- There will be pressure on the Fed to reduce rates. The NAR chief economist is predicting as many as 6-8 small reductions, as well as predicting a “spike” in apartments rents for the Memphis area.
- Republican administrations typically favor the wealthy, business, and real estate owners.
- The reinstatement of bonus depreciation for assets at 100% of cost as opposed to the 60% that is for 2024, 40% for 2025.
- Residential tax deductions: the $10,000 cap will be lifted.
- The low tax rates that were set to expire in 2025, will be made permanent.
- 20% qualified business income deduction will continue.
- The expectation is that capital gains rates will be lowered from 20% (for higher income taxpayers) to a flat 15% rate.
- The stock market and cryptocurrency has jumped, and investors that have gotten out of real estate over the last few years may take their profits and get back in before it goes up again.
- Estate tax exemption will remain at $13M per person.
- Corporate taxes may be reduced to 15%.
- To lower capital gains rates from 20% (for higher income taxpayers) to a 15% flat rate.
- RE prices have not gone up yet! So, there is time to get in now…
— Steve Woodyard
