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In a significant win for individual investors, small business owners, and retirement planners alike, the Qualified Business Income (QBI) deduction has been made permanent under the newly passed federal tax legislation. Originally introduced as part of the 2017 Tax Cuts and Jobs Act, this provision allows eligible taxpayers to deduct up to 20% of their qualified income from pass-through entities—including real estate investment trusts (REITs)—when calculating their taxable income.
For investors in mortgage funds structured as REITs, such as the TaliMar Income Fund, this development is especially noteworthy.
The permanence of the QBI deduction removes a layer of tax policy uncertainty that had loomed over high-net-worth individuals and family offices considering REIT-based investment strategies. Prior to the legislative change, the deduction was scheduled to sunset at the end of 2025. Its extension now ensures ongoing access to one of the most meaningful tax advantages available to investors using non-retirement capital.
Here’s how it works in practice: if you receive income from a REIT-structured mortgage fund like TaliMar Income Fund, you may be able to deduct 20% of that income from your federal taxable income. For investors focused on generating passive income while preserving capital, this additional layer of tax efficiency can have a measurable impact on long-term returns.
Mortgage fund investing has long been appreciated for its combination of asset-backed security, consistent income, and relative insulation from public market volatility. Now, with the QBI deduction made permanent, these funds offer even more compelling after-tax yield potential—especially for those allocating capital from brokerage accounts or family trusts rather than retirement vehicles.
The timing of this change also matters. As investors reevaluate traditional fixed-income strategies amid inflation and rate uncertainty, alternative income vehicles like real estate-secured mortgage funds have seen increased interest. The permanence of the QBI deduction further validates this shift and reinforces the structural advantages of private credit strategies within diversified portfolios.
For current and prospective TaliMar Income Fund investors, the takeaway is clear: this legislative update enhances the long-term appeal of your investment. That said, it’s important to consult with your tax advisor or financial planner to ensure your accounts are properly structured to maximize this benefit.
If you have questions about how the QBI deduction impacts your investment or how to position your portfolio for greater tax efficiency, our Investor Relations team is here to help.
Want to learn more?
Contact us at invest@talimarfinancial.com or (858) 242-4900 to speak with our team.
TaliMar Income Fund I offers investors the ability to participate in the rapidly growing demand for private real estate debt. The fund is comprised of a diversified portfolio of short-term loans secured primarily on residential single family and multi-family properties throughout California. The fund manager, TaliMar Financial, was established in 2008 and has successfully funded over $500 million in loans. Investors in the mortgage fund include high net worth investors, family offices, and private equity funds who are seeking consistent monthly income, the security of real estate, and the tax benefits of a mortgage fund structured as a real estate investor trust.
Disclosure: This advertisement is for informational purposes only and does not constitute an offer to sell nor a solicitation of an offer to buy any security. Such offers can only be made by the Private Placement Memorandum (“PPM”) and related subscription documents. Any investment in TaliMar Income Fund I involves significant risk. You should not enter into any transactions unless you fully understand all such risks and have independently determined that such transactions are appropriate for you. Business Purpose Loans arranged through TaliMar Income Fund I, LLC (DFPI CFL License No. 60DBO-137778).
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