By Patrick Swift & Allyson Mangine | November 2025
As 2025 draws to a close, Amplius Wealth Advisors’ Patrick Swift and Allyson Mangine take a close look at the One Big Beautiful Bill Act (OBBBA) and what it means for taxpayers this year. While many headlines focus on what changed, it’s equally important to understand what didn’t—and how that impacts year-end planning.
Key Takeaways from the OBBBA
1. SALT Deduction Cap Raised to $40,000
The state and local tax deduction cap was previously limited to $10,000. For 2025, it has increased to $40,000. This change can offer a meaningful benefit for taxpayers in high-tax states—though the full deduction begins to phase out for those with AGIs above $500,000.
2. New Senior Deduction for Taxpayers 65+
Taxpayers age 65 or older may now qualify for a new $6,000 deduction—or $12,000 if filing jointly. To qualify, AGI must be under $75,000 (single) or $150,000 (joint). This deduction is in addition to the standard and previously existing senior deductions.
3. Charitable Giving: Consider Timing in 2025
Beginning in 2026, charitable deductions for top tax bracket filers will be capped at the 35% rate rather than the current 37%. Donors considering large gifts—or donor-advised fund contributions—may benefit from accelerating those plans into 2025.
4. Estate and Gift Tax Exemption Increased to $15 Million
The estate and gift tax exemption was set to sunset, but OB-BBA not only preserved it—it raised it. The new exemption is $15 million per person, indexed for inflation. This change opens the door for expanded wealth transfer strategies.
5. Section 179 and Bonus Depreciation Expanded for Business Owners
Business owners who purchase capital equipment can now deduct up to $2.5 million under Section 179 and take advantage of 100% bonus depreciation. This is especially impactful for capital-intensive industries like construction, manufacturing, and logistics.
Why It Matters
Whether you’re planning a charitable gift, considering year-end income strategies, or updating your estate plan, these changes create real opportunities—but only if you act before year-end.
“This year’s tax law changes don’t just affect returns—they create real chances for families to preserve wealth and reduce liability,” said Patrick Swift. “But only if you plan before year-end.”
Frequently Asked Questions: 2025 Tax Law Changes & The One Big Beautiful Bill Act
Q: How does the One Big Beautiful Bill Act affect the SALT deduction cap?
A: The state and local tax (SALT) deduction cap has been raised from $10,000 to $40,000 for 2025 through 2029. However, this benefit begins to phase out for individuals with adjusted gross income (AGI) above $500,000. Amplius Wealth Advisors in Philadelphia can help high-income earners in high-tax states evaluate the impact on their 2025 return.
Q: Is there a new tax break for seniors in 2026?
A: Yes. For the 2026 filing season (your 2025 tax return), a new Enhanced Deduction for Seniors allows taxpayers age 65+ to claim an additional $6,000 deduction (or $12,000 for married couples filing jointly if both spouses qualify). This is a temporary, separate deduction included in the “One, Big, Beautiful Bill” (OBBBA) and is available for tax years 2025 through 2028, in addition to the existing standard deduction amounts.
Philadelphia’s Amplius Wealth Advisors integrates this deduction into retirement income strategies for eligible clients.
Q: What are the changes to charitable giving for high-income earners in 2026?
A: In 2026, the charitable deductions for high earners’ itemized charitable deductions will be capped at a 35% tax benefit rate. Also, a new 0.5% floor on Adjusted Gross Income (AGI) applies; only charitable gifts exceeding 0.5% of AGI are deductible. If you‘d like to know more about how this affects your overall tax strategy, Amplius Wealth Advisors in Philadelphia can answer your questions.
Q:What’s changed in estate and gift tax planning?
A: The estate and gift tax exemption has increased to $15 million per person, indexed for inflation. Amplius Wealth Advisors works with Philadelphia clients to implement multigenerational gifting strategies and trusts that take full advantage of this exemption.