On Friday, the President signed into law the most sweeping piece of tax legislation in nearly a decade — the “One Big, Beautiful Bill” (OBBB) — with nearly $5 trillion in tax breaks aimed squarely at business owners, high-income earners, and investors. At 900+ pages, the bill is packed with updates — but we’ve summarized the most relevant changes below for our clients and friends at GatePass. Here’s how it breaks down:
1. Lower Tax Rates Made Permanent
The 2017 Tax Cuts and Jobs Act (TCJA) was originally set to expire in 2026. OBBB locks in those lower income tax brackets indefinitely — including the top rate of 37% (down from 39.6%). Corporate rates stay flat at 21% for C-Corps.
2. QSBS (Qualified Small Business Stock) Gets More Attractive
For founders, early employees, and angel investors in C-Corps, this one’s a big deal:
Partial QSBS introduced:
Qualifying “small business” asset ceiling raised from $50M → $75M
This further cements QSBS as one of the most powerful long-term wealth tools available.
3. 100% Bonus Depreciation Is Back
Investors in commercial real estate now get to take immediate full-year depreciation on eligible assets under 20-year lifespans. Think: cost segregation studies and year-one tax deductions that can offset as much as 20–25% of a property’s purchase price. This is a big win for real estate-heavy portfolios.
4. Tech & Software R&D Gets Immediate Deductibility Again
In a reversal of an unpopular TCJA provision, U.S.-based developer salaries are now fully deductible in year one again. This is a major break for software companies and growth-stage startups. (Does not apply to international developer teams.)
5. Estate & Gift Tax Exemptions Made Permanent — And Higher
The lifetime gift and estate tax exemption has been increased and made permanent:
This was expected to revert to ~$7M in 2026, so this is meaningful for families planning wealth transfers or generational gifting strategies.
6. QBI Deduction Made Permanent for Pass-Through Businesses
The 20% Qualified Business Income (QBI) deduction for LLCs, S-Corps, and other pass-throughs is here to stay. Still subject to income limits and reasonable salary rules — but no sunset date now.
7. New “Trump Accounts” for Kids Born 2025–2029
Every child born between 2025–2029 will get a $1,000 federally funded investment account, tracking a U.S. equity index like the S&P 500. Parents can contribute up to $5,000/year post-tax, and the account grows tax-free with long-term capital gains rates on qualified withdrawals. Think of it as a hybrid between a Roth IRA and a 529 plan.
8. Opportunity Zone Tax Breaks Extended Indefinitely
The Opportunity Zone (OZ) program is now permanent:
Some tighter rules are being introduced to define eligible zones going forward, but the strategy remains powerful for investors with large liquidity events.
9. Gamblers Can Now Only Deduct 90% of Losses
Gamblers used to be able to fully offset winnings with losses. Under OBBB, only 90% of losses are deductible, potentially creating a taxable profit even for break-even players.
10. SALT Deduction Increased — But With Limits
The State and Local Tax (SALT) deduction cap has been raised from $10,000 to $40,000, with a 1% annual bump through 2030 before reverting. This deduction phases down for those with modified adjusted gross income over $500,000. There’s still a marriage penalty (singles and married couples get the same cap), but good news: the Pass-Through Entity Tax (PTET) workaround for business owners — which allows them to bypass the SALT cap — was not eliminated in the final bill.
Final Thoughts
This bill is wide-ranging, complex, and loaded with planning opportunities — but also trade-offs. If you’re a business owner, high-income professional, or investor, there are smart strategies to consider across gifting, real estate, business structure, and long-term compounding.
At GatePass Capital, we’re helping clients understand how these changes apply to their unique situation — and how to leverage them for long-term gain. If you’d like to talk through how this affects your plan, feel free to reach out.
Unless otherwise indicated, commentary on this site reflects the personal opinions, viewpoints and analyses of the author and should not be regarded as a description of services provided by GatePass Capital or its affiliates. The opinions expressed here are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual on any security or advisory service. It is only intended to provide education about the financial industry. The views reflected in the commentary are subject to change at any time without notice. While all information presented, including from independent sources, is believed to be accurate, we make no representation or warranty as to accuracy or completeness. We reserve the right to change any part of these materials without notice and assume no obligation to provide updates. Nothing on this site constitutes investment advice, performance data or a recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. Investing involves the risk of loss of some or all of an investment. Past performance is no guarantee of future results.
The best time to start is now. Personalized financial solutions don’t have to be difficult. We’d love to chat with you to learn more about who you are, what your goals are, and how we can help.
TALK TO AN ADVISOR