How the OBBBA Shifts Real Estate Investment Strategy
The One Big Beautiful Bill Act (OBBBA) is more than just a tax code update — it’s a blueprint that changes how real estate investors and developers plan, finance, and structure deals. While headlines have focused on the politics, the real impact lies in the practical shifts for real estate.
Permanent Tax Tools = Long-Term Planning
One of the most significant features of the OBBBA is the permanency it brings to certain tax provisions.
- 20% pass-through deduction: Once at risk of expiring, it’s now permanent. For investors in partnerships, S Corporations, and REITs, this means predictable after-tax cash flow that can be built into long-term projections.
- 100% bonus depreciation: Permanently available for qualified improvement property and short-life assets. This strengthens returns on renovations, tenant build-outs, and repositioning projects by allowing immediate expensing instead of years-long depreciation.
Strategic Implications for Real Estate
For operators, permanence reduces uncertainty. Developers can now underwrite deals with greater confidence.
- Partnerships can structure agreements knowing tax advantages remain intact.
- Condo developers benefit from completed contract accounting, aligning them with single-family and townhome projects.
- Financing packages become stronger, bids more competitive, and capital deployment into real estate more attractive overall.
How We Can Help
At Shahbaz & Associates, we help real estate investors and business owners translate complex legislation into actionable strategies. Whether it’s modeling bonus depreciation, restructuring pass-through entities, or evaluating how these changes affect your pipeline, our team can guide you every step of the way.
Ready to review how the OBBBA impacts your portfolio?
Schedule a consultation with our team today and position your investments to take full advantage of these permanent tax tools.