2
The 2024 election cycle in the first
half of 2025 brought political noise
around many economic issues
including tax law reform. This
created uncertainty for taxpayers
and planners alike.
The anticipated expiration of the Tax Cuts and Jobs Act of 2017 (TCJA),
originally scheduled to occur at the end of 2025, added pressure for
advisors trying to help clients make good tax-planning decisions. There
is long-awaited clarity now that the "One Big Beautiful Bill Act" (OBBBA)
2
was signed on July 4, 2025.
The nearly 900-page act introduces changes that will impact individuals,
estates, businesses, and investors across all wealth levels. Despite its length
and breadth, many tax professionals are of the opinion that while there are
meaningful changes that extend or make permanent laws expiring laws, a
true "tax reform" was not achieved. Rather, permanency is potentially only
as fixed as the next election cycle or presidential administration.
What we know at this time is that the OBBBA, in many ways, is a
continuation of tax laws already in place. Tax experts are still evaluating
how the new laws will be interpreted by the IRS and Treasury.
2
U.S. Congress, "One Big Beautiful Bill Act of 2025," H.R. 1, 199th Cong. (2025). Public Law No. 119-21.
While new wrinkles will give rise to
new opportunities, most taxpayers and
advisors should be acting as they always
have when it comes to tax planning …
be proactive!
