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When sweeping financial legislation gets passed, it is easy to get caught up in the headlines or miss the real takeaway. Our view is that this is more of a headline than a groundbreaking development. In many cases, it only extends what was previously temporary under the Trump Tax Cuts.
As a result, our view is that the real economic takeaway is less about tax changes and more about the market’s appetite for certainty. When governments hint at new taxes, regulations, or tariffs — especially without providing clarity — markets tend to pull back. We see investors freeze and companies delay significant spending. That uncertainty creates real economic slowdowns.
This bill, however, reduces that noise. It creates clarity around what’s coming, especially regarding taxes. That certainty alone is beneficial for markets and planning.
What the Bill Actually Does
That said, there are a few specific line items in this tax bill that we see as especially relevant to personal financial planning. While there are dozens of line items, here are some of the most relevant changes for investors, business owners, and high-income households:
Information pulled can be referenced at TaxFoundation.org. You can also use this link for more detailed answers about the bill.
Corporate Tax Rates Are Staying Put
Originally scheduled to expire, the lower corporate tax rates from the Trump-era Tax Cuts and Jobs Act are now written into law for the foreseeable future. That means large businesses — and the stock market overall — can operate without the fear of a surprise tax hike.
If you own a business or invest heavily in public companies, this kind of consistency is meaningful. Businesses can now budget, invest, and hire with more predictability.
The SALT Deduction Just Got Saltier
The deduction for State and Local Taxes (SALT) was previously capped at $10,000. That cap has now increased to $40,000 — a significant jump for high-income households in high-tax states. This change may materially reduce taxable income for those who itemize deductions and pay substantial property or income taxes at the state level.
Bonus Depreciation is Back at 100%
If you run a business, this is a big one. The ability to write off the full cost of equipment (like trucks, machinery, or technology) in the year it is purchased — known as 100% bonus depreciation — had been gradually reduced. This bill reinstates it fully.
Maybe it’s once again time to expect a December rush on truck and equipment purchases as contractors and business owners take advantage. This provision encourages growth by rewarding reinvestment.
Capital Gains and Senior Credits
Capital gains tax treatment remains unchanged — meaning no surprise rate hikes for now. In addition, seniors may benefit from a new $6,000 credit, though the details and impact are still being digested.
What Should You Do About It?
Here are a few proactive steps to consider with your financial team:
Review your state/local tax picture. If you’re in a high-tax state, re-run your itemized deduction scenarios to see if the increased SALT cap meaningfully reduces your tax liability.
For business owners: Revisit your capital investment strategy. With 100% bonus depreciation back on the table, now may be the time to upgrade or expand.
Reaffirm portfolio allocations. With more certainty around corporate tax rates and capital gains, your long-term asset allocation assumptions may not need to shift, but they’re worth reviewing.
Plan ahead for year-end. Expect December to be busy for deductions and write-offs. Don’t wait to make strategic purchases or gifting decisions.
Talk with your advisor. Laws may be “written in,” but every household has a different tax profile. Make sure the details are applied to your specific situation.
At Bernardo Wealth Planning, our team is here to provide robust support across your entire financial plan. We invite you to lean on our in-house CPA, or allow us to collaborate directly with your CPA relationship.
You don’t have to become an expert in the Big Beautiful Bill, but it certainly helps to mobilize your financial team.