The U.S. House and Senate recently passed the Tax Simplification and Reform Act of 2025 (aka, the “Big Beautiful Bill”), which represents one of the most sweeping pieces of legislation impacting taxation and finances in about a decade. The new legislation offers both opportunities and complexities for high-net-worth individuals and families.
As part of our True Wealth Management approach and service promise to our clients, we provide proactive, personalized guidance. To highlight some of the more impactful provisions, we offer insight into how we optimize portfolios in light of these changes.
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Estate and Gift Tax Exemption Increases: A Window of Opportunity
What changed: The federal estate and gift tax exemption increased from $13.61 million to $15 million per individual (indexed for inflation after 2026).
Why it matters: Families with estates under ~$30 million (for couples) may now avoid federal estate tax altogether. If you’ve already maximized previous exemptions, this is an ideal moment to make additional gifts tax-free.
Our perspective: We can work with you to revisit estate plans, gift strategies, and trust structures to take full advantage of this increased capacity while preparing for the possibility of political reversals down the road.
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Permanent Lower Tax Rates (for now):
What changed: Lower marginal rates and a higher standard deduction are now permanent.
Why it matters: Strategic income and deduction planning will now operate in a more predictable environment.
Our perspective: We will be modeling multi-year tax scenarios for clients to time income recognition, Roth conversions, and other strategies that benefit from lower rates.
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SALT Deduction Relief: Partial, but Worth Planning Around
What changed: The state and local tax (SALT) deduction cap phases out for adjusted gross income (AGI) over $500,000.
Why it matters: The relief is limited for ultra-high earners, but meaningful for those in high-tax states with annual income between $500K–$650K.
Our perspective: We’re working with client tax professionals to evaluate the possibility of “bunching” property taxes and charitable contributions, as well as multi-state residency options and advanced deduction strategies tailored to income profiles to ensure marginal gains aren’t overlooked.
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Full Expensing for Business Investments: Acceleration Pays Off
What changed: Business owners can now immediately expense up to $2.5 million/year for qualifying property and R&D.
Why it matters: This incentivizes reinvestment and innovation, especially for entrepreneurs and investors in emerging tech.
Our perspective: We’re coordinating with client tax and business advisors to time purchases and capitalize on full deductions while maintaining alignment with liquidity and long-term goals.
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QSBS Expansion: Big Wins for Startup Founders and Investors
What changed: 100 percent of gains on Qualified Small Business Stock (QSBS) can now be excluded (subject to meeting all qualifications).
Why it matters: This significantly enhances the tax efficiency of startup equity, which is ideal for founders, early employees, and angel investors.
Our perspective: When conducting portfolio reviews, we will be working to identify qualifying shares, optimize holding periods, and integrate this benefit into broader wealth-building plans for clients.
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Business Loss Limits Tighten: A Need for Tactical Loss Management
What changed: The excess business loss limitation has been extended and modified, curbing the ability to offset income with large business losses.
Why it matters: This could increase tax liability in loss-heavy years.
Our perspective: Our team is available to help clients align investment and business planning to structure losses and income recognition for long-term tax efficiency.
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Charitable Giving: More Incentives, New Minimums
What changed: The 60 percent AGI deduction limit for cash gifts is now permanent, but new minimum thresholds were introduced (0.5 percent for individuals).
Why it matters: While flexibility increases, some donors may need to adjust patterns to qualify for deductions.
Our perspective: We’re re-evaluating donor-advised funds, charitable trusts, and direct giving strategies to preserve both impact and tax benefits.
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Opportunity Zones & LIHTC: Permanently Strategic Tools
What changed: Tax benefits for Opportunity Zones and Low-Income Housing Tax Credits are now permanent and enhanced.
Why it matters: These offer long-term tax-advantaged investment options with social impact.
Our perspective: We are evaluating these strategies not only for portfolio diversification, but also for legacy planning and impact investing.
Putting It All Together: True Wealth Management in Action
True Wealth Management is more than responding to changes. It means integrating these shifts into a holistic strategy centered on your personal goals and definition of financial success. This legislation underscores the need for intentional, multidisciplinary planning that adapts to both opportunity and uncertainty.
Whether you’re a business owner, investor, family steward, or philanthropist, Slaughter Associates is ready to ensure the Tax Simplification and Reform Act translates into meaningful progress on your path to true wealth.