H.R.1 of the 119th Congress, better known as the “One Big Beautiful Bill Act,” was signed into law on July 4, 2025. This omnibus bill contains many provisions that could affect estate planning and running a business. This blog is a very brief overview highlighting some key points we believe you should be aware of.
Contact your own CPA, business attorney, and/or estate planning attorney to discuss how the bill affects you.
Implications of the OBBB for Estate Planning
The following provisions in the OBBB affect estate planning:
- $15 million applicable exclusion amount for federal estate taxes, lifetime gift taxes, and generation-skipping transfer (GST) taxes
- 1031 “Like Kind” exchanges preserved
- Step-up in basis at death is the same; it has not been repealed or capped
Check out this blog for a closer look.
Implications of the OBBB for Business Owners
OBBB affects some businesses, too.
- Expansion of Qualified Small Business Stock (QSBS) exclusion (read more about the QSBS here on our blog)
- The Qualified Business Income (QBI) deduction is now permanent (read more about the QBI deduction on the IRS website)
- Doubles available deductions under Section 179 from $1.25 million to $2.5 million
Many additional provisions in the bill have implications for yearly tax planning and managing cash flow, which you should discuss with your company’s CPA and/or tax preparer.
South Carolina Business Attorney Gem McDowell
Gem and his team at the Gem McDowell Law Group help people start, grow, and protect their businesses in South Carolina. Gem McDowell is a problem solver with over 30 years of experience in business law and commercial real estate, helping business professionals protect their interests and avoid mistakes. Call to schedule a free consultation today at (843) 284-1021.
