7 Tips to Help Real Estate Investors Save on Taxes Under the New Trump Tax Plan
Written by Alpha Sylvester
The One Big Beautiful Bill Act of 2025 introduced new opportunities and challenges for real estate investors. While the tax code remains complex, careful planning can help you minimize liability and protect more of your profits.
Here are seven strategies every real estate investor should consider under the new Trump Tax Plan:
1. Maximize SALT Deductions Strategically
The new law raises the State and Local Tax (SALT) deduction cap to $40,000 (from $10,000). For investors with multiple properties in high-tax states like New York or California, this can mean significant savings. Consider prepaying property taxes or restructuring how you hold properties (LLCs vs. personally) to fully leverage this higher cap.
2. Deduct Qualified Tip & Overtime Income (If You Have Side Income)
Unusual but impactful: the plan allows deductions for certain tip income (up to $25,000) and overtime income (up to $25,000 for married couples). For investors who also work in service industries or W-2 jobs while building their portfolio, this deduction can lower taxable income and free up more capital to reinvest in real estate.
3. Track Every Real Estate Expense in Detail
With standard deductions staying high, you’ll need strong documentation to make itemizing worthwhile. Investors should carefully track repairs, maintenance, insurance, travel to properties, property management fees, and utilities. The more organized your books, the easier it is to prove deductions and maximize tax benefits.
4. Optimize Mortgage Interest Across Properties
Mortgage interest deductions remain capped at $750,000 of eligible debt. For investors with multiple mortgages, plan which loans qualify and how to structure new purchases. Consider strategies like refinancing, paying down high-interest debt first, or even shifting debt to investment properties where interest is fully deductible.
5. Compare Standard Deduction vs. Itemizing Every Year
The elevated standard deduction is now permanent. Some investors may still benefit more from itemizing, especially with higher SALT limits, multiple properties, and large charitable contributions. Run the numbers both ways every year—choosing the wrong method could cost thousands.
6. Watch AGI Thresholds and Income Phase-Outs
Certain deductions and credits phase out at higher income levels. Real estate investors should watch Adjusted Gross Income (AGI) carefully by timing property sales, 1031 exchanges, and major expenses. Deferring income or accelerating deductions can help you stay below key thresholds and keep tax breaks intact.
7. Use Entity Structures and Trusts for Maximum Efficiency
The new plan keeps many benefits for pass-through businesses, making LLCs, S Corps, and trusts powerful tools for investors. Non-grantor trusts, for example, may allow you to multiply SALT deductions by spreading income across entities. Smart structuring also reduces audit risk and strengthens asset protection while optimizing taxes.
Final Thoughts
The Trump Tax Plan of 2025 presents both opportunities and pitfalls for real estate investors. The key is proactive planning—tracking expenses, structuring entities correctly, and aligning your portfolio moves with the new rules.
At Sylvester Tax Advisors LLC, we specialize in guiding real estate investors through these changes, ensuring you not only stay compliant but also maximize every tax-saving opportunity available.
Want a personalized tax strategy for your real estate portfolio under the new law?
[Schedule a consultation today.]
Alpha Sylvester
Alpha Sylvester helps real estate investors save money on taxes so they can grow and protect their portfolios. As both a dedicated fireman and the founder of Sylvester Tax Advisors LLC, he brings discipline, integrity, and real-world experience to every client relationship. With a strong focus on tax planning and bookkeeping tailored to real estate, he equips investors with the strategies they need to maximize profits and achieve financial freedom.
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