While fireworks erupted around the country on July 4th, President Trump was setting off fireworks of his own by signing into law the “One Big Beautiful Bill Act”. However, many of the new policies simply extend or expand the current laws under the Tax Cut and Jobs Act of 2017 (TCJA).
Below are some major highlights and strategic tax planning opportunities worth mentioning.
Estate Tax Exemption
For larger estates, the government imposes a steep tax (approximately 40%) on assets at the end of one’s life. In 2017 the TCJA nearly doubled the exemption for estate taxes, which will now be up to $15M per person in 2026 ($30M for married couples), reducing the number of households subject to estate taxes.
For instance, a family with a $30 million net worth could save approximately $6 million in estate taxes due to this extension.
No Taxes on Social Security Benefits?
You may have also seen news outlets proclaiming the bill eliminates Social Security tax. Unfortunately, that is not the case. Instead of eliminating taxes on Social Security, Congress opted for a provision giving seniors (65+) an extra deduction of $6,000 ($12,000 for married taxpayers filing jointly) from 2025-2028, regardless of whether they have claimed Social Security. For many taxpayers the enhanced deduction for seniors may end up eliminating some of the taxable income from Social Security, but there are no provisions in the new bill directly affecting the way Social Security benefits are taxed.
SALT Cap Extension
The One Big Beautiful Bill significantly increases the State and Local Tax (SALT) deduction cap from $10,000 to $40,000 for 2025, providing substantial tax relief for many taxpayers subject to high state and local taxes. For Louisiana clients with high state income tax bills and Texas clients with large property tax bills, this could be beneficial to evaluate in your tax planning.
Business Depreciation
The One Big Beautiful Bill reinstates 100% bonus depreciation for eligible tangible property acquired after January 19, 2025, allowing businesses to fully deduct the cost of qualifying assets in the year they are purchased and placed into service. By accelerating deductions, business owners can reduce their taxable income significantly.
For other key changes, we have put together a quick sheet of key changes that can have a material impact on future tax planning. All of the information provided is for educational use and should not be relied upon as tax advice.
Curious about how the changes affect your tax situation? Give us a call. We would be glad to evaluate both the opportunities and impact of the One Big Beautiful Bill on your long-term financial plan and work with your CPA on how the changes might impact you.
One-Big-Beautiful-Bill-Key-ConsiderationsReferences: https://www.journalofaccountancy.com/news/2025/jun/tax-changes-in-senate-budget-reconciliation-bill/