The One Big Beautiful Bill Act (OBBBA) has introduced some
of the most significant tax and planning changes in years—bringing a mix of
permanent rules, temporary opportunities, and deadlines that directly impact
year-end decisions. As we approach December 31, now is the time to evaluate
which provisions can benefit you, what adjustments should wait, and what
opportunities will disappear if not acted upon this year.
At our firm, we’re helping clients navigate these changes
with clarity so they can make informed, strategic decisions. This is not a year
for generic reminders. OBBBA reshaped the landscape for individuals, families,
and business owners—creating new deductions, expiring incentives, and important
timing considerations. Acting early can create meaningful tax savings and
long-term planning advantages.
Below is our concise overview of the most relevant 2025
year-end planning considerations under OBBBA, tailored for our clients.
1. Understand the Key OBBBA Changes
OBBBA introduced a combination of permanent tax provisions
and short-term incentives. We guide clients through what’s here to stay and
what requires immediate action.
Key highlights include:
Charitable deductions (starting 2026):
• Permanent $1,000 non-itemizer deduction ($2,000 joint).
• Itemizers face a new 0.5% AGI floor and a 35% benefit cap for high-income
households.
→ Consider whether charitable gifts should be accelerated into 2025.
Estate & gift exemption (permanent):
• Starting in 2026: $15M per person, $30M per couple (indexed).
→ High-net-worth clients should begin evaluating gifting strategies now.
Business provisions (permanent):
• 20% QBI deduction is made permanent.
• 100% bonus depreciation restored.
• Domestic R&D expensing reinstated.
• Larger Section 179 limits.
Temporary personal deductions (2025–2028):
• Tip income deduction, overtime deduction, and extra senior deduction.
• Expanded SALT cap up to $40,000 (through 2029).
• New deduction for personal-use vehicle loan interest, up to $10,000.
We provide each client with a tailored OBBBA “action sheet”
so you know which deadlines apply to your situation and what needs attention
before year-end.
2. Cash Flow, Debt, and Tax-Advantaged Accounts
Year-end cash management affects both taxes and financial
flexibility. We help clients:
• Maximize FSAs and dependent care accounts
• Review health insurance deductibles before year-end
• Prepare liquidity for tax payments or upcoming expenses
• Evaluate the new personal-vehicle interest deduction (2025–2028)
For clients considering buying a new personal-use vehicle,
we review eligibility, U.S. final assembly requirements, loan structure, and
timing so the deduction isn’t missed.
3. Clean Energy and Home Upgrade Deadlines
Several energy-related tax credits expire soon, and most
require completion—not just scheduling—before the deadline.
Expiring credits:
• Residential Clean Energy Credit (solar, geothermal, etc.) – ends 12/31/25
• Energy Efficient Home Improvement Credit – ends 12/31/25
• EV charging equipment credit – expires 6/30/26
• EV purchase credits – expired 9/30/25
We help clients verify contractor timelines, permitting, and
documentation to ensure these credits are not lost.
4. Estate, Gifting, and Family Planning
We help clients align their estate plans with the upcoming
permanent exemption increase and ongoing income-tax considerations.
Key year-end opportunities:
• Annual exclusion gifts: $19,000 per person ($38,000 per couple)
• Direct tuition/medical payments
• Strategic 529 funding, including 5-year election
• Roth IRA contributions for working children
• Trust planning (GRATs, SLATs, ILITs) for larger estates
Even with the 2026 exemption increase, income-tax
planning—including basis strategies—remains central to long-term estate
outcomes.
5. Business Owner Opportunities
For business owners, year-end planning under OBBBA is
especially valuable. We work with clients to:
• Review retirement plan contributions (SEP, Solo 401(k), DB
plans)
• Time expenses and revenue for tax efficiency
• Assess entity structure effectiveness
• Evaluate cost segregation opportunities
• Apply new bonus depreciation and enhanced Section 179 limits
• Revisit QBI qualification and phaseouts
• Explore R&D expensing opportunities, including retroactive refund claims
• Assess potential Qualified Small Business Stock (QSBS) benefits
Many of these provisions create immediate savings when
implemented before year-end.
6. Broader Financial Planning Considerations
Year-end is also a natural checkpoint for:
• Reviewing insurance coverage and deductibles
• College planning and financial aid strategy
• Planning for RSUs, stock options, or other compensation events
• Preparing for expected inheritances or windfalls
• Updating beneficiary designations and estate documents
Our team uses a structured year-end checklist and follow-up
process to ensure no opportunities are overlooked and all strategies are
implemented correctly.
We’re Here to Guide You Through Every Step
The OBBBA changes make 2025 a uniquely important year for
proactive planning. Whether you are an individual, a family, or a business
owner, early action can unlock opportunities that disappear on December 31—or
help you prepare for provisions that become permanent in 2026.
If you’d like help evaluating which OBBBA strategies
apply to your situation, we invite you to schedule a year-end planning session
with our team.
We’re here to make sure you enter 2026 confident, prepared,
and positioned for success.
