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Are the Trump-Era Tax Cuts for Real Estate Investors Permanent? A Deep Dive Post-“Big Beautiful Bill”

PITTSBURGH, PA – JULY 11, 2025: For years, real estate investors have leveraged strategic tax advantages to maximize their returns and build substantial wealth.¹ The Tax Cuts and Jobs Act (TCJA) of 2017, signed into law by then-President Trump, introduced a suite of provisions that significantly impacted the real estate sector.² A burning question for many remains: Are the Trump-era tax cuts for real estate investors permanent?

Trump-Era Tax Cuts for Real Estate:

The answer, definitively, is a resounding YES, thanks to President Donald Trump’s new “Big Beautiful Bill,” officially known as the One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025.³ This landmark legislation not only makes many of the most impactful TCJA provisions for real estate investors permanent but also enhances several key benefits. This authoritative guide will break down what these changes mean for your investments, especially in a dynamic market like Pennsylvania, and how GHC Funding can help you capitalize on this new era of tax certainty.

The Permanence and Enhancement of Key Tax Benefits

The OBBBA is a game-changer, ensuring that the most advantageous provisions for real estate investors are no longer subject to expiration dates. Here’s a closer look:

• Qualified Business Income (QBI) Deduction (Section 199A): Now Permanent.
  • Initially set to expire at the end of 2025, the 20% QBI deduction for pass-through entities (including LLCs, S-corporations, and sole proprietorships common among real estate investors) is now permanent. This means a significant portion of your rental income, if structured correctly, will continue to be tax-free at the federal level, providing ongoing substantial savings. The OBBBA also keeps the deduction rate at 20% and increases the phase-in range for certain businesses.
• 100% Bonus Depreciation: Restored and Made Permanent.
  • The TCJA introduced 100% bonus depreciation, allowing businesses to immediately expense the full cost of qualified property (often including certain commercial property components) in the year it’s placed in service.⁴ This began phasing out in 2023. The OBBBA restores 100% bonus depreciation for qualified property placed in service after January 19, 2025, and crucial for investors, makes this restoration permanent without any scheduled future reductions.⁵ This is a huge win for those undertaking significant improvements or acquiring new equipment for their properties, making cost segregation studies more valuable than ever.
• Section 179 Expensing: Increased Cap and Enhanced.
  • Section 179 allows businesses to deduct the full purchase price of qualifying equipment and software up to a certain limit.⁶ The OBBBA increases the Section 179 expensing cap from $1.25 million to $2.5 million, with phase-outs beginning at $4 million for property placed in service after December 31, 2024.⁷ This allows for even greater immediate deductions on eligible property improvements and equipment for your real estate ventures.
• Business Interest Limitation (Section 163(j)): More Favorable Treatment.
  • The TCJA modified the business interest deduction, making it less favorable for some businesses.⁸ The OBBBA reverses restrictive changes by reinstating a more favorable add-back treatment for depreciation.⁹ This permanent modification ensures real estate investors are not penalized for claiming higher depreciation while servicing debt used to finance operations, effective for taxable years beginning after December 31, 2024.
• 1031 Like-Kind Exchanges: Confirmed Stability.
  • While the TCJA limited 1031 exchanges to only real property, there were always underlying concerns about their long-term stability. The OBBBA explicitly keeps 1031 exchanges alive and well, reaffirming their role as a critical tool for deferring capital gains taxes when reinvesting in like-kind real estate. This provides much-needed certainty for investors planning their long-term wealth strategies.
• Qualified Opportunity Zone (QOZ) Program: Expanded and Permanent.
  • The OBBBA effectively creates a new and expanded QOZ program alongside the original, offering permanent status and more generous basis step-up provisions, especially for rural investments.¹⁰ The ability to designate new zones every decade ensures this program will continue to drive investment into economically distressed communities, offering significant capital gains deferral and elimination benefits.

In essence, the “Big Beautiful Bill” provides a robust, permanent framework of tax advantages that empower real estate investors to build wealth more efficiently.

Financing Your Permanently Tax-Advantaged Investments

To fully leverage these enduring tax benefits, you need a lending partner who understands the intricacies of real estate finance and how to structure deals that maximize your tax advantages. GHC Funding is that partner. We offer a comprehensive suite of loan products designed to meet the diverse needs of real estate investors looking to capitalize on these permanent tax cuts.

Our expertise ensures you can acquire the right properties, undertake beneficial improvements, and position yourself to take full advantage of QBI deductions, bonus depreciation, Section 179 expensing, and strategic 1031 exchanges.

Current Market Insights: Rates and Requirements (July 11, 2025)

As of today, July 11, 2025, real estate investors need to be aware of the current financing landscape to make informed decisions.

DSCR Loan Rates:

• Rates: Typically range from 6.5% to 8.0%.
• Factors Influencing Rates: Debt Service Coverage Ratio (DSCR), Loan-to-Value (LTV), property type (single-family, multi-family, short-term rental), and borrower’s credit history (though personal income isn’t verified). Higher DSCRs (e.g., 1.25x or greater) and lower LTVs generally yield better rates.
• Requirements:
  • No Personal Income Check: Qualification is based on the subject property’s projected rental income covering its debt service.
  • Minimum DSCR: Usually 1.20x to 1.25x.
  • Down Payment: Typically 20-30% of the purchase price.
  • Entity Requirement: Often requires the borrower to be an LLC or other business entity.
  • Property Types: Ideal for income-producing residential investment properties.

SBA 7a Loan Rates:

• Fixed Rates (over $250,000): Approximately 12.50% – 15.50%.
• Variable Rates (over $350,000): Approximately 10.50% – 14.00%.
• Relevant for owner-occupied commercial properties where you might acquire qualifying assets for Section 179 or bonus depreciation.
• Requirements:
  • Owner-Occupied: Business must occupy at least 51% of existing property.
  • For-Profit Business: Must meet SBA size standards.
  • Personal Guarantee: Required from owners with 20% or more stake.

SBA 504 Loan Rates:

• 25-Year Fixed Debentures: Around 6.37%.
• 20-Year Fixed Debentures: Around 6.39%.
• Excellent for significant fixed asset purchases, like larger commercial real estate acquisitions, which may contain many components eligible for bonus depreciation.
• Requirements:
  • For-Profit Business: Meet SBA net worth and income limits.
  • Owner-Occupied: At least 51% for existing buildings.
  • Job Creation/Public Policy: Must meet specific job creation or public policy goals.

Bridge Loan Rates:

• Rates typically range from 9.00% to 12.00% or more.
• Ideal for quick acquisitions or properties needing immediate improvements to capitalize on bonus depreciation or Section 179 before securing long-term financing.
• Requirements:
  • Clear Exit Strategy: A defined plan for repayment (e.g., permanent refinancing).
  • Equity: Often requires significant equity in the property.
  • Speed: Designed for fast closings.

GHC Funding: Your Strategic Partner in a Permanent Tax Advantage Era

With the permanence of these critical Trump-era tax cuts, the opportunity for real estate investors is unprecedented. GHC Funding is your ideal partner to capitalize on this favorable tax landscape, especially within the diverse markets of Pennsylvania.

Why GHC Funding for Your Pennsylvania Investments?

• Flexible Underwriting: We understand that every real estate investment strategy is unique. Our flexible underwriting process means we can evaluate your project’s full potential, including how it benefits from the permanent tax cuts, allowing us to fund deals that traditional banks might find too complex.
• Market Expertise: Our team possesses deep knowledge of the Pennsylvania real estate market, from the robust urban centers of Philadelphia and Pittsburgh to the growing suburban and rural areas. We understand local dynamics, property values, and the specific opportunities that align with these powerful tax incentives.
• Streamlined Process: Time is money, especially when making investment decisions influenced by tax planning. Our efficient loan application and approval process ensures quick closings, allowing you to seize opportunities and put properties into service promptly to claim those immediate deductions.
• Tailored Financing Solutions: Whether you’re acquiring a multi-family property for cash flow and QBI deductions, a commercial building for bonus depreciation on significant improvements, or need a bridge loan to quickly close on an opportunity zone investment, GHC Funding has the diverse product suite to meet your needs. We are your one-stop shop for DSCR Loans, SBA 7a loans, SBA 504 Loans, Bridge Loans, and other Alternative Real Estate Financing.

Pennsylvania’s Investment Potential

Pennsylvania’s diverse economy, strategic location, and growing real estate markets make it an attractive state for investors looking to benefit from the now-permanent Trump-era tax cuts.

• Philadelphia Metro Area (Philadelphia County): A sprawling urban core with strong rental demand, historic charm, and ongoing revitalization.
  • Prominent Zip Codes: 19107 (Center City East) for high-density residential and commercial, 19125 (Fishtown) for rapidly appreciating residential and mixed-use, 19143 (University City) for student housing and medical offices.¹¹
  • Key Neighborhoods: Center City (commercial, luxury rentals), Fishtown/Northern Liberties (trendy, strong rental growth), University City (student housing, medical offices), Germantown/Mt. Airy (historic, community-focused rentals).
  • Investment Scenarios: Acquire a multi-unit property in West Philadelphia (19104), near universities, to leverage QBI deductions on rental income. Or, invest in a commercial building in Kensington (19134) for a value-add project, maximizing bonus depreciation on interior improvements.
• Pittsburgh Metro Area (Allegheny County): A revitalized industrial hub transforming into a tech and healthcare powerhouse, offering affordable entry points.
  • Prominent Zip Codes: 15219 (Downtown Pittsburgh) for commercial and urban residential, 15206 (East Liberty) for revitalized residential and retail, 15213 (Oakland) for student housing and medical facilities.
  • Key Neighborhoods: Downtown (commercial, residential conversions), Strip District (mixed-use, entertainment), Lawrenceville (trendy, strong rental demand), Oakland (university-driven housing).
  • Investment Scenarios: Purchase a multi-family property in South Side Slopes (15203), ideal for leveraging DSCR loans based on consistent rental income and benefiting from QBI deductions. Consider acquiring light industrial space in Allegheny Valley (15024) for equipment upgrades qualifying for Section 179.
• Harrisburg Area (Dauphin County): The state capital, offering stable government employment and a growing regional economy.¹²
  • Prominent Zip Codes: 17101 (Downtown Harrisburg) for government and urban residential, 17111 (Susquehanna Township) for suburban residential investments.
  • Investment Scenarios: Focus on single-family rentals or small multi-family units in Harrisburg’s uptown neighborhoods (17110), benefiting from consistent rental demand and the QBI deduction.
• Lancaster County: A rapidly growing area known for its agricultural heritage, tourism, and expanding industrial sector.¹³
  • Investment Scenarios: Target industrial properties in Lancaster (17601) for manufacturing or warehousing, where new machinery and infrastructure can qualify for significant bonus depreciation. Or, invest in short-term rental properties in Strasburg (17579) near tourist attractions, leveraging DSCR loans.
• Erie (Erie County): A port city on Lake Erie with a focus on manufacturing and healthcare, offering affordable investment opportunities.
  • Investment Scenarios: Consider acquiring multi-family properties in Erie’s revitalized downtown core (16507) or value-add commercial buildings where renovations can trigger substantial Section 179 deductions.

Certainty and Capital for Your Permanent Tax Advantages

The unique selling proposition of GHC Funding in this new era of permanent Trump-era tax cuts is our unwavering commitment to providing stable, flexible, and investor-centric financing that directly empowers you to capitalize on these enduring tax benefits.

How GHC Funding Stands Apart:

• Proactive Planning: We don’t just provide loans; we partner with you to understand your investment and tax strategy. This means recommending the right loan product to maximize QBI deductions on your rental income, leverage 100% bonus depreciation on new acquisitions, or utilize Section 179 for property improvements, ensuring your financing aligns with your tax goals.
• Adaptability to the New Norm: While many lenders may still be adjusting to the permanence of these tax cuts, GHC Funding is already operating under this new, favorable landscape. Our processes and product offerings are built to help you take full advantage of this long-term certainty.
• Capital Preservation: By enabling you to efficiently claim significant deductions upfront, our financing solutions effectively help you preserve capital, which can then be reinvested into more properties, accelerating your portfolio growth.

Trump-Era Tax Cuts Q&A Section

Q7: How does GHC Funding’s streamlined process help me capitalize on these permanent tax advantages faster?

A7: Our streamlined process means faster loan approvals and closings. This speed is critical because to claim deductions like bonus depreciation or Section 179, the property or qualifying assets must be “placed in service” within the tax year. Quick financing from GHC Funding ensures you meet these deadlines and realize your tax savings without delay.

External Resources for Pennsylvania Real Estate Investors

For further insights and local support in Pennsylvania, consider these high-quality resources:

• Pennsylvania Real Estate Commission: https://www.dos.pa.gov/ProfessionalLicensing/BoardsCommissions/RealEstateCommission/Pages/default.aspx (Official state body providing licensing, regulations, and consumer information for real estate in Pennsylvania.)
• Diversified Real Estate Investor Group (DIG) of Philadelphia: https://digonline.org/ (One of the largest and most active real estate investor associations in Pennsylvania, offering networking, education, and resources for investors in the greater Philadelphia area.)
• ACRE of Pittsburgh: https://www.acrepgh.org/ (The premier real estate investor association in Pittsburgh, providing educational programs, networking opportunities, and market insights for local investors.)
• Zillow Pennsylvania Housing Market: https://www.zillow.com/home-values/47/pa/ (Provides up-to-date housing market data, trends, and statistics for Pennsylvania and its various metros, including home values and rental trends.)
• Pennsylvania Department of Community and Economic Development (DCED) – Housing & Community Development: https://dced.pa.gov/local-government/housing-community-development/ (Offers information on various state housing initiatives, community development programs, and potential resources relevant to real estate investment, including Opportunity Zones information.)

Invest with Confidence: Your Future is Tax-Optimized

The question “Are the Trump-era tax cuts for real estate investors permanent?” has been answered with a definitive, positive affirmation by the “Big Beautiful Bill.” This provides a foundation of long-term certainty for your real estate investment strategies, allowing for more aggressive growth and efficient wealth accumulation.

To truly capitalize on this permanent tax advantage, you need a lending partner who is forward-thinking, agile, and deeply committed to your success. GHC Funding offers the financial solutions, market knowledge, and streamlined processes to help you acquire the right properties, leverage the maximum tax benefits, and build a thriving real estate portfolio in Pennsylvania and beyond.

Don’t just invest; invest strategically with the confidence of permanent tax advantages. Visit GHC Funding today at www.ghcfunding.com to explore our comprehensive suite of DSCR Loans, SBA 7a loans, SBA 504 Loans, Bridge Loans, and Alternative Real Estate Financing solutions. Let us empower your real estate investment journey.

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