The One Big, Beautiful Act: Your Guide to the New Tax Landscape

Sweeping tax legislation changes the rules for individuals, businesses and charities. Learn what it means – and how to take action now.

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 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.

Donor-advised fund and private foundation management are provided by Bank of America Private Bank, a division of Bank of America N.A., Member FDIC and a wholly owned subsidiary of Bank of America Corporation.

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