Pros & Cons of OBBBA: How Waiting Could Cost You in 2026

The Opportunity Is Real—but So Is the Deadline
The “One Big Beautiful Bill Act” (OBBBA) introduced a wave of tax incentives designed to stimulate investment, support business growth, and give families more flexibility in their planning. But like many generous tax laws, these benefits come with a sunset. Several key provisions are set to phase out after 2026, meaning that timing matters more than ever.

Whether you’re a business owner planning capital purchases or a family looking at long-term estate strategies, waiting too long could mean missing out on significant tax savings and planning advantages.

The Pros: Strategic Advantages Through 2026

Bigger Deductions
OBBBA restored 100% bonus depreciation through 2026, allowing businesses to fully deduct the cost of qualifying assets in the year they’re placed in service. This is a powerful incentive to reinvest in equipment, property, and infrastructure while maximizing tax savings.

Higher Estate Tax Exemptions
The federal estate tax exemption is locked in at $15 million per person—double the pre-2018 levels—through 2026. This creates a limited-time opportunity for high-net-worth families to transfer wealth tax-free through gifting strategies, trust planning, and business succession moves.

Increased SALT Cap
The state and local tax (SALT) deduction cap was raised to $40,000, easing the tax burden for many high-income households and providing more flexibility in tax planning.

The Cons: Risks and Complexities

Medi-Cal Eligibility Tightening
For seniors and families who may need long-term care, OBBBA introduced stricter Medi-Cal eligibility rules. Delaying planning could make it harder to qualify for benefits under the new regulations.

New Compliance Complexities
With expanded deductions and credits come new reporting and recordkeeping requirements. Businesses and families that don’t plan early may find themselves scrambling to meet compliance deadlines.

Temporary Windows for Bonus Depreciation
The 100% bonus depreciation benefit begins phasing out after 2026. Each year you wait, the deduction percentage drops—meaning potential tax savings are literally shrinking on the calendar.

Why Waiting Is Risky

The clock is ticking. By 2026, the phaseout of 100% bonus depreciation will be underway, and the higher estate tax exemption is scheduled to revert to pre-2018 levels (adjusted for inflation). Families who delay wealth transfers or businesses that postpone major investments may lose the ability to capture these benefits entirely.

Additionally, regulatory tightening—especially around programs like Medi-Cal—means that “waiting until later” could expose families to stricter rules and fewer options. Strategic action now allows you to lock in advantages under today’s more favorable landscape.

The Bottom Line

OBBBA offers powerful opportunities—but only for a limited time. Planning ahead can help you capture bigger deductions, maximize wealth transfers, and navigate new rules with confidence. Waiting could mean smaller tax breaks, higher future taxes, and fewer planning options.

Don’t wait. Call our office today at (949) 333-3792 to schedule a Planning Session today to make the most of OBBBA while the window is open.