On July 4th, Congress passed the One Big Beautiful Bill, making several key parts of the 2017 tax law permanent—and opening the door to a handful of planning opportunities worth discussing. Our team has been taking the last few weeks to review the bill in an effort to find the most applicable new laws for our clients. While it may not result in major tax cuts for most, it does help avoid a large tax hike that was set to kick in next year.

Here are a few ways this new law might impact your plan:

1. Charitable giving strategies: New deduction rules could allow more taxpayers to benefit from charitable gifts—whether or not they itemize.
2. Estate planning updates: The estate and gift exemption has been increased to $15 million per person (indexed to inflation), giving more room to transfer wealth tax-efficiently.
3. Itemized deduction review: With an increased SALT (State and Local Taxes) cap (now $40k for some), it may be time to revisit whether itemizing—or bunching deductions—makes sense.
4. Education planning: 529 plans now allow up to $20,000 per year in K–12 withdrawals (up from $10K), and qualified expenses now include textbooks, testing, tutoring, and credentials for postsecondary training. This now applies to both public and private K-12.
5. Trust income planning: Non-grantor trusts may provide tax efficiency for high earners in light of SALT deduction changes and MAGI thresholds.
6. Business owner planning: The 20% Qualified Business Income (QBI) deduction has been made permanent, offering continued value for eligible entrepreneurs and real estate investors.
7. Trump accounts: Starting in 2026, families with children born between 2025–2028 can open “Trump Accounts”, where the government contributes an initial $1,000, and parents can add up to $5,000 annually for education or first-time home purchases — with tax-deferred growth.
8. New deduction for seniors 65+: A new “senior bonus” deduction of up to $6,000 per person ($12,000 per couple) is now available—even for those who itemize. It phases out at higher income levels but could provide meaningful relief for many retirees.

If you feel like some of these may apply to you or want to chat to dig down deeper, please do let us know. We’ll continue reviewing how these changes affect your personal situation and will bring strategies to the table that fit your goals.

Let us know if you’d like to set up a time to revisit your plan.

 

Please note, changes in tax laws may occur at any time and could have a substantial impact upon each person’s situation. While we are familiar with the tax provisions of the issues presented herein, as financial advisors, we are not qualified to render advice on tax matters. You should discuss tax matters with the appropriate professional.