The session led by nationally renowned CPA Bob Keebler explores the sweeping provisions of the One Big Beautiful Bill Act (OBBBA), a comprehensive legislative overhaul that makes many temporary provisions of the Tax Cuts and Jobs Act (TCJA) permanent while introducing new planning opportunities and limitations. Key areas of reform include:
✅ Individual Tax Provisions
- Permanent Tax Rate Adjustments: Maintains TCJA tax brackets and slightly adjusts thresholds upward starting in 2026.
- Standard Deduction Expansion: Solidifies TCJA’s increases and adds modest permanent boosts.
- Senior Exemption: Introduces a temporary $6,000 deduction for seniors aged 65+, phased out at certain AGI levels.
- Child Tax Credit Expansion: Raises the value to $2,200 and indexes it for inflation.
✅ Small Business & Investment Incentives
- Qualified Business Income (QBI) Deduction: Makes the 20% Section 199A deduction permanent with expanded phase-out thresholds.
- Estate and Gift Tax Exclusion: Increases the Basic Exclusion Amount (BEA) to $15 million beginning in 2026, indexed for inflation.
✅ Deductions & Exclusions
- Mortgage Interest Deduction: Keeps TCJA’s $750,000 cap and reinstates mortgage insurance premium deductibility.
- Charitable Contributions: Reintroduces above-the-line deductions and adjusts floor thresholds.
- Miscellaneous Deductions: Permanently repeals deductions such as investment fees and tax prep costs.
✅ New or Modified Credits and Accounts
- TRUMP Accounts: A new tax-exempt savings vehicle for children under age 8, with federal contributions and tight investment parameters.
- ABLE Account Enhancements: Includes rollover provisions from 529 plans and eligibility for the Savers Credit.
- Adoption, Child & Dependent Care, and Employer Childcare Credits: Substantially expanded with higher caps and enhanced eligibility.
✅ Business & Real Estate Provisions
- Bonus Depreciation: Permanently reinstates 100% bonus depreciation for property placed in service after 1/20/2025.
- Opportunity Zones: Adds a new designation period and enhances rural investments.
- Section 179 Expansion: Increases limits to $2.5 million in expensable property with a $4 million phase-out.
✅ Climate & Energy Credit Rollbacks
- Sunsets Various Clean Energy Credits: Repeals or shortens existing electric vehicle, home energy improvement, and solar incentives ahead of their scheduled sunset dates.
🎯 Learning Objectives for Certified Financial Planners
- Evaluate the Permanent Tax Provisions and Their Strategic Implications
- Analyze how the OBBBA’s changes to tax brackets, standard deductions, and personal exemptions impact long-term income tax projections and client tax planning strategies, particularly for high-income earners and retirees.
- Integrate New and Expanded Savings and Credit Vehicles into Client Plans
- Understand and apply new tools such as TRUMP accounts, expanded QBI deductions, and enhancements to Child and Dependent Care credits to improve tax efficiency and wealth accumulation for families and small business owners.
- Advise on Estate and Retirement Planning Opportunities
- Leverage the permanent increase in estate and gift tax exemptions, ABLE account rollover flexibility, and 529 plan expense expansion to develop integrated legacy, education, and special needs planning strategies that reflect the evolving legislative landscape.