Douglas Charney: Understanding Permanent Estate And Gift Tax Rules

Calculating tax benefits

Key Takeaways

  • The One Big Beautiful Bill Act (OBBBA), enacted on July 4, 2025, permanently extends key provisions of the Tax Cuts and Jobs Act.
  • The federal estate and gift tax exemption remains high and will rise to $15 million per person starting January 1, 2026, with no sunset.
  • The generation-skipping transfer tax exemption is aligned with the estate and gift tax exemption, simplifying multigenerational planning.
  • Top marginal income tax rates and capital gains tax structures from the TCJA are now permanent.
  • The law introduces new planning considerations, including enhanced standard deductions, the repeal of the personal exemption, and the new “Trump Account.”
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What the “One Big Beautiful Bill Act” Means for Small Businesses

Small business owner

Key Takeaways

  • The One Big Beautiful Bill Act (OBBBA) introduces major tax breaks for small businesses, including instant write-offs and new deductions.
  • Businesses can now deduct 100% of qualified equipment, software, and R&D expenses, improving cash flow and reducing taxes.
  • The Qualified Business Income (QBI) 20% tax deduction is now permanent, allowing small business owners to keep more profits.
  • Estate and gift tax exemptions increase to $15 million per person, simplifying business succession planning.
  • New deductions for tips and overtime income help employees and self-employed workers reduce taxable income.
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