How Trump’s “One Big Beautiful Bill” Will Change How You Buy and Sell Homes in Florida
On July 4, 2025, a major federal tax reform bill—nicknamed the “One Big Beautiful Bill”—was signed into law by President Donald Trump. While the bill covers many parts of the U.S. tax code, it includes several important updates for anyone who owns, buys, or sells real estate in Florida, especially in Pinellas County, St. Pete, and the Tampa Bay area.
This article breaks down the key changes in simple terms—and what they could mean for your next real estate move.
🏡 1. Mortgage Insurance Is Tax-Deductible Again
If you buy a home with less than 20% down, you likely pay for mortgage insurance. This new law brings back the federal tax deduction for mortgage insurance premiums, which was previously phased out.
Why it matters:
Buyers using FHA loans or low-down-payment conventional loans could save hundreds to thousands on their taxes, making homeownership more affordable in areas like St. Pete Beach and Gulfport, where entry-level homes are in high demand.
📈 2. Higher Standard Deduction = Lower Taxes for Many
The bill raises the standard deduction to:
$15,750 (single filers)
$23,625 (head of household)
$31,500 (married couples)
What this means:
Fewer people may itemize mortgage interest or property taxes, but most will pay less overall in federal income taxes. This may help more Floridians afford homes in Pinellas County, where rising prices and insurance costs have stretched budgets.
🏘️ 3. More Affordable Housing on the Way
The bill expands the Low-Income Housing Tax Credit, giving developers more incentives to build affordable rental housing. Florida is projected to see tens of thousands of new units over the next decade.
Why it matters for locals:
In high-cost areas like St. Petersburg and Clearwater, increased rental inventory could help alleviate housing shortages, particularly for service workers, seniors, and low- to middle-income families.
🏢 4. Big Tax Benefits for Real Estate Investors
Several permanent changes favor real estate investors in Florida:
The 20% Qualified Business Income (QBI) deduction for rental income and real estate professionals is now permanent
100% bonus depreciation is restored for improvements to investment property
Opportunity Zones (including eligible areas in Pinellas County) are now a permanent part of the tax code
1031 exchanges remain untouched—investors can still defer taxes when trading one property for another
Why it matters:
These provisions could make rental property ownership, vacation rentals, and 1031 exchanges even more attractive in areas such as Pass-a-Grille, Treasure Island, and St. Petersburg’s historic neighborhoods.
💼 5. SALT Deduction Increased (Temporarily)
The cap on state and local tax (SALT) deductions has increased from $10,000 to $40,000 through 2029.
Who benefits:
This primarily benefits higher-income households with substantial property tax bills. If you own multiple properties or higher-end homes in Pinellas County, you could see larger federal tax savings during this period.
🔍 What Didn’t Change? (But Could Have)
Some widely discussed proposals were not included in the final bill, including:
No changes to mortgage interest deduction
No limits or repeal of 1031 exchanges
No new capital gains taxes on carried interest (common in real estate partnerships)
No changes to estate tax thresholds (which remain at $15 million per person)
These omissions mean fewer surprises for long-term property owners, investors, and developers in Florida.
✅ Bottom Line for Florida Homeowners and Investors
The “One Big Beautiful Bill” brings mostly positive tax changes for people involved in Florida real estate. Whether you're:
Buying your first home
Selling your property in St. Pete Beach
Investing in a rental or Airbnb in Tampa Bay
Or developing real estate in Opportunity Zones
There are now more ways to reduce your tax burden and build long-term wealth through property.
💬 Have Questions About How This Affects You?
I help homeowners and investors throughout Pinellas County and the greater Tampa Bay area navigate the real estate market—and understand how policy changes affect their bottom line. Let’s talk about how to make the most of these new tax benefits for your next move.
