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s a certified public accountant, I've been analyzing the 'One Big Beautiful Bill' Act (OBBBA) since its passage nearly two months ago. The bill is packed with real estate investment-friendly reforms that will have a significant impact on the industry. One of the most notable benefits is the permanent restoration of 100 percent bonus depreciation, allowing businesses and individuals to quickly deduct real estate outlays from their tax bills.

    This provision will free up liquidity for further investments while providing clarity for longer-term capital investment strategies. However, there are several other "hidden gems" in the OBBBA that can help real estate investors save thousands of dollars on their tax bills. These include:

    * The extension of the 199A deduction provisions, which makes permanent the 20 percent qualified business income (QBI) deduction for pass-through entities.

    * A temporary increase in the annual state and local tax deduction cap from $10K to $40K for taxpayers earning less than $500K per year between 2025 and 2029.

    * The newly raised lifetime gift and estate exemption, which permanently increases the federal lifetime gift, estate, and generation skipping transfer (GST) tax exemptions.

    These reforms are particularly beneficial for real estate enterprises or entrepreneurs that may just be starting out. They can yield significant tax savings that can be used for re-investment or debt reduction. The OBBBA's provisions will encourage businesses and individuals to invest in real estate in high-tax states, which they may have previously written off as too expensive.

    The newly raised lifetime gift and estate exemption is particularly helpful to wealthy, sophisticated real estate investors. It offers a valuable opportunity to transfer more wealth in the form of bequeathed property and real estate without triggering federal transfer taxes. This stability gives high net worth individuals greater freedom and flexibility regarding when and to whom to bequeath real estate.

    The sweeping changes brought forth by OBBBA are set to catalyze real estate investment, jump-starting the real estate market and, at a broader level, the economy. Real estate investors can benefit extensively from careful structuring and planning to help maximize the new provisions to their fullest extent and, consequently, the tax efficiency and value of their precious assets.