What the “Big Beautiful Bill” Means for You

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What the “Big Beautiful Bill” Means for You?
Key Tax Changes to Know Now

On July 4th, President Trump signed into law H.R. 1 – the Big Beautiful Bill Act (“BBB”), a landmark piece of tax legislation that introduces significant changes to the Internal Revenue Code. Building upon—and in many cases, making permanent—the provisions introduced under the 2017 Tax Cuts and Jobs Act (TCJA), the BBB is set to impact individuals, families, and businesses of all sizes.

At Akram Assurance, Advisory & Tax, we’ve reviewed the sweeping reforms and are breaking down the key provisions most likely to affect our clients. Here's what you need to know—and how to plan ahead.

Key Tax Provisions Made Permanent or Extended

✔️Tax Rates & Standard Deduction

Individual Tax Rates: Current income tax rates are made permanent.

Standard Deduction: Increased and now permanent at:

$15,750 for single filers
$23,625 for heads of household
$31,500 for married filing jointly

(Indexed for inflation, effective after 12/31/2024)

✔️ Personal Exemptions: Permanently eliminated except for taxpayers over age 65, who may claim a $6,000 deduction (with income phaseouts starting at $75,000 single / $150,000 married). This senior exemption sunsets after 2028.

✔️ Qualified Business Income (QBI) Deduction: The 20% QBI deduction under Section 199A is now permanent.

✔️ Estate Tax Exemption: Increased to $15 million, effective for gifts made after December 31, 2025. Indexed for inflation from 2026 onward.

✔️ Mortgage Interest & Casualty Losses: Interest remains deductible on the first $750,000 of acquisition debt. Casualty losses are now deductible for State-declared disasters, not just Federal ones.

✔️ Bonus Depreciation: 100% bonus depreciation is permanent for qualified property acquired after January 19, 2025.

✔️ Other Permanent Changes: Disallowance of miscellaneous itemized deductions (except educator expenses)

✔️ New Market Tax Credit made permanent: Excess Business Loss limitation ($250,000 single / $500,000 married) is now permanent

✔️ Qualified Opportunity Zones (QOZ):Extends QOZs with 10-year rolling designations starting 1/1/2027, updates the definition of low-income communities, introduces staggered holding periods for the 10% basis step-up, and creates rural funds eligible for a 30% step-up. Applies from 1/1/2027 to 12/31/2033.

Modified Provisions to Watch

SALT Deduction Temporarily Expanded

SALT cap increased from $10,000 to $40,000 through 2029
Phased down for income over $500,000, but not below $10,000

R&D Expense Deductions Restored

Immediate deduction allowed for domestic R&D expenditures after 2024
Small businesses (receipts ≤ $31M) can amend past returns and claim refunds

Business Interest Limitation Relaxed

Adjusted taxable income now excludes depreciation and amortization when applying the 30% interest deduction cap—favorable for capital-intensive businesses

Section 179 Expensing Enhanced

Increased to $2.5M, with phaseout beginning at $4.0M (both indexed for inflation)

QSBS (Qualified Small Business Stock) Incentives Expanded

New partial exclusions: 50% for 3-year holding, 75% for 4-year, 100% for 5-year
Gain exclusion cap raised to $15 million
Gross asset test threshold increased to $75 million

New Provisions Introduced

No Tax on Tips: Deduction of up to $25,000 for tipped employees (phases out at $150K/$300K MAGI)

No Tax on Overtime: Deduction of up to $12,500 ($25,000 married) for qualified overtime compensation

Qualified Production Property Bonus Depreciation

100% expensing for qualified property used in U.S.-based production
Construction must begin between Jan. 19, 2025, and Dec. 31, 2028; property in service by Jan. 1, 2031

💡 What Should You Do Next

The BBB introduces a host of opportunities as well as planning challenges. If you’re a business owner, investor or high-net-worth individual, the changes could affect everything from your tax liability to your estate plan.

Akram’s Take:

Small businesses should revisit past R&D claims and consider amended returns
Real estate investors may benefit from permanent bonus depreciation rules
Families should update estate plans to reflect the $15M exemption
High earners may want to front-load SALT payments before the cap changes expire in 2029

✅ Let’s Plan Proactively

The BBB is already reshaping the tax landscape—and the team at Akram Assurance Advisory & Tax is here to help you navigate it. Our advisors are closely tracking IRS guidance and implementation updates. We’re ready to help you assess how the changes impact your financial picture and identify strategic planning opportunities.