For high-net-worth individuals, the final quarter of the year is more than just a countdown to the holidays; it’s a critical window for strategic tax planning. Your tax situation is complex and goes far beyond the standard deductions that apply to most taxpayers. At Lightening the Load, we understand that your wealth is unique, and we serve as your steadfast partners, accompanying you through the complexities of advanced tax strategies.
A recent tax bill has introduced significant changes that provide both new opportunities and new rules to navigate. Here’s what you need to know as you plan for year-end.
New Tax Bill Credits and Incentives to Leverage
The recent tax bill brings a new level of certainty to tax planning for high-net-worth individuals. While much of the legislation focuses on business, there are significant provisions that directly impact your personal tax situation.
- Estate and Gift Tax Exemptions: The new tax bill, signed into law on July 4, 2025, provides much-needed clarity on estate and gift tax planning. It permanently extends and enhances the federal estate, gift, and generation-skipping transfer (GST) tax exemptions. The exemption amount, which was previously set to revert to a much lower level, is now permanently set at $15 million per individual (and $30 million for married couples) beginning in 2026. This removes the urgency that many felt to make large gifts before the end of the year and provides a stable foundation for long-term estate planning.
- Expanded Annual Gift Exclusion: The new law increases the annual gift tax exclusion to $19,000 per person in 2025 (up from $18,000). This allows you to give away more each year without tapping into your lifetime exemption, a powerful tool for transferring wealth and managing your taxable estate over time.
- SALT Deduction Cap: For those who itemize, the cap on the State and Local Tax (SALT) deduction has increased from $10,000 to $40,000 for individuals, with a gradual phase-out for those with modified adjusted gross income over $500,000. While this change is temporary, lasting through 2029, it provides an immediate opportunity to deduct more of your state and local taxes, reducing your overall tax liability.
- Changes to Other Credits and Deductions: The tax bill also includes other important changes that may affect your personal tax strategy. This includes provisions like a new deduction for tips and overtime pay, and a temporary deduction for interest on new car loans. These changes can provide additional avenues for tax savings, and a full review of your tax situation is essential to identify which ones apply to you.
Your tax situation is a reflection of your unique financial landscape, and the strategies to manage it should be just as tailored. Navigating the nuances of new tax legislation and implementing advanced planning techniques requires a partner with deep knowledge and a forward-looking approach.
Each situation is unique. Your tax strategy should be too. Let us help you navigate the complexities of high-net-worth tax planning.
Let us lighten your load.
