The OBBBA Act: 4 Key Provisions That May Affect You

Patrick Cote |

Hello Friends,

We hope you had a wonderful summer with family and friends! As we look ahead to fall, we want to highlight an important development: the One Big Beautiful Bill Act (OBBBA), signed into law on July 4th.

This sweeping legislation includes a wide range of tax provisions impacting both individuals and businesses. In this month’s newsletter, we’ll preview a few of the most significant changes. Over the coming months, we’ll dive deeper into each of these topics and explore what they could mean for you.

 

4 Key Provisions to Know:

1. Standard Deduction
Good news if you typically claim the standard deduction: the nearly doubled deduction is now permanent, starting in 2025.

  • Single & Married Filing Separately: $15,750 (indexed)
  • Head of Household: $23,625 (indexed)
  • Married Filing Jointly: $31,500 (indexed)

2. Estate & Gift Tax Exemption
The OBBBA makes permanent the higher federal lifetime gift, estate, and generation-skipping transfer tax exemptions:

  • $15 million per person
  • $30 million for married couples (indexed for inflation starting in 2026)

3. SALT Deduction Cap
The cap on state and local tax (SALT) deductions is raised to $40,000 per household, phased out for taxpayers with modified adjusted gross income (MAGI) above $500,000. In 2030, the cap reverts to $10,000.

4. Qualified Business Income (QBI) Deduction
The 20% deduction for qualified business income is now permanent, providing continued relief for self-employed individuals and small business owners.

What’s Next
We’ll unpack each of these changes in more detail this fall. For now, keep these provisions in mind as you think about year-end planning.

If you’d like to discuss how these updates may affect your situation, please reach out—we’re here to help.