Newsletter
September 2025 Newsletter
OBBBA: provisions made permanent or extended
Ten provisions of the One, Big, Beautiful Bill Act that were made permanent or extended.
- Tax rates: The One, Big, Beautiful Bill Act (OBBBA) made the current individual income-tax rate structure permanent.
- Standard deduction: For tax year 2025, the standard deduction increased to $15,750 for single filers, $23,625 for heads of household, and $31,500 for married couples filing jointly. Inflation-adjusted amounts apply in later years.
- Personal exemptions and the senior deduction: Personal exemptions remain at zero. For 2025 through 2028, eligible individuals age 65 and older may claim an additional $6,000 deduction, subject to modified-adjusted-gross-income phaseouts beginning at $75,000 for single filers and $150,000 for joint filers.
- Qualified Business Income: The Section 199A Qualified Business Income deduction was made permanent and generally remains at 20% of qualified income, subject to its eligibility rules and limitations.
- Estate-tax exemption: The lifetime estate and gift-tax exclusion was increased to $15 million for 2026, with inflation adjustments thereafter.
- Mortgage-interest deduction: The limitation generally tied to the first $750,000 of qualified home-acquisition indebtedness ($375,000 for married filing separately) was made permanent. Home-equity interest remains subject to separate use-of-funds rules.
- Casualty losses: The limitation on personal casualty-loss deductions continues, with relief generally connected to qualifying federally or state-declared disasters under the applicable rules.
- Miscellaneous itemized deductions: The suspension of most miscellaneous itemized deductions was made permanent, while specific items such as eligible educator expenses continue under their own provisions.
- Bonus depreciation: The law restored permanent 100% bonus depreciation for eligible property acquired after January 19, 2025, subject to the property's qualification and placed-in-service requirements.
- Excess business losses: The limitation on excess business losses for noncorporate taxpayers was made permanent. The annual limit is indexed for inflation.
This summary is general information, not legal or tax advice, and may not reflect every exception or later update. Please contact the office before relying on a provision.
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