📜The One Big Beautiful Bill Is Law: What It Means for Executives and Owners

☕ Good morning SenseMakers!

The One Big Beautiful Bill is now law. For executives and business owners, this is the biggest tax shift in years, and it carries permanent changes as well as temporary windows that can shape your wealth strategy. Let’s break it down.

8 Fast Takeaways

📉 Permanent Extension of 2017 Tax Cuts
The lower brackets from the 2017 Tax Cuts and Jobs Act are here to stay. The top marginal rate stays locked at 37 percent instead of jumping to 39.6 percent in 2026. 

For a W2 executive earning 800K, that is a savings of roughly 16K a year, or 160K over a decade.

💼 QBI Deduction Enhanced
Pass through business owners win big. The Qualified Business Income deduction is permanent, and starting in 2026 it rises from 20 percent to 23 percent with wider phase in thresholds. 

That makes entity structure planning more important than ever.

🏛️ Estate Exemption Expansion
Beginning in 2026, the estate tax exemption increases to 15M per individual and 30M per couple, indexed for inflation. 

High net worth families now have a larger window to transfer and shield assets for future generations.

💸 SALT Deduction Boost
The state and local tax deduction cap rises from 10K to 40K through 2029. The benefit phases out once income passes 500K. 

Timing your property and income tax payments strategically could free up tens of thousands in deductions.

🛠️ Full Expensing for Businesses
Bonus depreciation returns at 100 percent and Section 179 limits jump to 2.5M. Major business purchases can now be fully deducted upfront, creating real cash flow leverage.

👶 Trump Accounts for Newborns
Each child born between 2024 and 2028 receives a federal 1K deposit at birth, with parents able to contribute up to 5K a year. 

These accounts grow tax free and can be used for education, a first home, or retirement.

📊 QSBS Enhancements
Investors in qualified small business stock gain higher exclusion percentages and a higher lifetime cap. 

Founders and angel investors now have more powerful tools for structuring ownership and planning exits.

👵 Extra Deduction for Seniors
An additional 6K standard deduction applies through 2028 for those age 65 and older. This matters if you are supporting parents or coordinating multigenerational planning.

Why It Matters

For high earners, the permanence of lower tax rates and the expansion of key deductions offer clarity and confidence. 

Estate planning strategies that once faced a 2026 sunset now have a longer runway. Business owners can accelerate purchases, restructure entities, and protect more income. 

At the same time, several provisions are temporary, and missing the window could cost six figures in lost opportunities.

What To Do Now

1. Model your 2025 versus 2026 income scenarios including deferred comp and equity awards.
   

2. Reevaluate your entity structure to maximize the QBI deduction.
   

3. Update estate plans, trusts, and gifting strategies before the 2026 exemption changes.
   

4. Time large capital investments to maximize expensing and depreciation.
   

5. Coordinate with your state tax planner since conformity rules differ.

🎥 Want the Deep Dive?
Watch my full breakdown on YouTube here: 

The law is big, but your real advantage comes from planning. With the right strategy, you can lock in savings, grow your wealth, and secure your legacy with confidence.

As always, I hope this helps you to Prioritize Your Version of a Rich Life.

Until next week!

This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.

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