How the “One Big Beautiful Bill” Impacts Real Estate in San Diego

(And How Derek Jones Can Help You Make the Most of It)

The One Big Beautiful Bill Act (H.R. 1, Public Law 119-21), signed into law on July 4, 2025, introduced powerful updates to the U.S. tax code — and San Diego residents, buyers, sellers, and investors are perfectly positioned to take advantage.

From increased deductions to new investment write-offs and development incentives, this legislation opens up new doors for anyone looking to buy, sell, or build in San Diego.

But making the most of it takes more than just reading headlines. You need a local expert who knows how to turn federal policy into local opportunity.

That’s where I come in.

For San Diego Homebuyers: Real Savings, Real Strategy

Higher SALT Deduction Cap

What changed:
The State and Local Tax (SALT) deduction cap increased from $10,000 to $40,000 for joint filers earning under $500,000.

Why this matters in San Diego:
With higher property taxes and state income tax rates, San Diegans now have access to a much larger deduction — translating to real savings on their federal returns.

📍 Example:
A San Diego homebuyer paying $32,000 in property taxes and $8,000 in state income tax can now deduct the full $40,000 — potentially saving over $10,000 per year, depending on their tax bracket.

🛠️ How I Help

I don’t just help buyers find homes — I help you make tax-smart buying decisions. I walk you through total cost of ownership, not just your monthly payment. I also connect you with experienced San Diego-based lenders and CPAs to ensure you’re getting every dollar of deduction you're entitled to.

Mortgage Insurance Deduction Reinstated

What changed:
Mortgage insurance (PMI or MIP) is tax-deductible again for buyers who put down less than 20%.

Why it matters in San Diego:
With San Diego’s home prices, many buyers choose smaller down payments. This change helps you offset the cost of PMI — often saving $1,500–$2,000 a year.

📍 Example:
Buyers putting 15% down on a $1.5M home may pay $5,000/year in PMI — now deductible under the new tax law.

🛠️ How I Help

I help you compare loan scenarios and guide you toward options that align with both your budget and your tax planning. I make sure your lender, CPA, and agent are all working from the same playbook — yours.

For San Diego Sellers & Investors: New Ways to Reduce Taxes and Maximize Profit

100% Bonus Depreciation

What changed:
You can now deduct 100% of the cost of qualifying improvements in the year they’re made — permanently.

Why this matters in San Diego:
Whether you're updating a rental, flipping a property, or improving a multi-unit investment, this lets you immediately write off those costs instead of depreciating them over years.

📍 Example:
If you invest $250,000 in property improvements this year, you can deduct the full amount — reducing taxable income and boosting your return.

🛠️ How I Help

I work with investors across San Diego to source high-potential properties, plan smart renovations, and make sure those upgrades are positioned to deliver both market value and tax savings. I also partner with trusted local CPAs who understand how to properly document and file for full benefit.

Affordable Housing Tax Credits for Developers

What changed:
The bill expands Low-Income Housing Tax Credits (LIHTC), giving developers tax breaks for including affordable housing in new projects.

Why this matters in San Diego:
With a growing need for housing at all price levels, this creates opportunities for developers to serve the community and improve project profitability with long-term tax credits and depreciation bonuses.

🛠️ How I Help

Whether you're looking for infill opportunities, teardown lots, or mixed-use potential, I help developers evaluate sites, understand zoning, and structure projects that align with San Diego’s building regulations — and this new federal incentive.

Final Thoughts: This Isn’t Just a Tax Change — It’s a Playbook

The One Big Beautiful Bill gives San Diegans real leverage — if you know how to use it. From higher deductions to improved investment returns, this is a powerful moment to act smarter, not just faster.

But none of that matters unless you have the right local guidance.

Let’s Make This Bill Work for You — Right Here in San Diego

I’m Derek Jones, a San Diego REALTOR® who brings strategy, real-world experience, and a tool bag full of local resources to every transaction.

Here’s how I help:

✅ I explain how new laws affect your specific goals
✅ I partner with San Diego-based lenders, CPAs, and contractors
✅ I help buyers, sellers, and investors plan smarter — not just move faster
✅ I make sure your next real estate move is financially optimized

Let’s Talk Strategy

📞 Call or Text: (619) 980-2712
📧 Email: [email protected]
🌐 Website: DerekJonesRealEstate.com

Not your average REALTOR® — a Realtor with a tool bag.