InsightsCongress has officially passed a sweeping new tax bill—nicknamed the “One Big Beautiful Bill”—that could shape the future of tax planning for individuals, families, and investors for years to come. Signed into law on July 4, 2025, the legislation aims to lock in many provisions from the 2017 Tax Cuts and Jobs Act, while introducing new opportunities and limitations.
While some changes are straightforward, others include complex phaseouts, sunset dates, and income-based limitations, making professional guidance more crucial than ever.
Key Tax Changes for Individuals, Families, and Investors
- Federal income tax brackets (10%–37%) remain in place, with annual inflation adjustments.
- The standard deduction increases to $15,750 (single) and $31,500 (joint), while new tax deductions are introduced for seniors, charitable donations, and car loan interest on U.S.-assembled vehicles.
- The State and Local Tax (SALT) deduction cap rises to $40,000 in 2025, creating new tax planning opportunities for high-income earners.
- The lifetime estate tax exemption increases to $15 million per person, important for wealth transfer, legacy, and estate planning.
- Real estate investors benefit from the extension of bonus depreciation, while business owners retain access to the Qualified Business Income (QBI) 20% deduction.
How the 2025 Tax Reform Impacts Your Wealth Strategy
While many of the TCJA’s popular tax cuts are here to stay, income thresholds, phaseouts, and expiration dates complicate the picture. High earners and investors may see both benefits and limits depending on their income, estate size, or investment strategy.
Download the PDF for a detailed look at what’s included in the bill and how it might affect your financial strategy.
Have questions? This bill includes first-of-its-kind provisions and specific eligibility requirements. Talk to your KAR wealth advisor to explore how these changes may impact your unique financial plan.
This information is being provided by Kayne Anderson Rudnick Investment Management, LLC (“KAR”) for illustrative purposes only. Information in this article is not intended by KAR to be interpreted as investment advice, a recommendation or solicitation to purchase securities, or a recommendation of a particular course of action and has not been updated since the date listed on the correspondence, and KAR does not undertake to update the information presented. This information is based on KAR’s opinions at the time of publication of this material and are subject to change based on market activity. There is no guarantee that any forecasts made will come to pass. KAR makes no warranty as to the accuracy or reliability of the information contained herein. The information provided here should not be considered legal or tax advice and all investors should consult their legal and/or tax professional about the specifics of their own legal and tax situation to determine any proper course of action for them. KAR does not provide legal or tax advice and nothing herein should be construed as legal or tax advice, and information presented here may not be true or applicable for all legal and income tax situations. Tax laws can and frequently do change, and KAR does not undertake to update this should any changes occur. Past performance is no guarantee of future results.
