We recently hosted a live webinar to break down the proposed “One Big Beautiful Bill” (OB3) and what it could mean for individuals, business owners, and investors heading into the 2025 tax year and beyond. Led by Matt Schumacher, Director of Tax Planning, and James Kelly, Director of Operations, the session focused on one central message: tax changes create opportunity, but only if you plan early.
Here’s a recap of the key insights we shared and why proactive planning matters more than ever.
Why Proactive Tax Planning Matters Now
At Tavola Group, we believe tax planning is not something you do once a year when it is time to file. Real tax planning is proactive, strategic, and aligned with your broader financial goals.
With OB3 spanning nearly a thousand pages and many provisions taking effect at different times or even retroactively, timing is critical. Waiting until year end, or worse, after the year closes, can limit your options. The earlier you evaluate how new rules apply to your situation, the more flexibility you have to reduce liability, improve cash flow, and avoid missed opportunities.
Major Changes to Watch
100% bonus depreciation is back and made permanent
This is one of the most impactful changes for businesses. Equipment and certain qualifying assets can now be fully deducted in the year they are placed in service. The provision is retroactive to January 20, 2025, making timing especially important for planned purchases.
For real estate investors, bonus depreciation may still apply through cost segregation studies, allowing components of a property with shorter useful lives to be accelerated.
Estate tax exemptions increased
The federal estate tax exemption rises from approximately $13.6 million to $15 million per individual (double for married couples). The new limits apply for 2025 and 2026 and will be indexed for inflation starting in 2027, creating additional planning flexibility for high-net-worth families.
Expanded credits for families and employers
The Child Tax Credit increases and will be indexed for inflation in future years. Employer-provided childcare credits and dependent care contribution limits have also been significantly expanded, offering meaningful savings for both employers and working families.
Changes That Come With Deadlines
Energy and EV incentives are ending
Several popular credits are being phased out:
- New and used EV credits end September 30, 2025
- Home energy improvement and residential clean energy credits expire at the end of 2025
- Some new energy-efficient home incentives phase out in 2026
If these upgrades are already part of your plans, completing them before the deadlines could preserve valuable tax benefits.
SALT deduction cap increased temporarily
The state and local tax (SALT) deduction cap rises from $10,000 to $40,000 through 2029, with phaseouts beginning at higher income levels. This change primarily benefits taxpayers who itemize and live in higher-tax states, and it may help more households exceed the standard deduction threshold.
Opportunities for Businesses and Innovators
Research and experimentation expenses can be deducted immediately
Businesses under $31 million in annual revenue can now fully deduct qualifying R&E costs instead of amortizing them over 15 years. Even better, this change allows retroactive amendments for 2022 through 2024, potentially generating refunds.
New deductions and targeted relief
Additional provisions include:
- A new senior bonus deduction (2025–2028)
- Deductions for qualified overtime and tip income (claimed at filing)
- An above-the-line deduction of up to $10,000 per year for interest on a new vehicle loan
As always, eligibility depends on your specific facts and circumstances.
Cutting Through Tax Myths
One theme that resonated during the webinar was the amount of misinformation circulating online. Not every strategy you see on social media is legitimate, and many popular “write-off” ideas do not hold up under IRS scrutiny.
Whether it is vehicle deductions, business expenses, or aggressive structures, the key principle is the same: the strategy must align with real business use and economic purpose. Effective planning is not about gaming the system. It is about using the tax code intentionally and correctly.
The Biggest Takeaway: Do Not Wait
Many OB3 provisions have unusual effective dates, phaseouts, or retroactive elements. Large equipment purchases, entity changes, cost segregation studies, and other strategies often require financing, documentation, and implementation time.
If you wait until the fourth quarter or after the year ends, the window to act may already be closed.
Tax planning works best when it is integrated into your financial decisions throughout the year, not added on afterward.
Let’s Find Your Opportunities
Every situation is different, and the real value of these changes comes from understanding how they apply to you. If you are wondering whether OB3 could reduce your tax liability, improve cash flow, or support your long-term goals, we are here to help.
We offer a complimentary tax strategy consultation to identify missed deductions, evaluate your current structure, and build a proactive plan for the year ahead. There is no cost and no pressure, just practical insight from a team that does this every day.
Book your free tax strategy consultation with Tavola Group and take the first step toward a smarter, more proactive tax strategy.
