1/. 🚨Breaking News🚨. The One Big Beautiful Bill (OBBB) Act has just been passed by the House, and is now on its way to the President's desk, where it will be signed into law. With that in mind, it's time to break it down. To read it for yourself:

RT @Glen_NQDC: @CPAPlanner Will be dialing into your webcast, Jeff!. Here’s a tax hack for those who earn over $500K:. The new tax bill qui….

It's been a loooong time since I haven't written the summary article for a major tax bill on the Kitces website. But my friend and colleague @benhenry took this one and absolutely crushed it. His summary of the "One Big Beautiful Bill Act” (OBBBA) is a must-read for any advisor.

61/. If you've found this helpful, please consider retweeting the first post to help me share with others. Thanks!

60/. And, of course, there are certainly areas we haven't covered, but I think we hit most of the big stuff people are going to ask about. All in all, a pretty good day/night's work!

59/. Alright, that's it for tonight. More to come in the coming days, including non-tax impacts to financial planning. Remember, this is just my initial interpretation of what I see. So do your homework and verify for yourself.

58/. 🔸Finally, the OBBB calls for a pilot program, in which the IRS will fund the Trump account of a child born between 2025 and 2028 with a $1k contribution. 🔸If bene dies <18, the $ is taxable right away to the acct bene (or on child's last return if their estate is bene).

57/. 🔸No deduction allowed for contributions to the acct. 🔸The IRA pro-rata rule will apply to Trump accts, but separately from "regular" Traditional IRAs. 🔸Employers will be able to contribute up to $2,500 to the Trump acct of employee's dependents and exclude from income.

56/. 🔸Tax treatment will generally mirror that of an IRA. (Note this is a BIG difference (downside) from the cap gains treatment that was part of some draft legislation!). 🔸In general, the acct must be invested in a US MF or or ETF that meets the rules highlighted below

55/. Here's what you should know about these accounts:. 🔸First contributions to be allowed 1 year after enactment of law. 🔸Contributions only allowed before the acct beneficiary turns 18. 🔸$5k annual contribution limit. 🔸Distributions generally prohibited prior to age 18.

54/. Alright, in what will be our final topic for this evening (I've got to be a somewhat awake, present father tomorrow), let's talk about OBBB's creation of a new tax-favored account. The Trump account. Not that these were called MAGA accts in earlier drafts.

53/. And then there's "Special Depreciation", also known as "Bonus Depreciation. 100% Bonus Depreciation was introduced by TCJA, but has been phasing out in recent years. OBBB permanently reinstates 100% bonus depreciation for qual. assets placed in service 1/20/25 or later.

52/. Onto some big breaks for biz owners. Let's start with a massive expansion to Section 179. 2 HUGE changes here, effective this year (2025)!. 1️⃣Max amount eligible is $2.5MM (⬆ from $1MM). 2️⃣Phaseout begins at $4MM of property (⬆ from $2.5MM). Oh, and it's permanent!

51/. Alright, time for another easy one. Effective next year (2026), the lifetime estate/gift tax exemption will be $15MM per person (indexed for inflation). A few quick notes:. 🔸Still portable, so effectively $30MM per couple. 🔸The jump to $15MM is just over 7% more than

50/. What do I mean by that?. Well, remember how TCJA dramatically ⬆ the exemption amount and income phase outs of that exemption?. Well, for 2026+ OBBB would "reset" the level at which phaseouts begin, back to $1MM for MFJ and $500k for single filers. what they were in 2018.

49/. Let's talk AMT. The good(ish) news for most preparers and taxpayers is that AMT will continue to be a non-issue for MOST people. That said, thanks to a somewhat odd choice in the OBBB, where we're essentially going back to the future, MORE taxpayers will be hit by it.

48/. While not as readily used by taxpayers, as long as we're on the subject of children, let's talk about the Adoption Credit. The OBBB adds some future inflation adjustments, but the bigger news is that, effective for 2025+, it also makes up to $5k of the credit refundable.

47/. To the opposite extreme. children! And more specifically. The Child Tax Credit. Very similar to what we've had, but with the following changes:. 🔸Slight bump to $2,200 per qual. child (⬆ from $2k). 🔸Inflation adjusted!. 🔸Permanent and effective this year (2025)!

46/ . 🔹This deduction is effective for this year (2025) through 2028. 🔹This is the closest OBBB gets to the Trump campaign promise of "no tax on Social Security." This isn't that, but to be fair, w/ it, nearly 90% of seniors' Social Security will be tax-free (⬆ from ~2/3)

45/. 🔹Interesting note here. I'm not 100% sure, but the way I'm reading the text (see below to judge for yourself) the deduction for each PERSON is phased out between $150k - $250. So, $0 of senior deduction at $250k regardless of whether one or both spouses are 65+?🤷‍♂️