How New Tax Changes Impact Real Estate Investors: Big Beautiful Bill Explained

🚨 Major tax changes are here — and real estate investors who don’t adapt could lose BIG.

In this episode of The BRRRR Investor Podcast, Alex Nahle sits down with Nicole Green from Robert Hall & Associates to break down the latest tax strategies, reforms, and investor opportunities tied to the new “big, beautiful bill.”

👉 This episode could save you thousands — maybe even tens of thousands — if you own or plan to own real estate.

🎯 What You’ll Learn:

✅ The most important updates from the new “big, beautiful bill”
✅ How it differs from previous tax reforms
✅ Major SALT cap increase and why high-income investors should pay attention
✅ New tax deductions starting in 2026 for educators, coaches & administrators
✅ How 100% bonus depreciation + cost segregation supercharge cash flow
✅ The latest on 1031 exchanges, pass-through entities, and smart tax moves
✅ Practical strategies investors and agents can implement right now

⚠️ Most investors won’t hear about these changes until it’s too late. Don’t be one of them.

Visit roberthalltaxes.com or connect with Nicole at nicole.green@roberthalltaxes.com

Thank you SO much for stopping by! I appreciate you!
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Transcript

Alex Nahle [00:00:00]:
Welcome back to the BRRRR Investor Podcast, where our mission is to empower aspiring real estate investors in their journey towards building generational wealth. Nicole, welcome back. It's so great to see you again.

Nicole Green [00:00:14]:
Good morning. Thank you for having me.

Alex Nahle [00:00:17]:
Absolutely. So the last time you were here on our live webinar, you dropped a ton of nuggets for real estate investors, especially one of my very favorite, which is cost segregation and how powerful that can be for real estate investors. So if you're watching or listening to this podcast episode and you missed that live with Nicole last time, go ahead and check out our YouTube channel. Okay. And especially if you want to learn more about cost segregation, go to alexnahleonvideo.com. And while you're there, like, and subscribe so you get notified on future episodes. Today, the exciting, exciting topic we're going to talk about is the big beautiful Bill. Truly want to hear your insight on this today.

Nicole Green [00:01:01]:
Every few years, there's going to be a change in the tax bills and laws and stuff. So we were expecting this because Trump's first term, he did a bunch of changes. And when presidents do changes, they are short term, they expire, they phase out, they end. And so then comes a new president or whenever that phase out happens, somebody that needs to either keep the change, take away the change, or put in a new change. And so we were expecting this. Trump stayed his normal course and did a lot of changes, A lot of changes, not all of which we understand how are gonna how it's gonna happen. And you know, well, we'll, we'll see. So some of them are 2026.

Alex Nahle [00:01:53]:
Wow. Okay, now before we get deeper into this, if you can please take a moment and share a little bit about yourself and your background. You know, I know you have an extensive background in what you do and you're truly passionate about what you do. So if you can please take a moment, that would be awesome. In case someone doesn't know. Doesn't know you yet.

Nicole Green [00:02:14]:
Yeah. So like I said, my name is Nicole Green. I work at Robert Hall and Associates. Robert Hall and Associates is a tax firm. That is what we do. We do tax strategy, tax advising, and obviously we prepare taxes. I greatly, greatly enjoy doing taxes because it's very. When I was a kid, I wanted to be an attorney. And then when I was in school, like studying, like to pre law, I was like, I don't want to argue every day. Like, I just was like, I don't want to do that. Like you're constantly arguing. But I still enjoyed the aspects of finding the loopholes and kind of like wiggling around a maze. And tax gave me that, like, that's what tax is. We don't live in a flat tax country, thank God. And so we were able to, you're able to kind of play around with things. You're able to really use some different strategies to pay different amounts of tax, depending whatever your goals are. And I really enjoy educating my clients, educating my team on different things. I have to continuously get educated because there's always changes. You can't just like do the same thing over and over and over again. That's like not how tax works. Like, there's changes and it's really, it's really fun. It's just fun.

Alex Nahle [00:03:45]:
I'm glad you find that fun. We need someone like you. So, yeah, like you said, you know, you, you definitely have to stay up to date with all the changes. So that's, that's truly, truly important. And one thing that I want to share, you know, about Robert Hall Associates with my experiences. You guys are big in the real estate community. Obviously you do, you know, taxes and consulting and so forth in general. However, you know, I feel you guys a big niche is working with real estate investors. Am I wrong about that?

Nicole Green [00:04:14]:
We here at Robert Hall and Associates did not intentionally get really big into the real estate community. We kind of fell into it because we believe in it so much that we have just like developed a name for it. We constantly, our personal selves are involved in real estate and that's. Yeah, that's why it just, it just organically happened. And we believe in real estate so, so heavily that we just really go into the field quite a bit.

Alex Nahle [00:04:44]:
I mean, it's, it's interesting you mentioned that. I feel that's, that's profound because, you know, the way I look at it, even like when you're working with a realtor or with a lender or any one team member that you need to continue this puzzle is if you're not working with someone that's actually doing it or does it and failed and succeeded, it's like chances are they're not going to be able to help you that well, you know. So I appreciate that about you guys because, you know, you're in it, you do what other investors do and you know what it takes. So that is awesome. Now, I do know you're also passionate about traveling. Do you want to share a little bit about that?

Nicole Green [00:05:24]:
I mean, I like to understand other people's normal. Like, not everybody has the same normal. And I Went out for about 10 years and lived abroad, which was absolutely insanely beneficial to me. It was literally changing. And I think it played such a big role into how I operate today because I understand that while I do this and I work like this and everything like that, that's not everybody's norm. Everybody. And so when I'm sitting with my clients, I can understand that my normal is not their normal. And it helps me like not push things on to my clients and go like, okay, these are your choices. You decide. And so it really, really traveling has made it such a benefit to my career. And you know, I've been to all seven continents. I've been to well over 50 countries. It's been like. And I continue to go and I, I just love it. I love, I love seeing other people's stuff. I mean, I do taxes. I get to get into everybody's stuff. I love it though.

Alex Nahle [00:06:34]:
Now, is there a favorite destination for you?

Nicole Green [00:06:37]:
like the hidden. I don't want to call it like hidden gems, but maybe like the less popular places would be probably some of my favorite. I lived in Argentina for quite a while. I was supposed to be there for just a few months and I stayed for a few years. I went to South Africa and I absolutely greatly enjoyed that. And like those places where not. It's not like Italy and Greece and like, even though Greece is like so amazing, like, like I love those places too. But you know, those way you're really kind of discovering and not just finding like following some sort of map and some plan. I love that.

Alex Nahle [00:07:15]:
Very, very true. We're trying to apply that as well now in our travels as the kids are getting older, because it's fun to just get off the trail and just do the things that, you know, non touristy things, right?

Nicole Green [00:07:27]:
Yeah, that's exactly it. Like you can go see some stuff in books, but like going to other places and just seeing something that's not in the book is like, wow.

Alex Nahle [00:07:36]:
Yeah, no, that's very, very true. Well, that's awesome and I appreciate you sharing that with us. Let's get back into this big, beautiful. Bill.

Nicole Green [00:07:44]:
Yes.

Alex Nahle [00:07:45]:
You tell us, how is it different from previous tax reforms like the like or tax cuts to like the jobs act of 2017, for example?

Nicole Green [00:07:56]:
It's different in what it does. So it extended the TCJ stuff. So it continued all of that. And in there they increased the standard deduction, they capped some things, but now it just took that to a new level. So we are going to see salt taxes that have been capped at $10,000. They have increased up to $40,000 in assault taxes, like state and local taxes. So like sales tax, property tax, income tax that you pay to the state. And I'm in California and my property tax is definitely over 10k by itself. So I always hit that cap and now it's extending to 40,000. So a lot of people are going to be able to take a larger deduction. That $10,000 cap was really kind of, was kind of painful for some people. And so that's been really nice. There's a extension for teachers in there that hasn't been completely figured out, but it's also including non traditional, like teachers and includes coaches. And so that they're able to take deductions, which has been eliminated before. Like, you're not, if you're a W2 employee, you're not allowed to take deductions. And when way back when we saw teachers, firefighters, police officers, lots of civil servants taking deductions, not itemized deductions, but taking deductions from things they were buying for, you know, their work. And then that got eliminated and now it's opening it up to teachers and saying, like, okay, we know teachers are buying things that the school isn't providing, and so it's allowing them to take deductions and it's opening it up to, like, non traditional teachers. What you think of teachers, teachers, you've got administrators, you've got counselors, you've got coaches that are now going to be able to take these deductions. It's not completely defined. And so that won't be put into effect until 2026, because some of these things that are in the bill, it's like, I'm sorry, how are you going to do that? And politicians write the laws and the IRS puts it into effect. And so the IRS has said that it needs some time, some time for some of these things.

Alex Nahle [00:10:23]:
Well, this is very, it's a, it's a great thing to hear because, you know, a lot of our. We have a big clientele base that are educators that are teachers, you know, have investors that I currently work with and business partners that are actually, you know, educators. So this is pretty cool. And, you know, I'm glad we're sharing it on this platform because this is what it's all about, to spread as much information as, you know, we can. And, and then if you're listening to this and this applies to you and you want to learn more about it, you know, we're going to share Nicole's contact information. At the end. So please reach out to her because that's what they're here to provide that support. And then, you know, if there's any services they can provide you, they, I'm sure that you'll find them as being a good fit. So thanks for touching on that. That I, you know, that I did not know at all. So you did mention about a lot, a lot of the different deductions pertaining to like rental property, rental property income. Is there anything, you know, are there like, any new limits or opportunities that you know, we should know about?

Nicole Green [00:11:21]:
Well, we're back to 100% depreciation, which some people are like, yay. And then some people are like, it really kind of depends. But people in the real estate world, this is where I think it actually is a gem. 100% depreciation in the real estate world, yes, 100% depreciation. Because you have a business and you want to take your, you know, G wagon that you buy. Like, why are we doing that? Like that? I. Yes, you can, but I sometimes wonder why. But in the real estate world, this is really a great thing because if you're trying to grow your portfolio, this is one of the ways you can grow your portfolio without putting in new money. You can go ahead, buy a property, do a cost, depreciate the crap out of that property, have two to three years of really large tax savings, take that tax savings, go buy another, rinse and repeat, rinse and repeat for several years. And now you're going to be, you know, 10, 15 years down the road. Your portfolio is going to be, you know, 4x of what you initially thought it was going to be in a much shorter amount of time. Yes, everything will be really depreciated, but that's a different problem that we can deal with because your income is also going to massively grown. And so that's, you know, it really can benefit people. And you don't have to worry too, too much about like the future, especially when there's more income coming in. Like, we can deal with those. Those are what we call good problems.

Alex Nahle [00:12:57]:
Yeah, sounds like cost sake strategy on steroids.

Nicole Green [00:13:02]:
I love car segs so much, but cost sakes are for people that want to grow. Sometimes people will be like, I just want to lower my tax bill. And it's like, you're not eliminating tax, you're just moving your depreciation forward. And so it's not a matter of like, oh, okay, let me do this cost. Like, let me reduce my tax and let me go to Fiji on a vacation? No, no, no, no. You need to continue to invest.

Alex Nahle [00:13:31]:
That's a very good point. Yeah. Now as far as 1031 exchanges, are there, you know, under this specific bill, are there anything, any new restrictions, any changes that are, you know, profound that you think we should know about as well?

Nicole Green [00:13:44]:
For 1031 No, there's not anything really. 1031 have been going through quite a bit of a change over the last few years just because of different things that have put like pauses on things because here in California we have the fires. And so that also put a pause like the 180 days and the 45 days. And so the different time limits that were happening with 1031 have relatively been paused for quite a bit. That is all like over those pauses and things are over. And so they're going back to their normal way. They've also increased the different types of things that you can do in a 1031. And this really, it's a small thing, but I really tell people, like, don't worry about it. Like really fault the average person is not, is always going to be able to do the exchange because there's different things that you can do in exchange. Like if I had a fleet of cars and I wanted to buy like some boats and you know, like you can do a 1031 into that. It's kind of very specific. But if it's a business, if it's a business investment that you have, you're. You want to put it into another like business investment, you're probably going to be able to do it. And so 1031s, while the time limits are coming back, the ability to do them is actually increasing of what you can. 1031.

Alex Nahle [00:15:10]:
Okay, well, very, very cool. We do have, you know, agents in our community as well. And you know, many real estate agents, real estate brokers, you know, have path pass through entities like S Corps or LLCs and so forth.

Nicole Green [00:15:26]:
Yeah.

Alex Nahle [00:15:27]:
Are there anything with this bill that you know, also affects such independent contractors?

Nicole Green [00:15:35]:
Yeah. So LLCs and S Corps are really great. It's the big thing of knowing when you can take things and when you should switch. Switch from an LLC or an S corp or switching from an LLC to an S Corp. Excuse me. And there's not really any big changes. One thing, because assault taxes has increased. PTE, which is the pass through entity tax credit is becoming less important. PTE is a. Was a way for the states to get around that $10,000 salt tax limit. It happened in more expensive states. Right. Like if you're living in Iowa, your property tax might not be $10,000. But here in California, your property tax, your personal property tax is going to be probably over $10,000. And so that $10,000 cap was really like a problem. It was an issue. And what the states had done to get around this federal thing is, the federal limitation is, is they said, if you have a business, your business can pay for part of your state income tax through the business. So you can get more of that deduction because SALT taxes include your state income tax, include sales tax, and it includes, like, property tax. And so if the state income tax that I pay is getting paid through the business, now that's another deduction. And so now I'm not missing out on all of my deductions on that personal side when I'm itemizing myself. And now that that has increased that the personal deduction limit from 10,000 to 40,000 for some people, you can really see that there is going to be less of a need for PTE. And also because PTE is a set percentage, it's 9.3% of your profits. When people do PTE, sometimes what happens is the credit is larger than their state income tax. And so you do PTE for two, three years and then deposit because you're, you're going to accrue this credit that you're carrying forward, right? And so, like, my PTE credit is, let's just say, 25,000, and then every year it's 25,000, but my taxes may be, you know, 24,000. And now I'm just having carryover credit that I'm having to carry over every year. And that carryover will expire after five years. So then you have to pause it, and then you can go back into it. And so now, because the SALT tax has increased, you really might find that this carryover credit that you're having that you might have is going to increase a little bit. It's going to be more than like a thousand dollars you're carrying over. For some people, it's going to be like 10, 15,000. And so you might do PTE one year, and you might have to wait two years before you can do it again, which is fine. I mean, it's totally fine. You can play, you should be playing the game like your taxes. I don't believe your taxes really need to be very consistent every year. Yes. At the end of the day, you want your stuff to flow pretty consistent and you want to balance, but the strategies and the techniques that you use can vary. One year you can have an energy credit. One year you can have PTE. Like things can vary quite a bit in your tax returns. So, so that you can really use your tax returns to your biggest advantage.

Alex Nahle [00:19:12]:
Wow, talk about, you know, strategy, right? Like, you know, how would you do that on your own? So that's pretty cool. Very, very strategic there. Now does that tie directly, you know how, you know, with the commission incomes and write offs and so forth like home, office, travel or marketing, does that tie into that in any way or is that completely independent and is that affected negatively in any way?

Nicole Green [00:19:37]:
So depending on how you, you're set up, you can do a business use of home and like that there. It's going to be called different things depending on how you're set up, but you can always get it in. And all of that has really remained the same people. There's different research credits. R and D stuff is also kind of been happening. But this isn't a real big change with the big beautiful bill.

Alex Nahle [00:20:08]:
Okay, so we're, we're coming to an end and you know, one, one question I want to share with you is, what I want to ask you is what tax saving strategies do you feel that, you know, real estate investors considering implementing before these changes take effect? What do you feel are some things that people should definitely focus on and apply for their personal portfolio?

Nicole Green [00:20:34]:
When I talk to my clients, I say to them very much, what are the goals? What are we trying to do for the next five years, 10 years? What is happening and understanding what those goals are is really what's going to determine how you best utilize your tax return. Because I tell people your tax return can be a dull butter knife or it can be a extremely sharp and deadly machete. It is your choice. You can decide how much risk, how conservative you want and how really how much tax you want to pay. It's your, I mean, we're going to pay tax. Now I'm not saying don't pay taxes like you're going to pay tax, but you have a lot of control over it. And when people start thinking about their tax return in terms of the goals of what's happening in their life, like my mother in law is getting ready to move in because she has health issues. My kids are going off to college and now I'm going to have to be paying a ton, not just in tuition but to support them out of my house and I'm going to be paying for that. You know, you can use all of those things in different ways. You can There's a lot of benefits. And when people are really starting to understand that, they can understand that like maybe lowering my tax is important, but I'm willing to not lower it as much as I can because I get this on the other side. There's a nice balance. And I always give that same, the same example every time. I can take your tax down to like nearly nothing. But if you're trying to buy a house in two years and I have dropped your tax down to nearly nothing, you have problems, I have now hurt you. And so when you're putting it in and thinking about it as not just a single year tax return, but really it following you and being a part of your actual life goals, you can really understand that, like, okay, I don't mind paying an extra couple hundred dollars here like this because it's going to help me get this type of thing.

Alex Nahle [00:22:39]:
Yeah. And personalized is, is just a game changer because it's like, it's not a cookie cutter thing. Right. People do like this person, that person, but we all have, you know, we're on a different journey and you know, it's not about cut taxes, pay, not pay, it's about, you know, what's going to be the best for you. So that is awesome. And you know, with that said, it's probably a perfect time, you know, to connect with you and you know, to set up like a personalized tax plan and you know, to be able to come through to the finish line in 2025 to be prepared and then also be prepared for 2026. So with that said, what is the best way for our listeners or those that are watching this on YouTube to connect with you and the team at Robert hall and Associates?

Nicole Green [00:23:25]:
Yes, we at Robert Hall Associates, we do tax strategy. That is our main thing is to help people understand where they want to go in their tax world. And so one way we also do that because we're very big believers in education is we offer a free 30 minute consultation. People always want, you know, questions when they find out I'm a tax accountant, they're like, wait, excuse me, I always have a question. And that's, I don't mind talking about tax. I can talk about tax all day. However, sometimes you have to get really personal. We need to see people's tax returns and things like that. And so to answer people's questions, we offer this free 30 minute consultations which is really like, you know, 400, $500 value. They can go to our website, roberthalltaxes.com and sign up for consultation, you can send me an email. nicole.green@roberthalltaxes.com we love to talk with people. We love to see where people's things are and strategies are. As I said earlier, I enjoy understanding what people's normals are like. That's just. We enjoy it very much.

Alex Nahle [00:24:34]:
That is so awesome and it truly shows your passion. We've spoken multiple times and you're always very passionate, very energetic. So please take Nicole up on that offer. We'll also put that information in the comment section below with the links. We'll also have, you know, Nicole's bio in there, so please check that out. Connect with her. Nicole, I truly want to thank you once again for being here. You're a wealth of knowledge for myself and the community and I want to thank everybody at Robert Hall and Associates as well. You have an awesome day.

Nicole Green [00:25:08]:
Thank you so much.

Alex Nahle [00:25:10]:
Thank you all for joining us on the BRRRR Investor Podcast. If you found today's episode helpful, please hit like and subscribe to our subscribe channel for more real estate insights. We love hearing from you, so please leave your thoughts, questions or topics you'd like us to cover in the comments section below. Be sure to check out our website thebrrrrinvestor.com and follow us on social media @thebrrrrinvestor. Keep learning and investing and we'll see you in the next episode. I'm your host, Alex Nahle. Stay invested.