Trump’s Return: Potential Real Estate Impacts

Most political analysts predicted a close race, but Donald Trump pulled off a decisive victory with 312 electoral votes to Kamala Harris’s 226, and he became the first Republican since 2004 to secure the popular vote. Meanwhile, Republicans strengthened their grip on Congress, flipping four Senate seats to claim a 53-seat majority while maintaining control of the House with 218 seats.

Trump and his team want to make the 2017 Tax Cuts permanent before their 2025 expiration, which would provide upward pressure on real estate valuations and corporate profits. The preservation of 1031 like-kind exchanges remains protected, letting investors defer taxes when reinvesting proceeds and restored 100% bonus depreciation for both new and used properties. On the flip side – those proposed 10-20% import tariffs will likely increase the cost of building materials, and aggressive policing of immigration laws may increase deportations and have an outsized impact on the construction industry workforce.

Vanamor specializes in tax-efficient investing for long term wealth creation so the combination of both the restored 100% bonus depreciation and safety in the 1031-exchange greatly enhances our strategic offerings. Our last two investments provided ~50% taxable losses (on paper) which will likely increase closer to 75% with the return of full bonus depreciation. With these tools, I am confident in saying that there is no better asset class to have in one’s portfolio than cash flowing real estate.