07/17/2025
On July 4, 2025, the One Big Beautiful Bill Act (OBBB) was signed into law. This tax and economic legislation will have broad impacts on individuals, businesses, and estates. Here’s a brief summary breakdown of how the OBBB will impact you and your business. This list is not all-inclusive, but please reach out if you have specific questions on how sections of the OBBB will affect you.
Individual Tax Impacts
• Tax rates from the 2017 Tax Cuts & Jobs Act that were set to sunset were made permanent by the OBBB.
• No Taxes on Social Security Income for Seniors: a new deduction for those 65 and older which will result in 88% of seniors receiving Social Security not paying any federal income tax on their benefits, subject to certain limitations.
• Tips and Overtime Pay – are deductible up to $25,000 with certain limitations.
• Child Tax Credit (CTC): Expanded eligibility and increased refundable amounts will reduce families’ tax burdens starting this tax year. The maximum credit is $2,200 per child.
• Standard Deduction Boost: An inflation-adjusted increase to the standard deduction means fewer taxpayers will need to itemize deductions to save taxes.
• Increase in SALT deduction – increased the SALT deduction amount to $40,000 through 2028, subject to certain limitations.
Business Tax Impacts
• Qualified Business Income Deduction IRC 199A: made permanent, which will allow for new tax planning opportunities.
• Section 179 Expansions: The deduction limit has been significantly increased to $2.5 million, allowing small- to mid-sized businesses to immediately expense larger capital investments.
• Bonus Depreciation Extended: The 100% bonus depreciation provision has been reinstated and extended for property acquired after January 19, 2025, enabling faster depreciation on qualifying property.
• Enhancements of IRC 1202 Stock – Expanded benefits when selling small business C Corp stock to exclude most of the gain from the sale.
Estate & Trusts
• Unified Credit: Adjustments to the estate and gift tax exemption threshold is increased to $15 million for 2025, which provides new gifting opportunities for high-net-worth individuals considering lifetime gift planning.
Have questions?
Tax planning is more important that ever. Contact us to review your current tax strategies in light of these changes. We can help.