For the last couple of years, we have been trying to prepare ourselves and our clients for any potential changes to the tax law. It can affect a business plan and a family financial plan. It’s a tough assignment with the Tax Cuts and Jobs Act of 2017 that was expiring at the end of this year, barring action by Congress otherwise. Maybe being replaced with something else, maybe reverting to tax law from 9 years ago. But as they say – plan for what you know now and try to accommodate changes coming. No tax law is “permanent” and we are always flexing to changes.
Well, now we have a new “permanent” tax law with provisions we can flex to. Many of the Tax Cuts and Jobs Act (TCJA) of 2017 provisions were made permanent, some of them with a twist or slight modification. And, of course, there are some new provisions altogether. Probably the few that stand out for our Wealth Management clients are the federal estate tax law changes, keeping the current income tax brackets, and possibly the SALT (state and local tax) deduction limitation changes. Below you’ll find a brief summary of the changes made by the One Big Beautiful Bill Act (OBBBA) that was signed on July 4th of this year. This chart is obviously not all-inclusive. The bill is several hundred pages long. While this information is educational in nature, as always, consult with your professional advisors for tax and legal advice.
