On July 4, 2025, President Trump signed into law the landmark One Big Beautiful Bill Act (BBB)—a sweeping tax and spending reform package that reshapes U.S. fiscal policy and presents meaningful planning opportunities for wealthy individuals, multigenerational families, and business owners.  Below is a summary of some of the most impactful provisions:

Permanent TCJA Tax Rates & Enhanced Standard Deductions

• The individual tax brackets introduced under the 2017 Tax Cuts and Jobs Act are now permanent, avoiding the previously scheduled 2025 sunset.
• Standard deductions have increased to $31,500 for married joint filers, $15,750 for single filers, and $23,625 for heads of household. An additional $6,000 deduction applies for seniors.

Expanded SALT Deduction

• The State and Local Tax (SALT) deduction cap has been raised to $40,000 for joint filers ($20,000 single), with a phase-out beginning at higher income levels. The increase is indexed through 2033.
• Why it matters: This change provides renewed deductibility for taxpayers in high-tax jurisdictions—restoring valuable after-tax income for many affluent households.

Estate, Gift & Business Tax Planning Enhancements

• The estate and lifetime gift tax exemption has been increased to $15 million per individual, indexed for inflation, preserving strategic opportunities for intergenerational wealth transfer.
• The 20% Qualified Business Income (QBI) deduction under Section 199A remains intact, alongside full bonus depreciation for business assets through 2029—continuing to benefit pass-through entities and private business owners.

Extended & Permanent Qualified Opportunity Zone (QOZ) Program

• The current QOZ regime, allowing deferral of capital gains via Qualified Opportunity Funds (QOFs), will sunset on December 31, 2026 for existing zones.
• A newly structured and more targeted QOZ program will launch January 1, 2027, running through 2033 and becoming permanent thereafter through rolling 10-year designation cycles.
• Under OZ 2.0 (post‑2027 investments):
  • 10% basis step-up after 5 years in non‑rural QOFs.
  • 30% basis step-up after 5 years in Rural Opportunity Funds (QROFs)

Enhanced Qualified Small Business Stock (QSBS) Incentives

• Section 1202 treatment of QSBS now features tiered capital gains exclusions.
• The lifetime exclusion cap has been raised from $10 million to $15 million, and the gross asset limit for eligible companies has been increased to $75 million.
• Impact: Investors in early-stage companies now benefit from greater and earlier tax-advantaged exit opportunities.

If you’d like to explore how these changes affect your specific situation, we invite you to schedule a conversation with our team.  We’re here to help you navigate the new landscape with clarity and confidence. Additionally, we encourage you to consult with a CPA to gain deeper insights into how these updates may impact your tax strategy. You. First. Always.

Sources

1. Vox – What Trump’s massive bill would actually do, explained
   https://www.vox.com/politics/418599/one-big-beautiful-bill-act-details-explained
2. The Guardian – Trump tax bill passes Congress in major win for president
   https://www.theguardian.com/us-news/2025/jul/03/trump-tax-bill-passes-congress
3. Kiplinger – 2025 Standard Deduction Changes Under New Trump Tax Bill
   https://www.kiplinger.com/taxes/the-new-standard-deduction-is-here
4. Loeb & Loeb LLP – Breaking Down Key Changes in the New Tax Legislation
   https://www.loeb.com/en/insights/publications/2025/07/the-one-big-beautiful-bill-act
5. Baker Botts LLP – Key Tax Takeaways from the BBB Act
   https://www.bakerbotts.com/Thought-Leadership/Publications/2025/May/The-One-Big-Beautiful-Bill-Key-Tax-Takeaways
6. Greenberg Traurig LLP – Senate Finance Committee’s Updated QOZ Provisions
   https://www.gtlaw.com/en/insights/2025/6/senate-finance-committee-proposes-updated-and-permanent-qualified-opportunity-zones
7. Pillsbury Law – Opportunity Zones and the Big Beautiful Bill
   https://www.pillsburylaw.com/en/news-and-insights/opportunity-zones-big-beautiful-bill.html
8. RSM US LLP – How the BBB Act Affects Individual Taxpayers
   https://rsmus.com/insights/services/business-tax/one-big-beautiful-bill-individual-tax.html
9. Whiteford Law – Estate and Tax Planning Implications of the BBB Act
   https://www.whitefordlaw.com/news-events/client-alert-one-big-beautiful-bill-act-enacted-into-law
10. Midwest CPA – Tax Reform Summary: The BBB Act
    https://midwest.cpa/resources/one-big-beautiful-bill-act