Goals-based planning
Apr 14, 2025
Understanding the new tax law
What’s been enacted—and our insights into what that may mean for you.
The One Big Beautiful Bill Act (OBBBA) covers a wide range of tax and economic policies. Here’s what’s included in the law, how it may affect your family, and steps you might take when its provisions become effective.
Washington Watch
The new law makes permanent many provisions of the 2017 Tax Cuts and Jobs Act (TCJA) that were scheduled to expire at the end of 2025. Here's a summary of some key provisions of the new law to help guide your planning decisions.
The latest on the tax landscape
The OBBBA includes tax benefits for individuals and business owners and spending offsets from cuts to Medicaid and renewable energy tax credits. According to the Congressional Budget Office, the OBBBA would increase the federal deficit by $3.4 trillion over 10 years compared to the current law, not including interest.
Our View:
- Donate to Charity Now: Consider front-loading your charitable contributions in 2025 before new limitations take effect.
- Review Business Entities: You may be able to benefit from higher thresholds and exclusions for some owners of qualified small business stock, more quickly deducting certain business expenses, and the new rules around deducting state and local taxes.
- SALT Check: The state and local tax (SALT) deduction cap is temporarily increased from $10,000 to $40,000 through 2029, with a phase-down for most households that make more than $500,000 (half those amounts for married couples filing separately).
- Pass on Wealth to Family: With reduced uncertainty around estate and gift taxes, you should think about transferring wealth to future generations.
- This is complex and we can help: Clients should consult with their J.P. Morgan team and tax advisor to assess the new law’s potential impact on them, their family and their businesses.
What’s in the new law?
Deep Dive: What’s been enacted
Want to know how the tax-related provisions of the OBBBA may impact your financial plans? Reach out to your advisor to get our summary of the new tax law.
Our insights can help navigate a changing landscape
Volatility is inherent in investing and planning, and the proposals of a new administration can add to the noise and steal focus. To help you navigate this environment most efficiently, we’ve curated a set of strategic insights across wealth planning.
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Meet the J.P. Morgan Private Advisory team behind our insights and personalized advice
Important Information
JPMorgan Chase & Co. and its affiliates and/or subsidiaries do not practice law, and do not give tax, accounting or legal advice, including estate planning advice. The tax-related material contained herein has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any financial transaction. We will, however, be pleased to consult with you and your legal and tax advisors as you move forward with your own planning.
