THE BRIDGEWATER-SOMERVILLE CONNECTION PAGE 27 SEPT/OCT/NOV 2025 theconnectionsnj.com 80 years of professional service Fee-based Wealth Management Tax-efficient Investing Family Office Services Financial Planning Tailored Service, Disciplined Strategies, and Committed Guidance. Individual Tax Preparation Business Tax Preparation Accounting Estate and Trusts Accounting Services are provided by Shapiro Certified Public Accountants and not a service provided by Raymond James. Shapiro CPA's and Shapiro Financial Group is not a registered broker/dealer and is independent of Raymond James Financial Services. Complimentary Initial Consultation 30 Technology Dr., Warren, NJ 908-222-3770 info@shapirogrp.com The key to your financial success shapirogrp.com Sophisticated expertise for today and future generations. Securities offered through Raymond James Financial Services, Inc., member FINRA/SIPC. Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional. Investment advisory services are offered through Raymond James Financial Services Advisors, Inc. Shapiro Financial Group is not a registered broker/dealer and is independent of Raymond James Financial Services. y now, you have heard about the most recent sweeping tax legislation. HR 1, or, as the President has named it, the One Big, Beautiful Bill! Of course, beauty is in the eye of the beholder. The CEO of the American Institute of Certified Public Accountants, however, has deemed the bill a win for millions of businesses and taxpayers across the country. Let’s explore the key provisions beyond rates and standard deductions. Let’s look at the Big changes! The law extends tax cuts from the Tax Cuts and Jobs Act (TCJA) of 2017, which were previously set to expire or “sunset” at the end of this year. By lowering income tax rates, expanding deductions, and essentially making certain exemptions permanent, the bill provides more certainty around current income taxes and future tax planning. As residents of NJ, state and local taxes (SALT) are significant for us. The law increases the SALT deduction from $10,000 (way too low) to $40,000, which is indexed to inflation and subject to phaseout. As previously written, well-informed business owners in high-tax states can elect to deduct state taxes via the pass-through entity method (PTE). The bill continues the full PTE deduction. The increased $40,000 SALT cap will result in more taxpayers itemizing deductions. The Big Bill was kind to estates and beneficiaries. The gift and estate tax exemption increased to $13.99 million for singles and $27.98 million for married couples in 2025 rather than reverting to prior levels. In 2026, it increases to $15 million and $30 million, respectively, and indexes to inflation thereafter. These higher exemptions will provide relief for most. The best part is the “step up” in basis, which shields beneficiaries from capital gains tax and leaves appreciated assets intact. A popular feature of the bill is the provision for no tax on tips and overtime within limits. The bill also creates a limited below-the-line deduction for cash charity donations, along with auto interest on US cars. Contrary to discussions, social security taxability remains unchanged. NJ does not tax Social Security benefits (one for the home team!). The 20% small business deduction for qualified business income (QBI) becomes permanent with this legislation. Many business owners may be able to deduct up to 20% of their qualified business income. There is a new savings account provision for children that is called (what else?) Trump IRA accounts. The pilot program provides a $1,000 seed payment directly from the US Treasury when opening a Trump account for a child born between Jan. 1, 2025, and Dec. 31, 2028. Contributions of up to $5,000 per year can be made by parents and normal distributions may be made after age 18. Lastly, I would not bet that this is a complete listing of the contents of the 870 pages in the OBBA. If I did, I would only be able to deduct my losses up to 90%! If you would like to see the full details of the before and after of the One Big, Beautiful Bill, simply send me an email at rshapiro@shapirogrp.com. I will forward you a detailed flow chart. We have provided proactive individualized tax management along with timely and accurate preparation for over 75 years. I would welcome the opportunity to help your family and business grow and prosper. You should discuss any tax or legal matter with your tax or legal advisor. Shapiro CPAs does not provide legal services. This article is not to be construed as written advice under IRS circular 230. FINANCIALFORUM One Beautiful, Little Article By Robert Shapiro CPA, ABV Shapiro CPAs be able to deduct my loss We have provided proac tive individualized tax man B
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