<\/p>\n\n\n\n
By Sean Hummel, CFP\u00ae<\/em><\/p>\n\n\n\n November 16, 2025<\/strong><\/p>\n\n\n\n \u201cThe wealthiest families don\u2019t chase tax breaks \u2014 they anticipate the terrain.\u201d<\/em><\/p>\n\n\n\n The One Big Beautiful Bill Act (OBBBA)<\/strong> has reshaped the 2025 landscape in ways that quietly favor proactive households. Below are seven moves<\/strong> worth noting.<\/p>\n\n\n\n Move #1: The $77,500 After-Tax Window Remains Open<\/strong><\/p>\n\n\n\n A rarely discussed 401(k) provision (IRS Notice 2024-2<\/em>) continues to permit significant after-tax contributions followed by in-plan conversions.<\/p>\n\n\n\n For households with robust cash flow, this channel offers a way to shift capital into tax-free growth \u2014 provided employer plan documents allow it.<\/p>\n\n\n\n Move #2: State & Local Tax Dynamics Have Shifted<\/strong><\/p>\n\n\n\n The new $40,000 federal ceiling<\/strong> on itemized state and local tax deductions often referred to as SALT pairs with pass-through entity tax elections in 36 states. An additional nine states have no income tax. The residents of the following states without this option. Delaware, Maine, North Dakota, Pennsylvania, Vermont)<\/p>\n\n\n\n High-property-tax jurisdictions (NY, CA, CT) now present a different arithmetic for operating companies and real estate holdings.<\/p>\n\n\n\n Move #3: Appreciated Securities Carry Hidden Leverage<\/strong><\/p>\n\n\n\n When public equities with low cost basis are transferred to a donor-advised fund, the interplay of Section 170(b)(1)(A) and Section 170(e) can neutralize capital-gains exposure while preserving deduction capacity.<\/p>\n\n\n\n Timing matters: the benefit compounds when multiple years of giving are accelerated into a single tax year.<\/p>\n\n\n\n Move #4: Required Minimum Distributions Can Vanish Silently<\/strong><\/p>\n\n\n\n For those 70.5 years of age or older, direct charitable transfers up to $108,000 satisfy RMD obligations without inflating adjusted gross income.<\/p>\n\n\n\n This tactic can influence not only income tax, but also Medicare premium thresholds and Social Security benefit taxation. <\/p>\n\n\n\n Move #5: Qualified Small Business Stock Rules Reward Patience<\/strong><\/p>\n\n\n\n Section 1202<\/strong> continues to exclude up to $10 million<\/strong> in gains per spouse, per qualifying C-corporation, provided the five-year holding clock is met.<\/p>\n\n\n\n Founders and early investors often discover multiple \u201cstacks\u201d across entities \u2014 a detail easily overlooked in concentrated portfolios.<\/p>\n\n\n\n Move #6: Bonus Depreciation Retains Front-Loaded Power<\/strong><\/p>\n\n\n\n The 100% immediate expensing election<\/strong> applies to certain real estate improvements and syndicated investments placed in service after July, 19 2025. (Section 168(k)(8)<\/em>)<\/p>\n\n\n\n Material participation requirements remain the gating factor for offsetting ordinary income.<\/p>\n\n\n\n The OBBBA also introduces new Section 168(n), which allows a 100% deduction for “qualified production property”. This includes domestic real property used in manufacturing, refining, or agricultural production.<\/p>\n\n\n\n Move #7: Annual Exclusion Climbs to $19,000<\/strong><\/p>\n\n\n\n Indexed inflation adjustments now permit $19,000 per donee <\/strong>without touching lifetime estate\/gift exemption.<\/p>\n\n\n\n When combined with five-year 529 acceleration or direct payment of tuition\/medical expenses, the leverage multiplies across generations.(Rev. Proc. 2024-40<\/em>)<\/p>\n\n\n\n Closing Note<\/strong><\/p>\n\n\n\n The most effective UHNW strategies rarely involve heroic moves.<\/p>\n\n\n\n They emerge from quiet alignment between legislative intent, family objectives, and mathematical reality.<\/p>\n\n\n\n If any of these moves resonates with you, we can see if you are in a position to take action.<\/p>\n\n\n\n <\/p>\n<\/blockquote>\n\n\n\n Disclosure<\/strong><\/p>\n\n\n\n The opinions expressed in any commentary posted on this site are solely those of the individual author and do not necessarily reflect the views or opinions of XYIS. These opinions are based on information available at the time of posting and are subject to change without notice. XYIS does not commit to updating any posted positions or commentary to reflect subsequent developments. While the information and reasoning used to form these opinions are believed to be from reliable sources, XYIS does not verify this information, and no guarantee is provided regarding its accuracy, completeness, or validity. XYIS disclaims any and all liability for actions taken or not taken based on the content of this site. No warranty, express or implied, is given in connection with the content provided.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":" By Sean Hummel, CFP\u00ae November 16, 2025 \u201cThe wealthiest families don\u2019t chase tax breaks \u2014 they anticipate the terrain.\u201d The One Big Beautiful Bill Act (OBBBA) has reshaped the 2025 landscape in ways that quietly favor proactive households. Below are seven moves worth noting. Move #1: The $77,500 After-Tax Window Remains Open A rarely discussed […]<\/p>\n","protected":false},"author":1,"featured_media":13,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[9,8,4,6,7,5,3],"class_list":["post-9","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-10","tag-after-tax","tag-bonus-depreciation","tag-deductions","tag-gifting","tag-rmd","tag-salt","tag-taxes"],"_links":{"self":[{"href":"https:\/\/tenringwealth.better-seo.net\/index.php\/wp-json\/wp\/v2\/posts\/9","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tenringwealth.better-seo.net\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tenringwealth.better-seo.net\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tenringwealth.better-seo.net\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tenringwealth.better-seo.net\/index.php\/wp-json\/wp\/v2\/comments?post=9"}],"version-history":[{"count":4,"href":"https:\/\/tenringwealth.better-seo.net\/index.php\/wp-json\/wp\/v2\/posts\/9\/revisions"}],"predecessor-version":[{"id":23,"href":"https:\/\/tenringwealth.better-seo.net\/index.php\/wp-json\/wp\/v2\/posts\/9\/revisions\/23"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tenringwealth.better-seo.net\/index.php\/wp-json\/wp\/v2\/media\/13"}],"wp:attachment":[{"href":"https:\/\/tenringwealth.better-seo.net\/index.php\/wp-json\/wp\/v2\/media?parent=9"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tenringwealth.better-seo.net\/index.php\/wp-json\/wp\/v2\/categories?post=9"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tenringwealth.better-seo.net\/index.php\/wp-json\/wp\/v2\/tags?post=9"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\n\n\n\n
\n\n\n\n
\n\n\n\n
\n\n\n\n
\n\n\n\n
\n\n\n\n
\n\n\n\n
\n\n\n\n
\n\n\n\n\n