Real estate business owners spend most of the year executing. The midyear point may mark a smart time to step back and consider your business, your plan, and your personal goals, especially in light of our current environment.
On June 17, the Federal Reserve voted 12-0 to hold its benchmark rate at 3.5%–3.75%, but nine of 18 voting members now project at least one rate hike before year-end. The updated PCE inflation forecast rose to 3.6% by December, up from 2.7% in March. Leading his first meeting, new Fed Chair Kevin Warsh removed prior language that had leaned toward eventual cuts.
The easing cycle that began in late 2025 may be over before it fully materialized. For real estate owners with variable-rate debt, transactions in the pipeline, or refinancing decisions pending, this is a materially different environment than the one most plans were built around.
Debt Structure in a Tightening Environment
The Fed’s June statement removes what had been a subtle easing bias. With half the committee now projecting hikes and inflation running above target, the window for favorable refinancing terms may continue to narrow.
Refinancing property debt remains challenging in the near term, and real estate owners may benefit from scenario-planning across multiple outcomes, including the legal, tax, and financial consequences of potential actions in a shifting rate environment.
Midyear can be a practical time to map your loan maturities, stress-test current debt terms against a range of rate scenarios, and evaluate whether it makes sense to initiate restructuring conversations with lenders before year end.
Tax Strategy in Light of the New Legislative Landscape
Several 2026 tax provisions may create meaningful planning opportunities for real estate business owners.
The One Big Beautiful Bill Act permanently restored 100% bonus depreciation for qualifying property acquired and placed in service after January 19, 2025, eliminating a phase-down schedule that would have reduced the deduction to 20% in 2026 and zero by 2027. For real estate business owners making capital investments in equipment, tenant improvements, or facility upgrades, the permanence of this provision may allow for more confident multi-year planning.
An important nuance: the building structure itself doesn’t qualify for bonus depreciation; the application is for shorter-lived components inside and around the building. A cost segregation study identifies those components by reclassifying them from a standard 39-year depreciation schedule into 5-, 7-, or 15-year categories that are eligible for accelerated deductions. On average, 20% to 40% of a commercial property’s total cost may fall into these shorter-lived categories. For real estate business owners who also own their facilities or hold commercial property, a cost segregation study may now generate a more compelling return than it did under the prior phase-down rules.
1031 exchanges and opportunity zones also remain intact. If you sold property in Q2, the exchange clock may already be running. Investors who sold in Q2 2026 face a 45-day identification window and a 180-day closing requirement; both are hard deadlines. Missing either eliminates the deferral entirely and accelerates the full gain into the current tax year. If you have an active exchange in progress, confirming replacement property status now may reduce execution risk before Q4 compresses every timeline.
Succession Planning and Buy-Sell Agreements
Many real estate business owners put off thinking about or revisiting their succession plans, often at a cost.
A 2024 Supreme Court ruling changed the math on how buy-sell agreements are funded. Following Connelly v. United States, business-owned life insurance proceeds may now inflate the total value of a company for estate tax purposes. If your buy-sell agreement is funded by a company-owned policy, it may be worth taking the time to review whether the structure holds up under current law.
Beyond funding mechanics, succession plans that aren’t integrated with estate documents can leave a business in limbo while courts determine who has authority to act. Who signs payroll if you are incapacitated? Who has authority to negotiate with lenders or vendors? Consider spending some time working through the answers to those questions.
Existing agreements can restrict unrelated parties from taking ownership or control upon death, but only if those agreements have been reviewed and, where appropriate, updated to reflect current business structure, asset values, and family circumstances. If your buy-sell agreement was drafted more than a few years ago, it may not reflect where your business stands today.
Aligning Personal and Business Wealth
Real estate business owners often hyperfocus on their properties and companies, but underinvest in planning for themselves.
Midyear can be a reasonable time to revisit a few questions:
- Are your estimated tax payments aligned with your projected income for the year?
- Are there charitable strategies you have been meaning to structure?
- Has your personal balance sheet kept pace with the growth of your business?
At SignatureFD, our work with entrepreneurs centers on the idea that your business plan and your personal financial plan may work better together than in parallel silos. The SignatureENTREPRENEUR™ framework is built specifically for business owners who want both sides of the equation moving toward the same goals: growing wealth, protecting what they’ve built, and designing a legacy that lasts.
Summer can offer something the rest of the year rarely does: a natural inflection point before the fourth quarter compresses every timeline. The planning conversations you have now may be the ones that matter most by December.
Learn more about how we can help align your business and your life. Get in touch.
