Breaking Down The “One Big Beautiful Bill Act”: Impact Of New Laws On Tax Planning

After years of anxiety over the scheduled sunset of the Tax Cuts and Jobs Act (TCJA) at the end of 2025, the widely anticipated legislation extending and replacing TCJA – also known as the "One Big Beautiful Bill Act" (OBBBA) – was signed into law on July 4, 2025.

At its core, OBBBA makes permanent many of the provisions of the original TCJA, including TCJA's tax brackets, increased standard deduction, Section 199A deduction for Qualified Business Income (QBI), and increased Child Tax Credit. All of these receive minor tweaks but remain substantially the same as they were under TCJA. However, the $10,000 limitation on State And Local Tax (SALT) deductions is temporarily increased to $40,000 under the new law. Higher-income households may see this deduction phased back down to the $10,000 limit, and all households will again be subject to the $10,000 SALT cap beginning in 2030.

https://www.kitces.com/blog/obbba-one-big-beautiful-bill-act-tax-planning-salt-cap-senior-deduction-qbi-deduction-tax-cut-and-jobs-act-tcja-amt-trump-accounts/?utm_source=ActiveCampaign&utm_medium=email&utm_content=Breaking%20Down%20The%20%22One%20Big%20Beautiful%20Bill%20Act%22%3A%20Impact%20Of%20New%20Laws%20On%20Tax%20Planning%20%5BNEV%5D&utm_campaign=NEV%20Wednesday%20Email&vgo_ee=kC0%2FJDpJR8YE6KnHsFxvsznQD9gTnV7CNSelpzf9K%2Fs%2FsGvwCyfkHQ%3D%3D%3Acu5H%2FSpPaUCp9yOdNU4L1nAzFz%2Bcm%2FTI