How Trump’s ‘Big, Beautiful Bill’ Is A Win For Five Towns And LI Homeowners
President Donald Trump’s newly-signed legislation, dubbed the “Big Beautiful Bill,” should be stirring up excitement among real estate owners across the Five Towns and Long Island. With sweeping changes to federal tax policy, the bill promises substantial financial relief—particularly for homeowners and investors in high-tax regions like Nassau and Suffolk counties.
One of the most impactful provisions is the dramatic increase in the State and Local Tax (SALT) deduction cap. Previously limited to $10,000, the new law raises the cap to $40,000 for households earning under $500,000, with a gradual phase-out for higher earners. This change is especially meaningful for us, as many of us pay hefty property taxes that far exceed the old limit.
“Just the SALT provision alone means that a family earning $250,000 and paying $18,000 in property taxes will get $5,000 more back when they file their 2025 taxes,” said U.S. Rep. Nick LaLota.
Another key part of this bill also locks in homeowner tax breaks, including the mortgage interest deduction cap at $750,000 and the permanent reinstatement of mortgage insurance premium deductions. For Long Island residents with sizable mortgages, this means more opportunities to reduce taxable income and keep more money in their pockets.
For real estate investors a great boon will come into play from the return of 100% bonus depreciation, allowing them to deduct the full cost of property improvements in the first year. Additionally, the estate tax exemption has been raised to $15 million per person, making it easier for families to pass down property portfolios without facing massive tax bills.
By removing financial barriers like capital gains taxes on primary residences and increasing deductibility thresholds, the bill could encourage more homeowners to sell, downsize, or reinvest—injecting fresh inventory into a market that’s long struggled with low supply. I know we would all love more inventory to choose from!
While critics argue the bill favors wealthier Americans and may increase the national deficit, both Democrat and Republican homeowners living here will more than welcome these breaks as a correction long due to an area overburdened with high taxes.
Unfortunately, in past years, we homeowners in Long Island have gotten hit with all kinds of caps that should never have been placed in our path due to a misunderstanding by those living in lower priced or lower-taxed areas regarding the burden in taxes we are carrying that they do not have to deal with. Correcting this long-term injustice is welcome and hopefully everything together will make selling and buying easier for those entering the real estate market. n
Anessa Cohen lives in Cedarhurst and is a licensed Real Estate Broker (Anessa V Cohen Realty) with over 20 years of experience offering full service residential and commercial real estate and management services. She can be reached at 516-569-5007 and she encourages readers to send any questions or scenarios by email to [email protected].
