Pros & Cons of OBBBA: What Advisors Should Flag Before Year-End

For financial advisors, CPAs, and fiduciaries, the One Big Beautiful Bill Act (OBBBA) presents both powerful opportunities to add value and critical pitfalls to flag for clients. With year-end approaching, now is the time to help clients make informed, strategic moves—while the window of opportunity is open.

Opportunities to Flag

Bonus Depreciation Planning
OBBBA restores 100% bonus depreciation through 2026. Advisors should encourage business-owner clients to time capital expenditures strategically, ensuring they can maximize deductions while these provisions are still in place. This may be particularly valuable for clients planning major equipment purchases or property improvements.

Estate Gifting
With the $15 million per-person estate tax exemption locked in, clients have a prime opportunity to leverage lifetime gifts and advanced trust strategies. Advisors can help identify clients who should act now to move assets out of their taxable estates before potential changes in 2026.

SALT Deduction
The increase in the state and local tax (SALT) deduction cap to $40,000 gives higher-earning clients a chance to revisit whether itemizing or taking the standard deduction makes more sense. Advisors can work with tax professionals to recalculate potential savings and optimize year-end planning.

Risks to Flag

Medi-Cal Implications for Older Clients
While OBBBA offers significant tax benefits for many, seniors and individuals on Medi-Cal may face unintended consequences, particularly around eligibility and asset limits. Advisors serving older clients should collaborate closely with elder law professionals to avoid missteps.

Temporary Nature of Key Provisions
Many of OBBBA’s most generous provisions sunset after 2026. Advisors should ensure clients understand the time-sensitive nature of these opportunities—and the potential tax landscape shifts that could follow.

Need for Coordinated Planning
Perhaps the biggest risk is fragmented planning. Tax, estate, and business strategies under OBBBA are interconnected, and a lack of coordination can lead to missed opportunities or conflicting strategies. Advisors should take the lead in facilitating holistic reviews that bring all professionals to the table.

Advisors’ Role: Proactive Strategy Wins

The best advisors will educate clients early, align planning across disciplines, and make sure strategies are implemented before December 31. A thoughtful year-end review can mean the difference between capturing major benefits or watching them slip away.

As 2025 draws to a close, now is the time to help your clients review and coordinate their planning under OBBBA. Whether it’s a tax strategy session, business audit, or estate planning review, proactive action ensures your clients make the most of this temporary window.

Encourage your clients to review their planning to align strategies and safeguard their financial future.

Should you need assistance, our team is happy to partner with you to coordinate planning efforts and support your clients through these important decisions.