The new OBBBA tax law is packed with hidden opportunities—and traps. Here are a few highlights you should review before year-end.

🌟 1. SALT Deduction Cap SOARS to $40,000

Biggest change in years!

• New $40,000 SALT deduction cap for 2025 (up from $10,000!) for filers earning $500K or less.
• Above $500K? Your SALT cap shrinks by 30% of income over $500K—and drops back to $10K at $600K.

Strategy alert:

• Business owners & investors: consider deferring income into 2026 to qualify for the bigger cap.
• Live in a no-income-tax state? Prepay 2026 property taxes to boost your deduction.

❤️ 2. Charitable Deduction Shake-Up—The Clock Is Ticking

Massive changes hit next year. 2025 may be your last chance for full deductions.

• Starting 2026:
  • New 0.5% AGI floor before donations are deductible.
  • New 35% cap on tax benefit—even for high-bracket taxpayers.
• Comparison: This year: A $100K donation gives you up to $37K deductible. Next year? Only $33,250 for high earners.

Smart moves now:

• Accelerate multi-year giving into 2025.
• Use a donor-advised fund to claim the deduction now.
• Donate highly appreciated stock for extra tax savings.

Age 70½+? Qualified charitable distributions reduce taxable RMDs and avoid the new limits.

New in 2026: Even standard-deduction filers get a small charitable deduction ($1K single / $2K couples).

🏥 3. Health Savings Accounts Open to Millions More—But Prep Now

2026 will massively expand HSA eligibility, especially for ACA policyholders.

• HSAs open to ACA Bronze/Catastrophic plans + subscription-based primary care.
• Open enrollment for an ACA plan is happening NOW (through Jan. 15).
• Why it matters: HSAs are triple tax advantaged—tax-free in, tax-free growth, tax-free out.

2025 contribution limits:

• $4,300 single
• $8,550 family
• +$1,000 catch-up at age 55+

Pro tip: Pay medical bills out of pocket and let your HSA grow tax-free for decades.

⚠️ 4. The AMT Is Back—and It’s Coming for More People

OBBBA revives the Alternative Minimum Tax for higher earners.

• Most affected: $400K–$600K earners and anyone exercising ISOs.

Starting 2026:

• AMT exemption phases out earlier ($1M couples / $500K singles).
• Exemption phases out twice as fast as before.
• The boosted 2025 SALT cap may push more filers into AMT.

Year-end moves:

• Run your AMT projections NOW.
• Possibly accelerate income to offset large deductions.
• ISO holders: Split exercises across 2025 & 2026 to avoid AMT spikes.

Beware: Higher income can trigger higher Medicare premiums—run the numbers carefully.

☀️ 5. Last Call for 2025 Clean Energy Credits

Time is almost up on thousands in home-energy tax perks.

• Up to $3,200 in credits still available for 2025 only.
• Qualifying upgrades include:
  • Exterior doors/windows
  • Solar
  • Heat pumps
  • Water heaters
  • Biomass systems

Important: Equipment must be installed and operational by Dec. 31—purchases alone don’t count!

🧾 6. 100% Bonus Depreciation Is BACK

Huge win for business owners & rental property investors.

• You can once again write off up to 100% of eligible asset purchases in the year bought.
• Applies to assets such as:
  • Rental property appliances
  • Office equipment
  • Business vehicles
• Eligible for items with a useful life of 20 years or less.
• Effective for purchases after Jan. 19, 2025.
• Can be claimed even if you aren’t profitable. Massive planning opportunity.

🎓 7. 529 Plans Get More Flexible

Your education savings account just got a major upgrade.

• K–12 expenses now include:
  • Test fees
  • Educational materials
  • Tutoring
• Benefit limits:
  • Up to $10K in 2025
  • Rises to $20K in 2026
• 529s now cover credentialing & licensing programs—CPA, fitness trainer, law, and more.
• Warning: Some states haven’t adopted changes yet. Check your plan’s state rules.

🔍 8. Portfolio Gains/Losses Review — Your Year-End Tax Tune-Up

Markets have been choppy—making 2025 the perfect time to optimize your tax efficiency.

• Why it matters: Only gains/losses realized by Dec. 31 affect your 2025 taxes.

Smart moves:

• Consider if you should harvest losses to offset gains and reduce your tax bill.
• Realize gains strategically if you're in a lower bracket this year.
• Review mutual fund capital-gain distributions to avoid surprise taxes.
• Rebalance overweight positions with taxes in mind.

Retirees: Pair RMD-driven sales with harvested losses to reduce taxes.

Disclosures: This is not an offer or solicitation for the purchase or sale of any security or asset. While the information presented herein is believed to be reliable, no representation or warranty is made concerning its accuracy. The views expressed are those of NCM Capital Management, LLC and are subject to change at any time based on market and other conditions and NCM does not undertake to update or supplement its newsletter or any of the information contained therein. Past performance may not be indicative of future results.  Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will be profitable. There is no guarantee that the investment strategies discussed above will work under all market conditions or are suitable for all investors and each investor should evaluate their ability to invest long-term, especially during periods of downturn in the market. Investors should consult their investment professional prior to making an investment decision. Investment advisory services are offered through NCM Capital Management, LLC, an SEC-registered wealth advisory firm domiciled in New Jersey. This communication is not to be construed or interpreted as a solicitation or offer to sell investment advisory services.  For additional information about NCM Capital Management, LLC, you may request a copy of our disclosure statement as set forth on Form ADV. Readers are encouraged to consult with their own professional advisers, including investment advisers and tax/legal advisors. NCM Capital Management, LLC does not provide legal or tax advice. NCM Capital Management, LLC can assist in determining a suitable investing approach for individuals, which may or may not resemble the strategies outlined herein.