Long Story Short One Big Beautiful Bill Act: What High Net Worth Families Need to Know | Ep 4
Jul 11, 2025
A massive new tax law, longer than War and Peace, shakes up financial planning for high net worth families. Key topics include the permanent extension of 2017 tax cuts, increased SALT deduction limits, and new rules for charitable giving. Taxpayers over 65 can benefit from an additional $6,000 deduction, while estate and gift tax exemptions have also risen. The discussion emphasizes the growing importance of annual tax planning to navigate these extensive changes.
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2017 Tax Rates Made Permanent
- The One Big Beautiful Bill permanently extends the 2017 individual income tax brackets, providing planning certainty.
- "Permanent" may still change with future legislation, so caution remains in long-term planning.
Plan Around The Higher SALT Cap
- Revisit asset location and timing of income because the SALT deduction rose to $40,000 but phases out above $500k.
- Plan capital gains, distributions, and portfolio moves to avoid inadvertently losing SALT benefits.
SALT Increase Is Temporary And Phased
- The $40,000 SALT cap is temporary for 2025–2029 and will index at 1% annually.
- The cap fully phases back to $10,000 for incomes above $600,000, so benefits vary by income.
