2025 Year-End Planning: What the One Big Beautiful Bill Act Means for You

The One Big Beautiful Bill Act (OBBBA) has introduced some of the most significant tax and financial planning changes in years—bringing a mix of permanent rules, temporary opportunities, and deadlines that directly impact your year-end decisions. As December 31 approaches, now is the time to understand which provisions can benefit you, which strategies can wait, and which opportunities disappear if not acted upon this year.

At our firm, we’re helping clients navigate these changes with clarity so they can make informed, strategic decisions. This is not a year for generic reminders. OBBBA reshaped the landscape for individuals, families, and business owners—creating new deductions, expiring incentives, and critical timing considerations. Acting early can create meaningful tax savings and long-term planning advantages.

Below is our streamlined overview of the most relevant 2025 year-end planning considerations under OBBBA.

1. Understand the Key OBBBA Changes

OBBBA brings both permanent changes and short-term incentives. Our team helps clients distinguish what’s here to stay and what requires immediate action.

Key Highlights

Charitable Deductions (Beginning 2026)

• New permanent $1,000 non-itemizer deduction ($2,000 joint)

• New 0.5% AGI floor for itemizers and a 35% benefit cap for top earners→ Some clients may want to accelerate charitable gifts into 2025.

Estate & Gift Tax Exemption (Permanent)

• Starting 2026: $15M per person, $30M per couple (indexed)→ High-net-worth clients should begin evaluating gifting strategies now.

Business Provisions (Permanent)

• 20% QBI deduction made permanent

• 100% bonus depreciation restored

• Domestic R&D expensing reinstated

• Increased Section 179 expensing limits

Temporary Personal Deductions (2025–2028)

• New deductions for tip income, overtime, and senior taxpayers

• Expanded SALT deduction cap up to $40,000 (through 2029)

• Up to $10,000 deduction for personal-use vehicle loan interest

Every client receives a tailored OBBBA “action sheet” identifying which deadlines apply to their specific circumstances.

2. Cash Flow, Debt, and Tax-Advantaged Accounts

Year-end cash flow decisions affect both taxes and financial flexibility. We assist clients with:

• Maximizing FSA and dependent care account usage

• Reviewing health insurance deductibles before year-end

• Ensuring sufficient liquidity for tax payments

• Evaluating the new personal-vehicle loan interest deduction (2025–2028)

For clients considering a new car purchase, we confirm eligibility, U.S. final assembly requirements, loan structure, and timing to ensure the deduction isn’t missed.

3. Clean Energy and Home Upgrade Deadlines

Several energy-related credits are expiring soon, and most require projects to be completed before the deadline—not just contracted.

Expiring Credits

• Residential Clean Energy Credit (solar, geothermal, etc.) – ends 12/31/25

• Energy Efficient Home Improvement Credit – ends 12/31/25

• EV charging equipment credit – expires 6/30/26

• EV purchase credits – expired 9/30/25

We help clients verify contractor timelines, permitting, and documentation to ensure these incentives are not lost.

4. Estate, Gifting, and Family Planning

We help clients align their estate strategies with the upcoming permanent exemption increase and long-term income-tax considerations.

Key Year-End Opportunities

• Annual exclusion gifts: $19,000 per person ($38,000 per couple)

• Direct tuition and medical payments

• Strategic 529 funding, including the 5-year gift election

• Roth IRA contributions for working children

• Trust strategies (GRATs, SLATs, ILITs) for larger estates

Even with the 2026 exemption increase, income-tax planning—especially basis management—remains essential.

5. Business Owner Opportunities

For business owners, year-end planning under OBBBA offers significant tax-saving potential. We work with clients to:

• Review retirement plan contributions (SEP, Solo 401(k), Defined Benefit Plans)

• Time revenue and expenses effectively

• Reassess entity structure

• Evaluate cost segregation studies

• Utilize bonus depreciation and updated Section 179 limits

• Confirm QBI eligibility and monitor phaseouts

• Explore R&D expensing opportunities, including retroactive claims

• Review potential Qualified Small Business Stock (QSBS) benefits

Many of these strategies must be implemented before December 31 to produce the greatest benefit.

6. Broader Financial Planning Considerations

Year-end is also an opportunity to review the bigger picture:

• Insurance coverage and deductibles

• College planning and financial aid considerations

• RSU vesting, stock option exercise planning

• Inheritance expectations and windfall preparation

• Beneficiary designations and estate document updates

We use a standardized year-end checklist and follow-up system to ensure nothing is overlooked.

We’re Here to Guide You Through Every Step

The OBBBA changes make 2025 a uniquely important year for proactive planning. Whether you’re an individual, a family, or a business owner, early action can unlock opportunities that disappear on December 31—or help you prepare for provisions that become permanent in 2026.

If you’d like help evaluating which OBBBA strategies apply to your situation, we invite you to schedule a year-end planning session with our team.

We’re here to help you enter 2026 confident, prepared, and positioned for long-term success.