Major Tax Law Changes Creating Unprecedented Opportunities

The One Big Beautiful Bill Act, signed into law on July 4, 2025, represents the most significant tax reform since the Tax Cuts and Jobs Act of 2017. These changes create immediate planning opportunities that forward-thinking taxpayers should act on now.

Individual Tax Changes

Individual tax rates have been preserved and extended permanently, eliminating the uncertainty of TCJA expiration. The SALT deduction cap increases to $40,000 for married couples. Seniors receive an additional $6,000 standard deduction. Various credits have been enhanced and extended.

Business Tax Changes

100% bonus depreciation has been permanently restored. The QBI deduction has been enhanced and made permanent. R&D expensing has been reinstated. Interest expense limitations have been eased for certain industries.

Estate Tax Changes

The estate and gift tax exemption has been permanently increased to $15 million per individual ($30 million for married couples), providing planning certainty for high-net-worth families.

What Hasn't Changed

Long-term capital gains rates remain at 0%, 15%, and 20% (plus the 3.8% net investment income tax for high earners). The corporate tax rate remains at 21%. Alternative Minimum Tax provisions remain largely unchanged.

Immediate Action Items

Review equipment purchase plans in light of permanent 100% bonus depreciation. Evaluate entity structure given enhanced and permanent QBI deduction. Consider accelerating or deferring income based on new rate certainty. Update estate plans with permanent higher exemptions in mind. Schedule a comprehensive tax planning session to capitalize on these changes.