Two Powerful Tax Changes Every Realtor Should Know About (And How They Can Help You Close More Deals): Big Beautiful Bill
- Kiersten Sedlmayr Landers
- Jul 17
- 3 min read
If you're a real estate professional who wants to stay ahead of the curve and offer smarter, more strategic advice to your clients, you need to know what just passed in the recently signed Big Beautiful Bill. While media coverage has mostly focused on broad economic or political implications, there are two key tax changes tucked inside that can have an immediate and measurable impact on your closings—whether you’re working with seasoned investors or first-time buyers.
Understanding these updates can give you a serious edge, help you build stronger value in your client conversations, and even revive leads that previously stalled due to affordability or cash flow concerns.
Let’s break it down.
1. Real Estate Investors Can Now Fully Deduct Property Improvements in Year One
In one of the most investor-friendly updates we’ve seen in recent years, real estate investors can now deduct 100 percent of qualifying property improvement costs in the year the expense is incurred. Previously, those costs had to be amortized over time, limiting how quickly investors could see the benefits of their upgrades on their bottom line.
Why this matters to you as a realtor:
Improved investor cash flow means more confidence and more aggressive buying behavior.
Reduced taxable income encourages faster reinvestment, increasing repeat business.
It also makes value-add projects—like fixer-uppers and multi-family units—more financially viable, which can expand your scope of listings and buyer options.
If you have investor clients on the fence about expanding their portfolio, this change creates a new window of opportunity. As their trusted real estate professional, you can help them view this tax shift as a strategic incentive to take action.
2. PMI Is Now Permanently Tax Deductible
For years, private mortgage insurance (PMI) has been viewed as an unavoidable but unfortunate cost of putting less than 20 percent down on a home. But under this new legislation, PMI is now permanently tax deductible—a change that has major implications for affordability, especially for first-time homebuyers or those with moderate down payments.
Why this matters to your buyers:
PMI is no longer a sunk cost—it now represents potential future tax savings.
This shifts the perception of affordability and reduces psychological barriers for buyers hesitant to move forward with less than 20 percent down.
It may result in better debt-to-income ratios and more flexible loan structuring options.
For you, this opens up a new angle in your buyer consultations. Instead of trying to "sell past" PMI concerns, you can now lean into the conversation with a value-driven response that positions PMI as part of a smart, strategic path to homeownership.
What This Means for You as a Realtor
These two changes—investor deductions for improvements and permanent PMI deductibility—are more than just tax code adjustments. They’re real-world tools you can use to:
Revive leads that went cold due to financial concerns
Add value to your buyer and investor consultations
Set yourself apart as a knowledgeable market resource
Drive stronger lender-realtor collaboration through strategic financing conversations
By aligning yourself with lending partners who understand how to structure deals around these updates, you’re not just helping your clients get into homes—you’re helping them make smarter long-term financial decisions.
Ready to Talk Strategy?
Whether you’re in Idaho Falls, Scottsdale, or somewhere in between, I can help you understand how these tax updates fit into your market, your pipeline, and your next deal. Let’s talk through your current buyers and investors to see how we can make this work for them—and for you.
Contact Kiersten Landers Mortgage Loan Advisor | Landers Lending Group with Empire Home Loans NMLS# 18329243 Licensed in Idaho and Arizona | NMLS# 2491643 208 270 3861
Kiersten Sedlmayr
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