On Money & More – September 2025

THE ONE BIG BEAUTIFUL BILL ACT (“OBBBA”) was signed into law on July 4th. There’s a lot to digest in this bill, which means it will certainly have an impact on households, small businesses, and our retirement plans right here in the Rogue Valley. Let’s break down some of the highlights that will impact those of us in Jacksonville focusing on wealth preservation and legacy planning:

Tax Rules Made Permanent—Perhaps the biggest impact from the bill is locking in much of the “existing” tax structure from the Tax Cuts and Jobs Act, passed during President Trump’s first term. While this has been described by many as a tax cut, in many cases it is more an extension of the previous tax cuts—most people’s taxes will likely look very similar to what they’ve been in the recent years. Taking as an example, the 24% bracket applies to married couples with taxable income between $206,701 (versus what was $201,051) and $384,600 (up from $383,900). For those managing IRA withdrawals, looking for Roth conversion opportunities, or trust distributions, this offers long-term predictability that makes tax planning much more dependable.

Here in Oregon, where there’s no sales tax but relatively high income tax, the increase in the SALT (State and Local Taxes) cap may provide a nice tax benefit for the next few years. Previously, SALT was capped at $10,000, but OBBBA increases this to $40,000 (with phaseouts over $500,000 of income) for the next 4 years. For those who don’t itemize, the standard deduction of $31,500 for married couples is slightly higher than the recent level of $30,000. Local business owners—think construction firms or boutique inns—will appreciate that the 20% qualified business income deduction for certain pass-through entities is now permanent.

Estate & Gifting Strategies—The federal estate and gift tax exemption was set to sunset back to pre-TCJA levels but was instead increased to $15 million per person for 2026. For families with appreciated vineyard property, timberland, or investment portfolios, this is significant. As with all tax changes, while they are considered “permanent,” they are not guaranteed forever. Always keep in mind that a future Congress could easily change these exemptions when considering your gift and estate planning.

Capital Investment & Depreciation—OBBBA preserves 100% bonus depreciation for certain assets. For example, a winery upgrading to $300,000 in new fermentation tanks can deduct the full cost in the first year instead of spreading it over a decade—freeing-up capital for expansion or debt reduction.

Bottom Line—The OBBBA is 870 pages long, and these are just a few of the highlights to consider. As business owners, taxpayers, financial advisors, and CPAs all gain more familiarity with the bill’s provisions, we will work to integrate these changes into financial plans. Having clarity on where tax rates will be for the foreseeable future gives us an opportunity to take action with a higher degree of confidence. If you want to talk through how the OBBBA might impact your financial goals, give us a call or stop in anytime! And if you want to see how 100% bonus depreciation can help create jobs and value, you can visit our expanded offices here at Bigham Knoll!

All opinions and data included in this commentary are as of August 12, 2025 and are subject to change without notice. The opinions and views expressed herein are of Cutler Investment Counsel, LLC and are not intended to be a forecast of future events, a guarantee of future results or individual investment advice including the asset allocation provided. Nothing herein should be construed as tax advice. This article is provided for informational purposes only and should not be considered a recommendation or solicitation to purchase or sell securities. This information should not be used as the sole basis to make any investment decision. The statistics have been obtained from sources believed to be reliable, but the accuracy and completeness of this information cannot be guaranteed. Investing involves risk, including the potential loss of principle. Neither Cutler Investment Counsel, LLC nor its information providers are responsible for any damages or losses arising from any use of this information.