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2025 Big Beautiful Bill New Provisions

The Big Beautiful Bill Explained: Key Tax Provisions for Investors and Individuals

President Trump’s proposed “One Big, Beautiful Bill Act” — commonly dubbed the Big Beautiful Bill — is a sweeping 1,116-page legislative proposal that seeks to extend, expand, and permanently codify many elements of the 2017 Tax Cuts and Jobs Act. While still a proposal, this bill has stirred significant attention in Washington and among investors and taxpayers across the country.

In this article, we break down the top 17 tax highlights from the bill, particularly as they impact individuals and investors.


1. Permanent Tax Cuts

The bill proposes making the 2017 individual tax cuts permanent. Without passage, tax brackets would revert to higher pre-2017 rates:

  • 12% → 15%
  • 22% → 25%
  • 24% → 28%
  • 32% → 33%
  • 37% → 39.6%

If passed, current lower rates will remain.


2. Expanded Standard Deductions

The standard deduction nearly doubles:

  • Singles: From $8,300 to $16,600
  • Married Filing Jointly: From $16,300 to $32,600

This change would apply from 2025 through 2028.


3. Senior Deduction

A new above-the-line $4,000 deduction for seniors (65+) with:

  • AGI < $75,000 (single)
  • AGI < $150,000 (married filing jointly)

Applies from 2025 to 2028 for both itemizers and non-itemizers.


4. Elimination of Personal Exemptions

Personal exemptions will be permanently eliminated to simplify the tax code, coinciding with the expanded standard deduction.


5. 100% Bonus Depreciation (Section 168)

Real estate and other assets with recovery periods under 20 years would qualify for full (100%) bonus depreciation from 2025 to 2029. A major win for real estate investors and syndicators utilizing cost segregation.


6. Increased Section 179 Deduction

The limit for business asset expensing increases:

  • Deduction cap: $2.5 million
  • Phase-out threshold: $4 million

Ideal for businesses that cannot use bonus depreciation due to state limitations.


7. Permanent Elimination of Miscellaneous Itemized Deductions

The temporary repeal of miscellaneous itemized deductions becomes permanent. Itemized deduction value will be capped at 35% of each dollar for high earners.


8. Permanent Deduction Limits

Several tax code limitations become permanent:

  • Mortgage interest: Capped at $750,000
  • Casualty losses: Only deductible during federal emergencies
  • Other eliminations: Moving expenses, bicycle reimbursements, wagering loss limits — all made permanent.

9. SALT Deduction Cap Raised

The State and Local Tax (SALT) deduction cap is increased:

  • From $10,000 to $30,000
  • Phases down for those earning over $400,000

A contentious provision, especially for high-tax states.


10. Tax-Free Tips and Overtime (2025–2028)

Federal income tax is eliminated on:

  • Tip income
  • Overtime pay
    For workers earning less than $160,000. Designed to benefit service industry and hourly workers.

11. Car Loan Interest Deduction

From 2025–2028, interest on auto loans (up to $10,000) becomes deductible:

  • Applies to vehicles (including motorcycles and RVs) assembled in the U.S.
  • Phases out for singles earning > $100,000 and couples > $200,000

12. Enhanced Health Savings Accounts (HSAs)

For individuals earning <$75,000 and families <$150,000:

  • Additional contributions of up to $4,300 (individual) or $8,550 (family) are allowed.
  • Allows HSA use for fitness expenses, e.g., gym memberships:
    • Up to $500 (individual) or $1,000 (family) per year

13. Section 199A Pass-Through Deduction Increase

The deduction for qualified business income (QBI) increases:

  • From 20% to 23%
  • Becomes permanent
    Applies to sole proprietors, partnerships, and S-corps — not C-corps.

14. Excess Business Loss Limitation Made Permanent

Excess business loss caps for non-corporate taxpayers are made permanent:

  • $313,000 (single), $626,000 (joint) in 2025
  • Losses above the cap are carried forward

15. New Opportunity Zones (2027–2033)

A second wave of Opportunity Zones will be introduced:

  • Offers capital gains deferrals and exclusions
  • Aimed at reinvigorating investment in distressed areas

16. Enhanced Child Tax Credit

Child tax credit increases to $2,500 per child for tax years 2025–2028.


17. New “MAGA” Savings Accounts

$1,000 in federal savings accounts for children born between 2017 and 2028:

  • Both parents must have work-eligible Social Security numbers
  • U.S. citizenship for the child is required
  • If parents are ineligible, the government can still establish the account

Conclusion: A Tax Overhaul for the Individual Investor

The Big Beautiful Bill is designed to deliver sweeping benefits across multiple taxpayer categories — especially investors, real estate professionals, small business owners, service workers, and families. While it’s still a proposal and faces potential delays or revisions, the bill represents a significant shift in tax policy aimed at solidifying the legacy of the 2017 tax cuts.

If you’re an investor or entrepreneur, this bill — if passed — could substantially reshape your tax planning strategies for years to come.

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