Signed into law on July 4, 2025, the One Big Beautiful Bill Act brings sweeping and permanent changes to the tax code. Whether you find it beautiful or not, the law is here, and it’s here to stay, at least until Congress says otherwise.
At Wealth.com, our job is to help you cut through the noise and understand what matters to you, your clients, and their long-term planning. Below is a breakdown of the key provisions, ranked by relevance to financial advisors.
1. Estate Tax Exemption Increased
Effective 2026:
- $15 million per person exemption (indexed for inflation), or $30 million per couple with portability.
- Modestly higher than the current $13.99M exemption.
Why it matters:
- Ultra-HNW families now have added breathing room.
- We don’t know where the political landscape will be in future years, so advisors should revisit gifting, trust strategies, and dynasty planning to take advantage of the unprecedentedly high exemption level
2. SALT Deduction Cap Increased but Be Careful
The SALT deduction cap rises to $40,000, but phases out between $500k and $600k AGI. It sunsets after 2029.
Why it matters:
- For high-income clients in high-tax states, $500k–$600k AGI is a major planning danger zone.
- Marriage penalty remains (thresholds not doubled), so filing strategies may need a fresh look.
3. Ordinary Income Tax Brackets Made Permanent
The current seven-bracket system (10%, 12%, 22%, 24%, 32%, 35%, 37%) is now permanent.
Why it matters:
- Offers long-term visibility for Roth conversion strategies, bracket management, and retirement distributions.
4. Bonus Depreciation & Section 179 Expansion
Bonus Depreciation: Permanently reinstated at 100% for assets placed in service after Jan 20, 2025.
Section 179:
- Max deduction: $2.5M
- Phaseout starts at $4M
Why it matters:
- Business-owner clients have powerful new tools for capital expenditure and tax strategy.
- Time to revisit cost segregation studies and acquisition planning.
5. QBI Deduction Extended But Still Mostly Off-Limits to Advisors
The deduction is now permanent, and the income phaseout range is modestly expanded, but most white-collar professionals (advisors, CPAs, attorneys) remain excluded.
Why it matters:
Most advisors still won’t qualify, but many business-owner clients will. This can be a prompt to revisit income levels, entity structure, and whether clients are leaving deductions on the table.
6. Trump Accounts: New Child-Focused Savings Vehicle
- $5k annual contributions allowed before child turns 18
- IRA-like tax treatment (no upfront deduction)
- Employers can contribute $2,500 tax-free for dependents
- IRS pilot program contributes $1,000 for 2025–2028 births
Why it matters:
- A brand-new vehicle for education and long-term child savings strategies
- Strong planning opportunity for multigenerational wealth discussions
7. Standard Deduction + New Senior Deduction
New standard deduction (2025):
- MFJ: $31,500
- Single: $15,750
- HOH: $23,625
New Senior Deduction: $6,000 per taxpayer age 65+, phases out above $150k MFJ / $75k others, expires 2028
Why it matters:
- Seniors near the phaseout cliff need modeling
- Great lead-in for broader retirement income planning
8. Child & Adoption Credits Expanded
- Child Tax Credit: $2,200 per child, inflation-adjusted, and permanent
- Adoption Credit: Now partially refundable (up to $5k) starting 2025
9. Car Loan Interest Deduction (2025–2028)
- Deduct up to $10,000 annually for new car loans only (no leases & other stipulations)
- Phases out above $200k MAGI MFJ, $100k others
10. Student Loan Repayment: Employer Benefit Made Permanent
Employers may contribute up to $5,250 annually toward employee student loans tax-free
Why it matters:
- Business-owner clients can enhance benefit offerings
- Great way to attract and retain younger talent
11. 529 Plan Qualified Expenses Expanded
529 plans may now be used for a broader set of K‑12 and homeschool-related expenses, including:
- Curriculum and instructional materials
- Books or digital educational content
- Tutoring and outside‑home educational classes
- Testing fees
- Dual enrollment tuition
- Educational therapies and adaptive learning tools
Why it matters:
529 accounts have become more versatile – they’re not just for college. This opens up powerful opportunities for families funding private school, homeschooling, supplemental learning, or special education. Smart planning here can help manage overfunded balances and support long‑term multigenerational strategies.
What’s Next:
Hear from Sr. Corporate Counsel, Dave Haughton, JD, CPWA®
We hosted a special webinar session, “The One Big Beautiful Bill: What Every Advisor Needs to Know,” led by Wealth.com’s Sr. Corporate Counsel, Dave Haughton, JD, CPWA®.
Send Key Takeaways to Your Clients
Looking for a resource to send directly to clients and prospects as a helpful resource? We have a client-friendly downloadable PDF with all the relevant estate and tax planning highlights from the Big Beautiful Bill.
Download the Client Takeaways PDF Here
The tax code may have changed, but the core of great advising hasn’t. In a sea of new rules and revised deductions, your role as a trusted guide is more important than ever. The advisors who lean in now, who anticipate, educate, and elevate, will be the ones who grow deeper client loyalty and lasting impact. At Wealth.com, we’re equipping you with the tools to turn complexity into confidence, and deliver lasting legacies for your clients.
