Executive Summary
The One Big Beautiful Bill Act represents the most significant tax reform since the Tax Cuts and Jobs Act of 2017. This comprehensive legislation makes many TCJA provisions permanent while introducing new deductions and opportunities for individuals and businesses.
Made Permanent
- • 37% top tax rate
- • $15M estate exemption
- • 100% bonus depreciation
Temporary (2025-2028)
- • Tips deduction ($25k)
- • Overtime deduction ($25k)
- • Auto loan interest
New Opportunities
- • Trump accounts
- • SALT increase to $40k
- • Senior deduction
Implementation Timeline
2025
Immediate Changes
- 37% top rate permanent
- SALT deduction increases to $40k
- Tips & overtime deductions begin
- Trump accounts launch
2026
Continued Benefits
- Child tax credit inflation adjustments
- Senior deduction available
- Auto loan interest deduction active
2028
Temporary Provisions Expire
- Tips deduction ends
- Overtime deduction ends
- Auto loan interest deduction ends
2029+
Permanent Provisions Continue
- $15M estate exemption
- 100% bonus depreciation
- Enhanced QBI thresholds
TCJA vs OBBBA Comparison
| Provision | TCJA (2017) | OBBBA (2025) |
|---|---|---|
| Top Tax Rate | 37% (expires 2025) | 37% (permanent) |
| SALT Deduction | $10,000 cap | $40,000 cap (phase-down at $500k AGI) |
| Estate Tax Exemption | $11.7M (expires 2025) | $15M (permanent, indexed) |
| Child Tax Credit | $2,000 | $2,200 (inflation adjusted) |
| QBI Deduction | Original thresholds | Thresholds +$100k |
| Bonus Depreciation | Phasing down | 100% (permanent) |
| QSBS Holding | 5 years | 3 years |
| Senior Deduction | None | $6,000 (age 65+) |
Financial Planning Opportunities
Estate Planning
- ✓Lock in $15M exemption
- ✓Review trust structures
- ✓Consider lifetime gifting
- ✓Update beneficiary designations
Tax Optimization
- ✓Maximize SALT deduction
- ✓Leverage Trump accounts
- ✓Accelerate depreciation
- ✓Review entity structure
Business Strategy
- ✓QSBS timing (3-year hold)
- ✓QBI optimization
- ✓R&D expense planning
- ✓Charitable giving strategy