Stay Ahead of Tax Law Changes: Learn about the One Big Beautiful Bill

One Big Beautiful Bill: What Didn’t Change

The One Big Beautiful Bill (OBBB) brings some of the biggest tax law updates since the Tax Cuts and Jobs Act of 2017—but not everything is different.

While the headlines focus on new deductions, higher thresholds, and expanded credits, many important rules and benefits from prior law remain exactly the same. That stability can make tax planning easier, especially if you already have strategies in place.

At Molen & Associates, we help clients understand not just what’s new, but also what they can count on staying the same. Here’s what’s unchanged under the OBBB.

1. Higher Standard Deduction & Current Tax Brackets Stay in Place

  • The higher standard deduction amounts introduced under the TCJA were made permanent by the OBBB, so they’re the same structure you’ve been using in recent years—just inflation-adjusted each year.
  • The seven tax brackets (10%, 12%, 22%, 24%, 32%, 35%, 37%) remain intact.
  • For most taxpayers, this means your marginal rate structure is familiar and predictable.

2. Qualified Business Income (QBI) Deduction Rules Are Unchanged—But Permanent

  • The 20% deduction for qualified pass-through income keeps the same eligibility tests, SSTB rules, and wage/UBIA limits.
  • No changes to how Schedule C, partnerships, S corps, or SSTBs qualify—just the assurance that the deduction isn’t set to expire.

3. Mortgage Interest Deduction Rules Remain the Same

  • The $750,000 mortgage debt cap (for loans originated after Dec. 15, 2017) is still in place.
  • Interest on home equity loans is still deductible only if used for buying, building, or improving your home.

4. Retirement Account Rules Stay the Same

  • Contribution limits for IRAs, 401(k)s, HSAs, and other tax-advantaged retirement plans are still set by annual IRS inflation adjustments—no OBBB changes to age rules, RMDs, or penalty structures.
  • Roth conversion rules remain the same.

5. Capital Gains Rates & Thresholds Are Unchanged

  • The 0%, 15%, and 20% long-term capital gains brackets and the 3.8% net investment income tax rules are unchanged.
  • Planning strategies for harvesting gains or losses still work the same way.

6. Education Tax Benefits Stay Intact

  • American Opportunity Credit (AOC) and Lifetime Learning Credit (LLC) rules are unchanged.
  • 529 plan rules for tuition, books, supplies, and room & board remain the same—OBBB simply added more allowable uses (credentialing, loans, Roth rollovers), but the old rules are untouched.

7. Most Itemized Deduction Rules Stay the Same

  • Charitable contribution percentage-of-AGI limits (60%, 30%, 20%) remain the same.
  • Medical expense deduction threshold stays at 7.5% of AGI.
  • Casualty and theft loss deduction rules remain unchanged (still generally limited to federally declared disasters).

8. Depreciation Rules for Certain Assets Are Still Familiar

  • Section 179 and bonus depreciation eligibility requirements are unchanged—OBBB just raised limits and restored 100% bonus depreciation.
  • The property types that qualify remain the same (tangible personal property, certain improvements, etc.).

Why This Matters for Tax Planning

Knowing what didn’t change is just as important as knowing what did:

  • Your current planning strategies may still be valid without major adjustments.
  • You can build on familiar rules rather than start from scratch.
  • You can focus your attention—and your accountant’s time—on the provisions that did change and offer new opportunities.

Final Takeaway

The OBBB may be a massive bill, but it’s not a total rewrite of the tax code. Many core tax rules, deductions, and credits remain in place, giving you a stable foundation for long-term planning.

Want to review your current tax plan to see which OBBB changes apply to you and which strategies you can keep using?

📖 Read more about the OBBB: molentax.com/obbb-webinar-series/#blogs
 🎓 Attend a free webinar: molentax.com/obbb-webinar-series/#register
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