gone, but run the numbers—you come out way ahead with the higher standard deduction plus inflation adjustments on the brackets. Most of you are looking at a legitimate tax cut that compounds over time.
Permanent Rate Protection for Your Long-Term Planning
The big win? Your current tax rates just became permanent. That 37% top rate gets locked in. No going back to 39.6%. No new higher brackets either. All those scary rate increases that were supposed to hit when the 2017 cuts expired are off the table.
That removes a major uncertainty from your wealth planning. The long-term trajectory under prior law pointed toward rising rates as TCJA provisions expired. However, this legislation stops that climb cold. Your marginal rates stay put while your deductions expand—a rare combination that we believe delivers immediate and lasting value to your overall returns.
But Wait, There’s More: Real Estate Benefits
Personal tax wins are nice, but let’s talk about what really gets our blood pumping: what this bill does for our real estate game. We’re looking at bigger depreciation write-offs, protected 1031 exchanges, and deal structures that could pump more cash into your distributions.
Major Tax Deduction Wins
Here’s some genuinely good news from the bill: the proposed tax legislation throws real estate investors a major lifeline just when we need it most.
Bonus depreciation was on life support—after starting at 100%, it dropped 20% each year to just 40% this year, and was scheduled to completely disappear by 2027. That would have been brutal for anyone buying rental properties or doing major renovations. But the new bill brings back 100% bonus depreciation for qualifying assets from 2025 through 2029.
What this means in plain English: instead of spreading depreciation deductions over many years, it’s possible to write off the full cost of equipment, appliances, and certain property improvements immediately. Think HVAC systems, flooring, kitchen appliances, landscaping—stuff that normally gets depreciated over 5-15 years can now be deducted in year one.
Another catch? The bill kicks in retroactively after January 19, 2025. Properties acquired earlier this year with construction or renovations will get the full write-off. Many analysts call this development “of the highest order” for real estate investors, and they’re right.
Now, bonus depreciation works on its own—you don’t need to hire specialists or do complex cost segregation studies to benefit, though those strategies can still amplify your deductions if the numbers make sense.
The point is, this legislation hands anyone in real estate immediate tax relief without jumping through hoops.
1031 Like-Kind Exchanges
Under this bill, 1031 exchanges are also staying put, and we’ve structured our deals to work seamlessly with your tax strategy.
If you’re sitting on a property you want to sell, you can 1031 those proceeds directly into one of our RSN deals and defer those capital gains taxes. And when we exit one of our deals? We’re giving you the option to roll your profits into our next opportunity or any other qualifying 1031 exchange – keeping your money working and Uncle Sam waiting.
Look, we know what it’s like to sell a property, make a solid profit, then watch a chunk disappear to taxes. Everybody hates it. But with 1031 exchanges still protected (ALTA and the National Association of Realtors both confirmed this), you don’t have to choose between taking profits and keeping your wealth growing.
This is how we build real wealth together. Instead of stopping every few years to pay the tax man, we keep rolling profits into bigger and better deals. Your $100K becomes $150K, then $225K, then $337K – all while deferring taxes and letting compound growth do its thing.
We’ve built our entire syndication model around this strategy because we know our investors want to keep their money working, not sitting in the Treasury’s pocket. When you’re ready to make your next move, we’ll make sure the path is clear – whether that’s into our latest acquisition or your next big opportunity.
Higher Tax Saving to Investors
All these tax breaks add up to one thing – more money in your account. With 100% bonus depreciation back, plus expanded SALT and standard deductions, your taxable income drops like a rock.
Add to that the benefit to RSN investors – RSN investments will now produce even more “paper” passive losses, further reducing your taxable income.
Final Thoughts on What’s Next
Taking politics and opinions out of the equation, the “Big Beautiful Bill” could meaningfully improve our deal economics across the board if it passes as written. Think better after-tax returns across the board—higher SALT deductions, locked-in rates, extended depreciation, and keeping 1031 exchanges intact. As well as potentially stronger cash flows and IRRs versus just letting the 2017 provisions expire.
We’re watching this closely since everything is still fluid. Senate Republicans are signaling they want to make changes, particularly around Medicaid cuts and deficit reduction measures, but the tax provisions that matter most for real estate deals are likely to survive relatively intact. Either way, we’re in wait-and-see mode, scenario planning, and running numbers on upcoming deals to make sure we’re ready for whatever happens.
The bottom line is that this potential tax boost is nice, but it doesn’t change our core approach to finding solid investments in the right markets. We’ll take the tailwinds when they come, but we’re not counting on them.
Thanks for trusting us with your capital. We don’t take that lightly and are excited about what’s ahead. Your trust fuels everything we invest in, and we can’t thank you enough.
Happy Investing,
Reed, Ben & The RSN Team
Reed Goossens is an Australian-born real estate entrepreneur, investor, author, public speaker, and an all-around good bloke. Reed got his start in real estate investing back in 2012 when he moved to the US.
