Signed into law on July 4, 2025, the One Big, Beautiful Act introduces sweeping changes for individual taxpayers, businesses and charitable organizations. This landmark legislation makes permanent several benefits first introduced under the 2017 Tax Cuts and Jobs Act—while adding new provisions that could significantly impact your financial planning.
Key Highlights of the Legislation
- Extension of 2017 Tax Cuts
Permanent provisions from the 2017 Tax Cuts and Jobs Act - New Tax Breaks for Hourly Workers
No tax on tips or overtime pay - Pro-Business Incentives
Enhanced deductions for partnerships, S corporations and sole proprietors
Charitable Giving Updates (beginning in 2026)
- Limited charitable deductions for non-itemizers
- New floors and haircuts on itemized charitable deductions
What Does This Mean for You?
The impact depends on your income level, income type and where you live. Explore strategies for individuals, business owners and philanthropists.
Plan Ahead: Key Charitable Deduction Considerations
- Itemizers:
Accelerate charitable contributions in 2025 to avoid upcoming changes/limitations
Consider bunching charitable contributions to reach itemization minimums and benefits - Non-itemizers:
Delay charitable gifts until next year to take advantage of new deductions
What’s Next?
Whether you’re an individual taxpayer, business owner, philanthropist or nonprofit, understanding these changes can help you make informed decisions.
Contact your advisor to help you navigate the new landscape and optimize your charitable giving plan.
IMPORTANT DISCLOSURES
Opinions are as of the date of this webcast – 8/28/2025 and are subject to change.
This material does not take into account a client’s particular investment objectives, financial situations or needs and is not intended as a recommendation, offer or solicitation for the purchase or sale of any security or investment strategy. Merrill offers a broad range of brokerage, investment advisory and other services. There are important differences between brokerage and investment advisory services, including the type of advice and assistance provided, the fees charged, and the rights and obligations of the parties. It is important to understand the differences, particularly when determining which service or services to select. For more information about these services and their differences, speak with your advisor.
This information should not be construed as investment advice and is subject to change. It is provided for informational purposes only and is not intended to be either a specific offer by Bank of America, Merrill or any affiliate to sell or provide, or a specific invitation for a consumer to apply for, any particular retail financial product or service that may be available.
The Chief Investment Office (CIO) provides thought leadership on wealth management, investment strategy and global markets; portfolio management solutions; due diligence; and solutions oversight and data analytics. CIO viewpoints are developed for Bank of America Private Bank, a division of Bank of America, N.A., (“Bank of America”) and Merrill Lynch, Pierce, Fenner & Smith Incorporated (“MLPF&S” or “Merrill”), a registered broker-dealer, registered investment adviser, Member SIPC and a wholly owned subsidiary of Bank of America Corporation (“BofA Corp.”).
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