OBBBA Tax Reform Reshapes Wealth Strategies for 2025-2026
The One Big Beautiful Bill Act (OBBBA) has fundamentally altered the U.S. tax landscape, introducing new paradigms for wealth preservation and deduction maximization. Effective July 4, 2025, the legislation extends provisions of the 2017 Tax Cuts and Jobs Act while adding specialized labor deductions, consumption-based incentives, and complex limitations for high-net-worth individuals.
Taxpayers must now navigate over 60 inflation-adjusted IRS provisions, balancing 'above-the-line' adjustments and 'below-the-line' itemized deductions. Key strategies include leveraging the permanent $32,200 standard deduction for joint filers, claiming new senior deductions up to $12,000 for couples, and optimizing the $40,000 SALT cap opportunity.