This is the third and final installment of our discussion with Brett Layton, which explores key updates to tax laws, including estate tax limits, the alternative minimum tax, expanded uses of 529 plans, new “Trump accounts” for children’s savings, and changes to clean energy credits and business taxes. It emphasizes the importance of understanding these updates for effective financial and tax planning.

Takeaways

• Estate tax limits are increasing, providing more leeway for wealth transfer.
• Paying income taxes can strategically reduce your taxable estate.
• The estate planning community has been advocating for higher exemptions.
• 529 plans are evolving to cover a broader range of educational expenses.
• Trump accounts allow children to start saving without needing earned income.
• The government will contribute to Trump accounts for eligible children.
• Bonus depreciation for businesses has returned to 100%.
• The first $15 million of capital gains from qualified small business stock is tax-free.
• Understanding these tax changes is crucial for effective financial planning.
• The complexity of tax laws continues to increase, necessitating careful planning.

Chapters

00:00 Estate Tax Changes and Implications 07:08 Alternative Minimum Tax and Its Impact 11:25 Expanded 529 Plan Eligibility 17:19 Introduction of Trump Accounts 29:42 Clean Energy Credits and Business Tax Changes

Links

Explore the New RetireWithStyle.com! We’ve launched a brand-new home for the podcast! Visit RetireWithStyle.com to catch up on all our latest episodes, explore topics by category, and send us your questions or ideas for future episodes. If there’s something you’ve been wondering about retirement, we want to hear it!

The Retirement Planning Guidebook: 2nd Edition has just been updated for 2025! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/

This episode is sponsored by McLean Asset Management. Visit https://www.mcleanam.com/retirement-income-planning-llm/ to download McLean’s free eBook, “Retirement Income Planning”

The conversation explores key tax topics, including below-the-line deductions, charitable contributions, mortgage insurance deductions, gambling taxes, and the taxation of Social Security benefits. It also discusses potential changes to Affordable Care Act subsidies and highlights the importance of proactive tax planning to navigate these complexities.

Takeaways

• The state and local tax deduction has seen significant changes.
• Charitable contributions now have a new floor for deductions.
• Mortgage insurance premiums are deductible under certain conditions.
• Gambling winnings are taxed differently than before.
• Social Security benefits remain taxable under existing rules.
• The Affordable Care Act subsidies may change significantly in 2026.
• Tax planning is crucial to avoid unexpected liabilities.
• Itemized deductions can be complex and require careful calculation.
• Understanding AGI is essential for tax deductions.
• Changes in tax laws can impact charitable giving behavior.

Chapters

00:00 State and Local Tax Deductions: Changes and Challenges 03:59 Roth Conversions and Tax Brackets 05:45 Below-the-Line Deductions and Itemization 06:42 Charitable Donations and Tax Changes 12:21 Mortgage Insurance Premiums and Deductions 15:20 Gambling Losses and Tax Implications 25:40 Social Security Benefits and Taxation 30:59 Affordable Care Act Subsidies and Changes

Links

Explore the New RetireWithStyle.com! We’ve launched a brand-new home for the podcast! Visit RetireWithStyle.com to catch up on all our latest episodes, explore topics by category, and send us your questions or ideas for future episodes. If there’s something you’ve been wondering about retirement, we want to hear it!

The Retirement Planning Guidebook: 2nd Edition has just been updated for 2025! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/

This episode is sponsored by Retirement Researcher https://retirementresearcher.com/. Download their free eBook, 8 Tips to Becoming A Retirement Income Investor at retirementresearcher.com/8tips

In this episode of Retire with Style, hosts Alex Murguia and Wade Pfau are joined by CPA Brett Leyton to discuss the new tax provisions introduced in the One Big Beautiful Bill Act. The conversation covers essential topics such as federal income tax brackets, standard deductions, and various new below-the-line deductions that can benefit taxpayers, especially seniors. The episode delves into the complexities of tax planning, emphasizing the importance of strategic planning in light of the new legislation. Listeners will gain insights into how these changes can impact their financial planning and tax strategies moving forward.

Takeaways

• Tax planning is crucial for all income levels.
• The complexity of tax rules requires comprehensive planning.
• New tax brackets simplify some aspects of tax planning.
• Standard deductions have significantly increased for 2025.
• Seniors can benefit from additional below-the-line deductions.
• Qualified business income deductions are now permanent.
• New deductions for tips and overtime pay are introduced.
• Auto loan interest deductions have specific requirements.
• Charitable contributions can be deducted even if not itemizing.
• Understanding phase-outs is essential for effective tax planning.

Chapters

00:00 Introduction to Tax Planning and the One Big Beautiful Bill Act 02:54 Understanding Federal Income Tax Brackets 06:11 New Below-the-Line Deductions: Age 65 Plus 09:07 Qualified Business Income and Its Implications 11:51 Exploring Qualified Tips and Overtime Pay Deductions 14:59 Auto Loan Interest Deductions Explained 17:45 Charitable Contributions for Standard Deduction Filers 21:03 State and Local Tax Deductions: Changes and Challenges

Links

Explore the New RetireWithStyle.com! We’ve launched a brand-new home for the podcast! Visit RetireWithStyle.com to catch up on all our latest episodes, explore topics by category, and send us your questions or ideas for future episodes. If there’s something you’ve been wondering about retirement, we want to hear it!

The Retirement Planning Guidebook: 2nd Edition has just been updated for 2025! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/

This episode is sponsored by McLean Asset Management. Visit https://www.mcleanam.com/retirement-income-planning-llm/ to download McLean’s free eBook, “Retirement Income Planning”