As we move into the last quarter of 2025, it’s not just markets that have given us plenty to think about, but Congress has as well. The recently passed One Big Beautiful Bill Act (OBBBA) introduced the most sweeping set of tax law changes in nearly a decade. With so much new information, the challenge is filtering out the noise and zeroing in on the changes that may be beneficial.

1. What Changed in the Tax Code

OBBBA permanently extends many parts of the 2017 Tax Cuts and Jobs Act (TCJA), including current income tax brackets, the standard deduction, and the 20% Qualified Business Income (QBI) deduction. It also temporarily raises the SALT deduction cap (from $10,000 to $40,000) for many income levels, and introduces a handful of new “below-the-line” deductions, such as:

  • A $6,000 deduction for individuals age 65+
  • Up to $25,000 for tip and overtime income
  • Up to $10,000 of auto loan interest

Other changes include expanded 529 plan uses, an increase in the estate and gift exemption to $15 million per person, and new “Trump accounts” that allow retirement-style savings for children even without earned income.

2. Planning Opportunities

While some changes are permanent, others are only available for a few years. That makes timing especially important. For example:

  • Roth Conversions: With tax brackets locked in, but some deductions temporary, there’s a strategic window for converting pre-tax dollars to Roth. If applicable, speak with your advisor and tax partner about the most effective way to capture the benefit with the increased senior deduction.
  • Charitable Giving: A new floor for charitable deductions of 0.5% of AGI subtracted from total contributions begins in 2026. Consider increasing charitable contributions to a Donor Advised Fund (DAF) this year to avoid the new floor.

Takeaways

OBBBA brings complexity, but also opportunity. By focusing on what’s relevant to you, and resisting the urge to overcomplicate, you can turn this legislation into a meaningful part of your long-term plan.

For those who’d like to take a deeper dive into the new tax law, we encourage you to watch the Tax firm’s recent OBBBA webinars, where our PBMares tax partners walk through key provisions in more detail. You can also explore additional resources from our advisors, including an article, Why Life Insurance Matters for Real Estate Investors,” and a recorded webinar, Avoiding Medicare Mistakes in Retirement. Both offers insights designed to help you stay informed, avoid costly pitfalls, and make more confident decisions about your financial future.

As always, our team is here to walk through how these changes might impact your tax strategy, retirement planning, and estate goals. Contact us today.

The information contained in this article is for informational purposes only, and cannot be relied upon for legal, financial, tax, or accounting advice. Be sure to consult with your financial advisor on this topic as individual situations may vary. Any specific questions you may have can be sent to us by email and we would be happy to assist you.

About the Author:

Anthony DeTrane PBMares Wealth ManagementAnthony DeTrane
Associate Wealth Advisor

Anthony collaborates with the PBMares tax team to integrate strategies into comprehensive wealth and retirement planning, including tax-efficient withdrawal approaches and optimizing asset allocation across investment portfolios.