What the One Big Beautiful Bill Means For You

New Tax Law Changes for Individuals, Small Businesses, and Estate Planning

By Andrew Bosshard, Business Law and Estate Planning Attorney

The One Big Beautiful Bill Act, signed into law on July 4, 2025, delivers significant, permanent changes to federal tax and planning rules. Whether you’re an individual taxpayer, small business owner, or managing a family estate, here’s what matters now.

For Individual Taxpayers

• Tax Cuts Are Permanent: The income tax rate structure from the 2017 tax law now remains permanent—no expiration date.
• Larger Standard Deduction: The standard deduction has been increased—to $15,750 for single filers and $31,500 for married couples—and will keep growing with inflation.
• New Deductions Introduced: For tax years 2025–2028, workers can deduct up to $25,000 in tip income and $12,500 in overtime pay, as well as up to $10,000 in interest on U.S-assembled car loans.
• Child Tax Credit Increased: The maximum amount per child is now $2,200, with future inflation updates.
• Expanded SALT Deduction Cap: The $10,000 cap on state and local tax deductions has been raised to $40,000 for five years.

For Small Business Owners

• 20% Pass-Through Deduction Made Permanent: The deduction for owner‑operated businesses like LLCs and S‑corps is now a permanent tax provision.
• Bonus Depreciation Restored to 100%: Purchases of qualifying equipment and software can now be fully expensed in the year of purchase.
• Expanded Startup Stock Tax Breaks: Investors in qualified small business stock can exclude up to $15 million in gains over time, with exemptions increasing the longer the asset is held.

For Estate Planning

• Estate Tax Exemption Permanently Raised: Starting in 2026, the federal estate and gift tax exemption is rising to $15 million per person, or $30 million per married couple—indexed for inflation after that.
• Step-Up in Basis Remains Intact: Heirs will still benefit from the stepped-up basis rule on inherited property.
• Charitable Giving Extended to Non‑Itemizers: A new deduction allows up to $1,000 per year for individual filers (or $2,000 for couples) who don’t itemize.

What You Should Do Now

• Individuals: Adjust your payroll withholding and take advantage of the new deductions.
• Business Owners: Plan major equipment purchases now to maximize bonus depreciation; explore beneficial stock options in startups.
• High‑Net‑Worth Families: Talk with your estate planning attorney about the new exemption—and update your plans if your estate value is $15 million or more.

At Bosshard Parke in La Crosse and Sparta, we help residents and business owners in western Wisconsin make informed decisions with the One Big Beautiful Bill tax changes. Whether revising your tax strategy, preparing for future healthcare needs, or updating your legacy plan, we’re here to help.

Disclaimer: This blog summarises provisions from the One Big Beautiful Bill Act passed July 4, 2025. It is not legal or tax advice. For personalized planning guidance, please consult an attorney or tax professional at Bosshard Parke.