The Long Term Investor

Year-End Tax Planning After the OBBBA (EP.224)

Oct 1, 2025
Guest
Susan Jones
In this insightful discussion, tax expert Susan Jones from Plancorp dives into year-end tax strategies shaped by the One Big Beautiful Bill Act (OBBBA). She demystifies shifts in charitable deductions and tax implications for high earners, including the new 2% AGI floor. Jones also emphasizes the importance of timing for pre-retirees and business owners in managing income spikes and leveraging benefits like the QBI and bonus depreciation. If you're navigating complex tax waters, her expert insights could be invaluable!
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INSIGHT

Permanent Rates And Estate Exemption

  • The OBBBA made permanent the lower individual rates and the higher estate and gift exemptions that were due to sunset.
  • This removes much of the urgency to accelerate gifts solely to avoid 2026 rate and exemption changes.
ADVICE

Run Projections Before Bunching Gifts

  • Re-run multi-year projections before bunching charitable gifts or funding a DAF under the new rules.
  • Calculate AGI effects and the 2% floor and itemized haircut to confirm the timing is beneficial.
INSIGHT

Charitable Deductions Face New Haircuts

  • Charitable deductions now face a 2% of AGI floor plus a Pease-style haircut for high earners.
  • The effective value of itemized gifts can cap out at the 35% bracket rather than the top rate.
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