The “Big, Beautiful Bill” Just Passed – What Smart Families and Business Owners Should Do Now

By Bronson Feuer, Tax & Planning Strategist at Vance Wealth

The most sweeping tax legislation since the Tax Cuts and Jobs Act is now law—and it’s already reshaping how individuals and business owners should think about deductions, income, and long-term planning.

Nicknamed the “Big, Beautiful Bill,” this new law introduces over 100 tax code changes. Some are effective immediately. Others will take effect in 2025 and 2026. All of them matter if you’re serious about aligning your financial decisions with long-term savings.

At Vance Wealth, we don’t just strive to help you save money on taxes this year—we aim to help you design a lifetime strategy that maximizes what you keep, year after year.

“What matters most isn’t just what changed in the law—it’s what you do with it now. These changes create both risk and opportunity, and we’re here to turn them into a strategic edge.”
— Bronson Feuer, Tax & Planning Strategist

Key Provisions in the “Big, Beautiful Bill”

SALT Deduction Cap Increased to $40,000

For taxpayers in high-income states like California and New York, the SALT (State and Local Tax) deduction cap increased from $10,000 to $40,000. However, this benefit phases out at $500,000 of AGI and disappears entirely at $600,000.

Why it matters: More clients can now itemize with just property and income taxes—without needing excessive mortgage interest or medical expenses.

New $6,000 Deduction for Retirees Over Age 65

Taxpayers over 65 may now claim an additional $6,000 deduction, phased out above $150,000 AGI (married filing jointly).

Why it matters: When paired with Roth IRA strategies, retirees can reduce AGI and preserve eligibility for this deduction—adding tax efficiency in retirement.

Itemized Deduction Threshold Adjustments

The standard deduction remains high (indexed for inflation), but a new 0.5% AGI floor on charitable deductions raises the threshold for itemizing. In addition, itemized deductions for those in the top 37% bracket will be capped at 35% benefit.

Why it matters: High earners will need to plan giving more precisely—especially if relying on itemization.

Above-the-Line Charitable Deduction Returns

Up to $1,000 (single) or $2,000 (married) in charitable contributions can now be deducted above the line—even if you don’t itemize.

Why it matters: This is a win for everyday generosity and makes small gifts more tax efficient again.

Business Owners: Deductions & Depreciation Restored

• 100% Bonus Depreciation has been reinstated (after years of phase-out), allowing full expensing of qualified assets immediately.
• Section 179 deduction limits increased.
• Section 199A (QBI) deduction is now permanent, with expanded phaseout thresholds for SSTBs (Specified Service Trade or Businesses).
• Section 179 cannot create a business loss; bonus depreciation can.

Why it matters: Now’s the time to revisit asset purchases, depreciation strategies, and entity structure to optimize deductions before year-end.

Auto Loan Interest & “Trump Accounts” Introduced

• A new auto loan interest deduction is available, limited to vehicles assembled in the U.S. with income phaseouts.
• “Trump Accounts” were created for those born between 2025–2028, pre-funded with $1,000 and capped at $5,000/year in contributions. These operate similarly to 529s or Roth IRAs with long-term capital gains treatment on qualified withdrawals.

Why it matters: While these may not apply to most clients directly, they could impact estate or educational planning for children and grandchildren.

Expiring Credits: Act Fast

• Residential solar credits and the $7,500 EV credit are set to expire at the end of 2025.
• Estate tax exemption remains elevated, with inflation indexing—avoiding the previously expected drop.

Why it matters: This is a limited-time window for high-income earners to capture energy and estate benefits.

Other Notable Updates

• Child tax credit increased to $2,200, with phaseouts still in place.
• Tip income deduction of $25,000 and overtime pay deduction of $12,500/$25,000 (single/married), both with income limits.
• New $400 minimum deduction on $1,000 of qualified business income.

Check the Dates

Each provision has its own effective date—some as early as several months from now, others occurring later in 2026. Planning without attention to these timelines could lead to missed opportunities.

At Vance Wealth, we’re building these milestones into your year-round strategy—not just your April filing.

What to Do Next

John Vance, Founder of Vance Wealth, will walk through the full impact of the Big, Beautiful Bill—along with key market and economic insights—in our Mid-Year Market Update on July 31st.

Subscribe to our YouTube channel to be the first to watch when it goes live.

At Vance Wealth, we’re by your side to help make difficult decisions, celebrate life’s joys, and be a trusted partner every moment in between.

Let’s make sure your financial plan reflects the opportunity—not just the obligation—of today’s tax law.

Disclosures:
This material is provided for informational and educational purposes only and should not be construed as individual tax, legal, or investment advice. The information contained herein is based on current tax laws, which are subject to change at any time. Vance Wealth, LLC does not provide legal advice, and nothing contained herein should be construed as such. You should consult your tax advisor, legal counsel, or financial professional regarding your specific situation. Vance Wealth, LLC is an SEC-registered investment adviser. Registration does not imply a certain level of skill or training. Additional information, including our Form ADV Part 2A and Form CRS, is available at www.vancewealth.com.