The One Big Beautiful Bill (OBBB) has reshaped the tax landscape for individuals, families, and business owners. While many changes take effect in 2025, there are key moves you can make before year-end to set yourself up for maximum tax savings next year.

At Molen & Associates, we’ve compiled our Top 10 OBBB Tax Planning Tips so you can take proactive steps before the calendar flips.

1. Review Your Income for Phaseout Triggers

Many of the OBBB’s new or expanded benefits—like the $6,000 senior deduction, SALT cap increase, tips/overtime exemption, and child tax credit—start phasing out at specific income levels.

• Consider deferring income into 2025 or accelerating deductions this year to stay under key thresholds.
• Use retirement plan contributions, HSA funding, or business deductions to help manage your Modified AGI.

2. Plan Asset Purchases to Maximize Bonus Depreciation & Section 179

Starting January 19, 2025, bonus depreciation is restored to 100% and Section 179 limits increase to $2.5 million, with a $4 million phaseout threshold.

• If you’re a business owner, time large equipment or vehicle purchases for early 2025 to get the biggest write-off possible.
• Compare Section 179 vs. bonus depreciation for flexibility.

3. Map Out Your SALT Deduction Strategy

The SALT deduction cap increases from $10,000 to $40,000 for 2025–2029, with phaseouts at high incomes.

• In high-tax states, coordinate property tax payments and state estimated tax payments to maximize the deduction once the new cap takes effect.

4. Consider Education & Training Investments

The OBBB expands 529 plan uses to include career credentialing, licenses, and even student loan repayment.

• If you’ve been delaying a career-related certification, 2025 may be the time to use 529 funds for it.
• Plan ahead if you have unused 529 balances that could roll to a Roth IRA after the 15-year holding requirement.

5. Prep for the Tips & Overtime Exemption Window

From 2026–2028, qualifying tips and overtime income can be tax-free up to certain limits.

• If you work in hospitality, healthcare, or other overtime-heavy industries, plan your work schedule and income so you can maximize this benefit during those years.

6. Check Your Vehicle Purchase Timeline

The U.S. Auto Loan Interest Deduction (up to $10,000/year) applies from 2025–2028 for new, U.S.-assembled vehicles, with income phaseouts.

• If you’re close to buying a vehicle, delaying until 2025 could unlock the deduction—especially for personal-use cars that normally wouldn’t qualify for interest write-offs.

7. Plan Charitable Giving with New Deduction Rules

From 2026 onward, non-itemizers can deduct up to $1,000 (single) or $2,000 (married) in charitable contributions, subject to a 0.5% AGI floor.

• If you itemize and have higher income, consider bunching donations in years when the 2% high-income limitation doesn’t apply to get full value from your gifts.

8. Use the $6,000 Senior Deduction While It’s Here

For 2025–2028, taxpayers age 65+ can take an additional $6,000 deduction ($12,000 if both spouses qualify), with phaseouts starting at $75,000 single / $150,000 joint.

• If you’re nearing retirement age, coordinate income and Roth conversions so you don’t lose this deduction to phaseouts.

9. Position for Clean Energy Credits

Residential clean energy credits (solar, battery storage, etc.) remain at up to 30% of qualifying costs.

• If you’re considering an installation, align timing with other deductions and credits for the best combined benefit.

10. Keep Detailed Records for Digital Payment Income

The OBBB restores the $20,000 and 200-transaction threshold for 1099-K forms starting in 2025.

• Even if you don’t get a form, taxable income from sales or side gigs must still be reported—good recordkeeping ensures accuracy and avoids surprises.

Final Takeaway

The OBBB offers more opportunities—and more moving parts—than most tax bills in recent years. The best way to benefit is to plan before you act, especially with income timing, purchase decisions, and new deduction rules.

Want a personalized OBBB tax planning session before year-end?

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