One Big Beautiful Bill Act (OBBBA)

Takeaways from the One Big Beautiful Bill Act (OBBBA)

Enacted on July 4, 2025, the One Big Beautiful Bill Act (OBBBA) introduces substantial revisions to the U.S. tax code—many of which carry meaningful implications for long-term financial planning. Most notably, the Act permanently extends the income tax rates and brackets established under the 2017 Tax Cuts and Jobs Act (TCJA), which were set to expire at the end of 2025—avoiding a 1%–4% increase for most income levels.

OTHER KEY OBBBA PROVISIONS:

ProvisionDetails
Standard Deduction Increase in 2025
  • Single: $15,750
  • Married filing jointly: $31,500

(Indexed for inflation thereafter)

Estate & Gift Exemption – Starting 2026
  • Single: $15 million
  • Married filing jointly: $30 million

(Indexed for inflation thereafter)

SALT (State and Local Tax)
Deduction Limit Expansion from 2025–2029
  • Raised to $40,000 in 2025
  • Increases 1% annually through 2029
  • Reverts to $10,000 in 2030
Additional Federal Deduction for Seniors from 2025–2028
  • Age 65+ single: +$6,000 per year
  • Age 65+ married: +$12,000 per year

(Phases out with income over $75k single / $150k married)

Expanded 529 Uses – Starting 2026
  • Up to $20,000 per beneficiary, per year may be applied to K-12 tuition, tutoring, textbooks, and related costs
  • Educational therapies for students with disabilities including occupational, behavioral, physical, and speech-language therapies

PLANNING NOTE:

These changes carry meaningful planning implications depending on your individual circumstances. To make the most of the upcoming 2025 and 2026 updates, consult with your BHPW financial advisor or tax professional.

Sincerely,

The BHPW Investment Team


Beverly Hills Private Wealth, LLC is a registered investment adviser. This is solely for informational purposes. No advice may be rendered by Beverly Hills Private Wealth, LLC unless a client service agreement is in place. Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance. The economic forecasts set forth in the presentation may not develop as predicted and there can be no guarantee that strategies promoted will be successful. Past performance does not guarantee future results. Investing involves risk, including loss of principal. Consult your financial professional before making any investment decision. Other methods may produce different results, and the results for different periods may vary depending upon market conditions and portfolio composition. This newsletter does not represent an offer to buy or sell securities.