Congress targets big landlords by cutting tax breaks for owners of 50+ single-family rentals

If Congress enacts the bill, the interest deduction ban applies to new rental-property debt taken on after enactment (starting with the next tax year that begins after that date).

Large landlords with 50+ single-family rentals would see higher after-tax borrowing costs for buying or refinancing these rentals going forward, which could slow down new purchases.

If Congress enacts the bill, the depreciation deduction ban applies to qualifying properties first put into rental use after enactment (starting with the next tax year that begins after that date).

Large landlords would no longer get the usual yearly depreciation write-off on newly placed-in-service single-family rentals, reducing the tax benefit of adding more homes to a big portfolio.

Tax filing changes show up when affected owners file returns for the first tax year covered by the new rules.

Impacts become visible in higher tax payments and business decisions (rent increases, slower expansion, or more sales), which can ripple into local rental markets.