By Steven A. Boorstein, CFP® and Aiden Boorstein, Financial Planner | RockCrest Financial
On July 4, 2025, a sweeping new tax law, dubbed by some as the “One Big, Beautiful Bill” was signed into law, and it’s nothing short of historic. At 870 pages, it touches everything from individual tax brackets and charitable deductions to business incentives, estate tax changes, and even education savings.
At RockCrest Financial, we’ve carefully studied this legislation to break down what it means for individuals, families, and business owners and most importantly, how to take advantage of some of them.
Below are some highlights, but please note, there are several tax changes we have not covered in this article and even the changes below may have criteria that need to be met (for example, income levels, job classifications, etc). Please consult a tax professional to see how these new tax law changes apply to your situation.
Tax Cuts Made Permanent
One of the biggest headlines: The individual tax cuts from the 2017 Tax Cuts and Jobs Act (TCJA) are now permanent. This includes:
- Tax brackets from 10% to 37% are locked in.
- Larger standard deductions: $15,750 for singles and $31,500 for married couples.
- Expanded child tax credit: Now $2,200 per child.
New “Senior Bonus Deduction” (2025-2028)
An extra $6,000 for each taxpayer over age 65+ ($6,000 for single filers age 65+ and $12,000 if both taxpayers who are married filing jointly are both 65+(otherwise $6000 if only one is 65+), potentially making Social Security benefits tax-free for 88% of retirees. This deduction begins to reduce for Modified Adjusted Gross Income (MAGI) above $75,000 single filers / $150,000 married filing jointly)
Above-the-Line Deductions Expanded
Even if you don’t itemize, you may now qualify for:
- $1,000 deduction for qualified cash charitable gifts.
- $2,000 deduction for merit-based public charity donations.
- “No Tax On Tips” (2025-2028): New deduction for up to $25,000 in reported tip income, phased out above $150K single/$300K joint.
- “No Tax On Overtime” (2025-2028): New deduction for up to $12,500 (single filers)/$25,000 (married filing jointly) in eligible overtime pay. These are phased out above $150K single/$300K joint.
Auto Loan Interest is Now Deductible
For the first time in decades, auto loan interest is deductible — but only for:
- New vehicles
- Assembled in the U.S.
- Used for personal purposes
Maximum: $10,000 per year
Phases out: Above $100,000 income (single) or $200,000 (married)
SALT Cap Expanded (2025-2029)
High-tax state residents rejoice: The SALT deduction cap rises from $10,000 to $40,000 — through 2029. But a phase-out begins above $500,000 of taxable income and by $600,000 of taxable income, the deduction is reduced back to $10,000. The cap and income threshold will increase annually. So, income planning is critical.
Example: A NJ couple paying $30,000 in SALT taxes can now deduct the full amount (instead of $10,000), saving $6,000+ in taxes, subject to income phase-out limits.
Big Wins for Small Business Owners and Investors
- Qualified Business Income (QBI) Deduction: The 20% pass-through deduction is now permanent.
- Bonus Depreciation: 100% immediate expensing of business assets is back and made permanent.
- R&D Expensing: Domestic research costs can now be fully deducted in the year incurred.
Boosted Accounts for Families
- 529 Plans now cover K–12 and vocational education, not just college.
- HSAs: Higher income limits and contribution caps.
- New MAGA Account (Money Account for Growth and Advancement) aka Trump Account: Parents can contribute $5,000 annually; the government adds $1,000 for newborns. This account is available for children born between 2025 and 2028. Funds grow and are distributed as long-term capital gains.
Opportunity Zones: More Time, More Incentives
The QOZ program gets new life, with tax deferral extended to 2028 and expanded incentives for investing in green energy, rural development, and affordable housing. After 10 years, capital gains within the fund are still tax-free.
Estate Planning Just Got More Powerful
The federal estate and gift tax exemption jumps to $15 million per person ($30 million per couple) in 2026. This preserves the planning window that was set to sunset in 2025.
⚠️But remember: 18 states still impose their own estate/inheritance taxes, some with exemptions as low as $1–2 million.
Final Thoughts: What Should You Do Next?
The “One Big, Beautiful Bill” creates powerful new tools for:
- Retirees looking to cut taxes on Social Security
- Business owners optimizing deductions and cash flow
- Parents and grandparents planning for education
- High earners managing SALT deductions
- Investors eyeing Opportunity Zones or estate tax protection
But navigating these changes takes proactive planning.
That’s where we come in. At RockCrest Financial, we specialize in personalized financial strategies tailored to your goals, family, and future.
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This article is for educational purposes only and should not be considered advice. Please consult a tax professional or financial advisor for applicability to your situation. Accuracy of the tax law changes in this article are believed to be true but may contain errors. Please do your own research or consult a financial planner or tax professional to verify current accuracy of this information.
