• Permanent extension of the post-2017 individual rate schedule and standard deduction
• Lifetime estate, gift, and GST exemption raised to $15 million per person, indexed for inflation. Nice!
• 20% qualified business income (QBI) deduction under §199A made permanent with wider phase-in limits.  This would have hurt if it phased out...
• State and local tax (SALT) deduction cap increased to $40,000 for 2025–2029, then reverts to $10,000 in 2030; phased out above $500 k modified AGI...more to come!  We need to ensure we get under that threshold where possible. 
• 100% bonus depreciation restored for property placed in service after January 19 2025 and expanded to certain manufacturing real property
• Itemized deductions effectively limited to 35% of their value for taxpayers in the 37% bracket...strange!
• Charitable contributions for itemizers reduced by a 0.5% AGI floor; non-itemizers receive a modest above-the-line deduction of up to $2,000
• C Corps:  Qualified small business stock (QSBS) gain exclusion expanded: 50 % after 3 years, 75% after 4 years, 100 % after 5 years; per-issuer cap lifted to $15 million and asset limit to $75 million
• R&D Expensing is back!  2022 through 2024 domestic R&D  previously capitalized can now be reversed.  
• Pass-through entity tax (PTET) deduction preserved without new restrictions!  Massive win for the S Corps and Partnerships.  Lot of planning to come.
• Opportunity zone program made permanent 
• Trump Accounts - a new $1k deposit from the IRS for children born 2025-2029.  There are phase out and income limits here.
• No Tax on Tips - limits
• No Tax on SS  - limits
• Senior Deduction (not a SS tax discount)

The reduced rates stay in place.  That is the good news for high income taxpayers! 

OBBB makes the 20 % QBI deduction permanent. The phase-in thresholds rise to $75k for single filers and $150k for joint filers.  What does this mean?  If you are a HIGH income business that operate.

Taxpayers with at least $1,000 of QBI are guaranteed a $400 minimum deduction, indexed for inflation.

Beginning in 2026, the lifetime exemption for estate, gift, and GST tax increases permanently to $15 million per U.S. person, indexed annually. 

OBBB reinstates 100 % bonus depreciation for qualified tangible property acquired and placed in service after January 19 2025.  

STR owners and REPS will benefit massively as will business owners needing to purchase new assets. 

New §168(n) also permits an elective 100 % deduction for “qualified production property” (certain factories and plants) that begins construction before 2029 and is placed in service before 2031.  We doubt this will have much benefit for small businesses. 

For tax years 2025–2029, individual taxpayers may deduct up to $40,000 of state and local taxes. The cap is reduced by 30 % of modified AGI above $500k (single) or $1m (joint) and never drops below $10,000. It reverts to $10,000 in 2030.

The PTET workaround remains intact. There will be more planning to do in order to max this benefit. 

Beginning in 2025 every child born in the United States receives a $1,000 Trump account funded by Treasury. Families may contribute up to $5,000 per year, and employers can add up to $2,500. Funds must be invested in low-cost index funds with fees capped at 0.1 %.  We have lots to come on this!

The program runs for births through 2028, and accounts opened later do not receive the government seed but still enjoy the tax-free growth and contribution limits.

For tax years 2025-2028 workers may deduct:

• Up to $25,000 of qualified tips, phased out $100 for each $1,000 of modified AGI over $150,000 ($300,000 joint).
• All Fair Labor Standards Act overtime wages reported on Form W-2.  Note - you must be subject to FLSA

These deductions remove the income from federal taxable wages, though Social Security and Medicare taxes still apply. 

Starting in 2025 taxpayers age 65 or older may claim an additional $6,000 deduction on top of the standard deduction (or $12,000 for married seniors). 
The benefit phases out 6 % for income above $75,000 single or $150,000 joint and disappears at $175,000 single / $250,000 joint.
It is important to note - "no tax on Social Security" is a misleading headline.  SS is still taxable and the law is detached from SS. 

For tax years beginning after 2025:

• Non-itemizers may claim an above-the-line deduction of up to $1,000 ($2,000 joint) for cash gifts to qualifying charities.
• Itemizers must reduce their charitable deduction by 0.5% of AGI, effectively imposing a floor. The 60% AGI limit for cash gifts to public charities remains.

For stock issued after July 4 2025:

• 50 % exclusion after a 3-year holding period
• 75 % exclusion after 4 years
• 100 % exclusion after 5 years
  
  

The per-issuer cumulative exclusion cap rises to $15 million, indexed, and the aggregate-asset threshold increases to $75 million, also indexed.

Starting with tax years that begin after December 31 2024, new §174A lets businesses deduct 100% of domestic research costs in the year they are paid. 
For small businesses with average gross receipts of ≤ $31 million, the law allows a one-time retroactive deduction of domestic R&E costs that were capitalized in 2022–2024 by amending those returns. 

Companies that previously deferred domestic R&E costs can also claim a catch-up deduction in 2025, boosting cash flow without hurting the §41 R&D credit.
More to come on this!

The opportunity zone program is now permanent. We have many clients that have participated in the first round and now it gets even sweeter!

Investors may continue to defer eligible gains on a rolling 5-year basis, elect the 10-year basis step-up after holding period, and target new qualified rural opportunity funds for enhanced benefits. Zone designations will be reviewed every 10 years to keep relief focused on distressed areas.

This is just the entry point to the new tax laws!  In 2017, we saved MILLIONS for clients using advanced planning and getting ahead.  Let's do the same this time!  Each items above have nuanced planning that our tax tax has started to research.  Stay tuned for more!