Tax Talk: Key Takeaways from the "One Big Beautiful Bill"

Introduction

Hosted by David Rath & Sarah Dorsey, CPA

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With major tax changes on the horizon, David and Sarah break down the proposed "One Big Beautiful Bill" and its potential impact on individuals, families, and business owners. Here’s what you need to know.

1. Individual Tax Changes: Lower Rates, Higher Exemptions

  • Extended Tax Cuts: The bill aims to make TCJA (2017) rates permanent, preventing a 2025 sunset that would raise the top bracket from 37% to 39.6%.

  • Estate Tax Relief: The federal estate/gift exemption (currently ~$30M for couples) may stay intact—avoiding a 50% cut. (Note: State limits, like NY’s, remain lower.)

  • Family-Friendly Credits:

    • Child Tax Credit stays at $2,000 ($1,000 refundable).

    • Charitable Deduction: $300 "backdoor" deduction for standard filers.

Key Point: Roth conversions become more strategic with locked-in lower rates.
Actual Quote:
"These lower tax brackets make [Roth conversions] beneficial now... You’re accelerating tax into a period with lower rates." —Sarah Dorsey

2. Business Focus: Shifts in Deductions & Credits

  • Pass-Through Entity Tax: May end for service businesses (e.g., CPAs, investment firms) but expands for manufacturers.

  • Key Incentives:

    • Section 179: Immediate expensing for equipment (up to ~$2M).

    • R&D Credits: Enhanced for innovation-driven industries.

    • Opportunity Zones: Revitalization investments retain tax perks.

Key Point: Service businesses should reassess structures to preserve deductions.
Actual Quote:
"I was surprised [the bill] targets service businesses... Planning around income thresholds will be critical." —Sarah Dorsey

3. Planning Opportunities: Act Before 2026

  • Roth Conversions: Accelerate while rates are low.

  • Estate Planning: Leverage federal exemptions (e.g., gifting) to minimize state taxes (NY has no gift tax).

  • Business Owners: Revisit entity structure and equipment purchases to maximize deductions.

Key Point: Proactive planning is essential—don’t wait for deadlines.
Actual Quote:
"We have four years to plan... making changes now based on what we know is pretty amazing." —David Rath

Final Takeaways

  1. Individuals: Protect wealth with Roth conversions and gifting strategies.

  2. Businesses: Adapt to changing pass-through rules; capitalize on R&D credits.

  3. Stay Flexible: Final bill details may shift—consult your advisor to tailor strategies.

Next Steps: Schedule a call to discuss how these changes impact your unique situation.

Offices

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Suite 207B
Saratoga Springs, NY 12866

Florida

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contact

Phone: 518-583-4050
Fax: 518-587-5303
Email: info@contwealth.com  

Continuum Wealth Advisors, LLC is a Registered Investment Advisor registered through the Securities & Exchange Commission. Continuum Wealth Advisors, LLC is a proud member of the both the Saratoga County Regional Chamber of Commerce and the Adirondack Chamber of Commerce.

Past performance is not necessarily indicative of future returns and the value of investments and the income derived from them can go down as well as up. Future returns are not guaranteed and a loss of principal may occur. All written content on this site is for informational purposes only. Opinions expressed herein are solely those of Continuum Wealth Advisors, LLC and our editorial staff. Material presented is believed to be from reliable sources, however, we make no representations as to its accuracy or completeness. All information and ideas should be discussed in detail with your individual advisor prior to implementation. Fee-based financial planning and investment advisory services are offered by Continuum Wealth Advisors, LLC, a Registered Investment Advisor in the State of New York. Insurance products and services are offered through Continuum Wealth Advisors, LLC, as well. The presence of this website shall in no way be construed or interpreted as a solicitation to sell or offer to sell investment advisory services to any residents of any state other than the State of New York or where otherwise legally permitted.

© 2025 Copyright

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Offices

New York

18 Division Street
Suite 207B
Saratoga Springs, NY 12866

Florida

P.O. Box 113
Venice, FL 34284

contact

Phone: 518-583-4050
Fax: 518-587-5303
Email: info@contwealth.com  

Continuum Wealth Advisors, LLC is a Registered Investment Advisor registered through the Securities & Exchange Commission. Continuum Wealth Advisors, LLC is a proud member of the both the Saratoga County Regional Chamber of Commerce and the Adirondack Chamber of Commerce.

Past performance is not necessarily indicative of future returns and the value of investments and the income derived from them can go down as well as up. Future returns are not guaranteed and a loss of principal may occur. All written content on this site is for informational purposes only. Opinions expressed herein are solely those of Continuum Wealth Advisors, LLC and our editorial staff. Material presented is believed to be from reliable sources, however, we make no representations as to its accuracy or completeness. All information and ideas should be discussed in detail with your individual advisor prior to implementation. Fee-based financial planning and investment advisory services are offered by Continuum Wealth Advisors, LLC, a Registered Investment Advisor in the State of New York. Insurance products and services are offered through Continuum Wealth Advisors, LLC, as well. The presence of this website shall in no way be construed or interpreted as a solicitation to sell or offer to sell investment advisory services to any residents of any state other than the State of New York or where otherwise legally permitted.

© 2025 Copyright

Designed by Slices.Design

Offices

New York

18 Division Street
Suite 207B
Saratoga Springs, NY 12866

Florida

P.O. Box 113
Venice, FL 34284

contact

Phone: 518-583-4050
Fax: 518-587-5303
Email: info@contwealth.com  

Continuum Wealth Advisors, LLC is a Registered Investment Advisor registered through the Securities & Exchange Commission. Continuum Wealth Advisors, LLC is a proud member of the both the Saratoga County Regional Chamber of Commerce and the Adirondack Chamber of Commerce.

Past performance is not necessarily indicative of future returns and the value of investments and the income derived from them can go down as well as up. Future returns are not guaranteed and a loss of principal may occur. All written content on this site is for informational purposes only. Opinions expressed herein are solely those of Continuum Wealth Advisors, LLC and our editorial staff. Material presented is believed to be from reliable sources, however, we make no representations as to its accuracy or completeness. All information and ideas should be discussed in detail with your individual advisor prior to implementation. Fee-based financial planning and investment advisory services are offered by Continuum Wealth Advisors, LLC, a Registered Investment Advisor in the State of New York. Insurance products and services are offered through Continuum Wealth Advisors, LLC, as well. The presence of this website shall in no way be construed or interpreted as a solicitation to sell or offer to sell investment advisory services to any residents of any state other than the State of New York or where otherwise legally permitted.

© 2025 Copyright

Designed by Slices.Design