10 Insider Secrets to Expert-Led Tax Minimization: The Definitive 2026 Wealth Protection Guide

The 10 “Insider” Strategies for 2026: A Snapshot

Before diving into the exhaustive mechanics, legal frameworks, and implementation protocols, here is the master list of the ten most powerful tax minimization strategies available to high-net-worth individuals and business owners in the post-OBBBA (One Big Beautiful Bill Act) era.

1. The “One Big Beautiful” Labor Arbitrage: Leveraging the new “No Tax on Overtime” and “No Tax on Tips” provisions to restructure closely-held business compensation.
2. The QSBS Multiplier ($75M+ Tax-Free): Utilizing the expanded Section 1202 exclusions, the new $75 million asset cap, and “stacking” via non-grantor trusts.
3. The Real Estate “Time Machine” (100% Bonus Depreciation): combining Cost Segregation Studies with the reinstated 100% bonus depreciation and Spousal Real Estate Professional Status (REPS).
4. The Hydrocarbon Shield (Oil & Gas IDCs): erasing active income tax liability through Intangible Drilling Costs (IDCs) and the “Working Interest” exception to passive loss rules.
5. The Corporate Residence Maneuver (The Augusta Rule): Renting your personal home to your S-Corporation for 14 days tax-free, shifting income from a taxable entity to a tax-exempt pocket.
6. The Family Payroll & “Trump Account” Matrix: Hiring minor children to utilize the standard deduction and funding the newly created, tax-privileged Trump Accounts for generational wealth.
7. The Mega-Backdoor Retirement Vault: Bypassing standard contribution limits to stuff up to $70,000+ annually into Roth vehicles via 401(k) after-tax spillover.
8. The Insurance Wrapper (PPLI): converting tax-inefficient hedge fund returns into tax-free wealth via Private Placement Life Insurance.
9. The Estate Freeze (Rolling GRATs): locking in asset values and transferring appreciation to heirs tax-free using Grantor Retained Annuity Trusts.
10. The Audit-Proof Fortress: navigating the “Dirty Dozen” traps, specifically avoiding syndicated easements and adhering to the new Crypto 1099-DA reporting regime.

The Dawn of the “Permanent” Era

On July 4, 2025, the fiscal architecture of the United States was fundamentally rewritten. For nearly a decade, wealth planning was dominated by “sunset anxiety”—the fear that the favorable provisions of the 2017 Tax Cuts and Jobs Act (TCJA) would expire at the end of 2025, reverting the country to higher pre-2018 tax rates. The enactment of the One Big Beautiful Bill Act (OBBBA) ended this uncertainty. By making the TCJA’s individual income tax rates, standard deductions, and estate tax exemptions permanent, the legislation shifted the focus from defensive “sunset planning” to offensive “legacy construction”.

However, this stability comes with a complex new overlay of incentives. The OBBBA is not merely a continuation of the status quo; it is a radical restructuring of specific economic behaviors. It creates aggressive incentives for domestic energy production, labor participation (overtime/tips), and small business equity (QSBS), while simultaneously closing loopholes on electric vehicle credits and intensifying scrutiny on “abusive” shelters like syndicated easements.

For the high-net-worth investor, the 2025 tax return (filed in 2026) and the 2026 tax year represent a singular window of opportunity. The convergence of reinstated 100% bonus depreciation , the new $40,000 SALT cap , and the rollout of Trump Accounts requires a complete re-evaluation of existing strategies. This report provides the expert-level “insider secrets”—the mechanisms used by family offices to convert these legislative changes into distinct competitive advantages.

Secret #1: The “One Big Beautiful” Labor Arbitrage

The most headline-grabbing feature of the OBBBA was the introduction of “No Tax on Tips” and “No Tax on Overtime.” While publicly marketed as relief for the working class, these provisions create sophisticated planning opportunities for closely-held business owners who can legally restructure compensation models to fit these definitions.

The “No Tax on Overtime” Mechanism

For tax years 2025 through 2028, the OBBBA allows individuals to deduct the “premium” portion of qualified overtime pay. The “premium” is defined as the compensation paid above the regular rate—typically the “half” in “time-and-a-half.”

Strategic Restructuring for Business Owners

In closely-held S-Corporations, owners often pay themselves a salary to meet “Reasonable Compensation” requirements. With the new overtime deduction, there is a strategic imperative to evaluate if a portion of this compensation can be structured as FLSA-compliant overtime.

• The Deduction: The deduction is capped at $12,500 annually for single filers and $25,000 for joint filers.
• The Phase-Out: The benefit is not universal. It phases out for taxpayers with Modified Adjusted Gross Income (MAGI) over $150,000 (single) or $300,000 (joint).

Insight: The “Cliff” Danger and Income Smoothing. Because the deduction phases out, business owners earning near the $300,000 mark (joint) face a high effective marginal rate in the phase-out zone. The strategy, therefore, involves aggressive income smoothing. By maximizing pre-tax 401(k) deferrals ($23,500+) or utilizing defined benefit plans to lower MAGI below $300,000, a couple can preserve the full $25,000 overtime deduction. This effectively shields $25,000 of income from federal tax, creating a specific arbitrage where the “cost” of paying overtime is subsidized by the tax savings.

The “No Tax on Tips” Deduction

Similarly, qualified tips are now deductible up to $25,000 per taxpayer. This provision is strictly regulated:

• Eligibility: It applies only to occupations listed by the IRS as “customarily and regularly receiving tips”.
• Reporting: Tips must be reported on W-2 or 1099 to qualify. The days of “under-the-table” cash tips are effectively over, as reporting them now yields a tax deduction rather than a tax liability.

Warning: Do not attempt to reclassify executive bonuses or consulting fees as “tips.” The IRS has been mandated to publish a list of qualifying occupations. However, for families owning hospitality venues, salons, or concierge services, ensuring that family members working in these roles rigorously report tips is now a tax-minimization strategy.

The Car Loan Interest Arbitrage

In a move to stimulate the domestic auto industry, the OBBBA allows for the deduction of interest on loans for qualified vehicles purchased for personal use.

• Cap: Interest is deductible up to $10,000 annually.
• Conditions: The vehicle must be purchased (not leased) between 2025 and 2028.
• Arbitrage Opportunity: High-net-worth individuals typically pay cash for luxury vehicles to avoid high interest rates. However, if one can secure auto financing at 6-7% and deduct the interest, the effective after-tax interest rate drops significantly (potentially to ~4%). If the cash that would have been used for the car is instead invested in a portfolio earning 8-10%, the taxpayer creates a positive arbitrage spread. The deduction effectively subsidizes the leverage used to maintain liquidity.

The OBBBA Labor & Consumer Deductions (2025-2028)

Provision	Max Deduction (Single)	Max Deduction (Joint)	MAGI Phase-out Threshold	Key Restriction
Overtime Pay	$12,500	$25,000	$150k / $300k	Must be FLSA “premium” pay
Qualified Tips	$25,000	$50,000*	$150k / $300k	Must be “customary” occupation
Car Loan Interest	$10,000	$20,000*	$100k / $200k	Purchase only (No leases)
Senior Deduction	$6,000 (Age 65+)	$12,000 (Both 65+)	$75k / $150k	Additional to Standard Ded.
*Joint amounts assume both spouses qualify individually for tips/loans.

Secret #2: The QSBS Multiplier ($75M+ Tax-Free)

Section 1202 of the Internal Revenue Code (Qualified Small Business Stock or QSBS) has long been the “Holy Grail” for founders and venture investors. The OBBBA has supercharged this provision, expanding eligibility and liquidity in ways that fundamentally alter the venture capital landscape starting July 5, 2025.

The New $75 Million Asset Cap

Historically, a company could not issue QSBS if its gross assets exceeded $50 million. This “cliffs” many successful startups during their Series B or Series C rounds. The OBBBA raised this threshold to $75 million.

• Impact: Companies that were previously “aged out” of QSBS eligibility can now issue new rounds of qualified stock. Investors who were forced to accept non-qualified stock in mid-stage rounds can now demand QSBS treatment, potentially saving millions in future capital gains taxes.

The “Tiered” Liquidity Revolution

Perhaps the most significant change is the relaxation of the holding period. Previously, QSBS was an “all-or-nothing” bet: sell before 5 years, and you get 0% benefit. For stock acquired after July 4, 2025, a new tiered system applies :

• < 3 Years: 0% Exclusion.
• 3 to < 4 Years: 50% Exclusion.
• 4 to < 5 Years: 75% Exclusion.
• 5+ Years: 100% Exclusion.

Insight: This reduces the “illiquidity premium.” Founders and investors often hold onto assets purely to hit the 5-year mark, even when market conditions suggest selling. The ability to capture a 75% exclusion after just 4 years allows for more agile exit strategies without a catastrophic tax penalty.

The “Stacking” Strategy: Breaking the $10M Cap

The standard exclusion is capped at the greater of $10 million or 10x the basis. For “Unicorn” founders, a $10 million exclusion is insufficient. The “Insider” strategy to bypass this is Stacking.

• The Mechanism: The $10 million cap applies “per taxpayer.” By creating multiple non-grantor trusts (e.g., separate trusts for each child) and gifting stock to them before a liquidity event, each trust becomes a distinct taxpayer with its own $10 million (or $15 million under new inflation adjustments) cap.
• 2026 Math: The OBBBA raised the per-issuer cap to $15 million for stock issued post-July 2025.
  • Scenario: A founder anticipates a $60 million exit.
  • Action: They gift shares worth $1 million (basis) to three separate trusts for their children.
  • Result:
    • Founder claims $15M exclusion.
    • Spouse claims $15M exclusion (if filing separately or structured correctly).
    • Trust 1 claims $15M exclusion.
    • Trust 2 claims $15M exclusion.
    • Total Tax-Free Gain: $60 Million.

Caveat: The “Qualified Trade or Business” exclusions remain. Businesses in health, law, engineering, architecture, and consulting are excluded. However, aggressive positioning often allows firms to be classified as “technology companies” serving those industries (e.g., a “legal tech” platform rather than a “law firm”).

Secret #3: The Real Estate “Time Machine” (100% Bonus Depreciation)

Real estate is the only asset class that allows investors to legally create “paper losses” that exceed their cash investment, shielding other income from taxation. The OBBBA restored the most potent fuel for this engine: 100% Bonus Depreciation.

The Return of 100% Expensing

Under the TCJA sunset provisions, bonus depreciation had degraded to 60% in 2024 and 40% in 2025. The OBBBA reinstated 100% bonus depreciation for property acquired after January 19, 2025. This allows investors to instantly write off the full value of eligible short-life assets in the first year.

The Engine: Cost Segregation Studies (CSS)

A Cost Segregation Study involves hiring engineers to analyze a building and reclassify components from “real property” (27.5 or 39-year depreciation) to “personal property” (5, 7, or 15-year depreciation).

• 5-Year Assets: Carpeting, specialized electrical, decorative lighting, removable partitions.
• 15-Year Assets: Land improvements, sidewalks, fencing, landscaping.
• The Math: On a $5 million commercial building, a CSS might reclassify 30% ($1.5 million) as short-life property. With 100% bonus depreciation, the investor takes a $1.5 million tax deduction in Year 1.

The Key: Real Estate Professional Status (REPS)

Normally, rental losses are “passive” and cannot offset “active” income (like W-2 wages or business profits). The “Insider” secret to unlocking these massive CSS losses against your salary is Real Estate Professional Status (REPS).

To qualify, a taxpayer must meet two strict tests :

1. The >50% Test: More than 50% of your personal service hours must be in real property trades or businesses.
2. The 750-Hour Test: You must perform more than 750 hours of service in real property trades in which you materially participate.

The “Spousal Shield” Strategy:

High-income earners with full-time jobs (e.g., doctors, CEOs) usually cannot meet the >50% test. However, spouses can. If one spouse earns the high W-2 income and the other spouse manages the rental portfolio (meeting the 750-hour and >50% tests), the couple (filing jointly) qualifies as Real Estate Professionals. The $1.5 million loss from the building flows through to the joint return, wiping out the tax liability on the CEO’s salary.

Material Participation Nuance: It is not enough to just “be” a professional; you must materially participate in each rental activity. To avoid having to meet the 500-hour test for every single property, you must file a grouping election (Reg. §1.469-9(g)) to treat all rental activities as a single unit. Failing to attach this election to the tax return is a common amateur mistake that leads to audit failure.

Secret #4: The Hydrocarbon Shield (Oil & Gas IDCs)

For the high-income earner who cannot qualify for Real Estate Professional Status (e.g., a single professional working 60 hours/week), Oil & Gas investing is the “break glass in case of emergency” solution. It is virtually the only investment that allows for the offset of active W-2 income without the “active participation” requirements of real estate.

The Mechanics of Intangible Drilling Costs (IDCs)

Drilling a well requires massive upfront capital. The tax code allows investors to classify approximately 65% to 80% of these costs as “Intangible Drilling Costs” (IDCs)—labor, fuel, chemicals, and rig time.

• The Benefit: Unlike real estate (which depreciates over decades), IDCs can be 100% deducted in the year of investment.
• The Exception: Section 469(c)(3) of the IRC specifically exempts “Working Interests” in oil and gas properties from passive loss rules. This means the losses generated by IDCs are considered active losses and can offset W-2 income directly, provided the investor holds the interest directly or through an entity that does not limit liability (like a General Partnership).

The “March 31st” Rule: Retroactive Planning

This strategy offers a unique timing advantage. An investor can invest funds in December 2025 and claim the full IDC deduction on their 2025 tax return, as long as the drilling of the well commences by March 31, 2026. This allows for “after-the-buzzer” tax planning when end-of-year income turns out to be higher than expected.

Percentage Depletion: Tax-Free Income

Once the well is producing, the tax benefits continue. Small producers (independent producers) are eligible for Percentage Depletion, which allows a flat deduction of 15% of the gross income from the property. This deduction is not tied to the cost basis of the well; it is a statutory allowance that effectively renders 15% of the oil revenue tax-free in perpetuity.

Real Estate vs. Oil & Gas Tax Benefits

Feature	Real Estate (Bonus Depr.)	Oil & Gas (IDCs)
Upfront Deduction	~20-30% of asset value (via CSS)	~65-85% of investment
Offset Active Income?	Only with REPS status	Yes (Working Interest)
Recapture on Sale?	Yes (Depreciation Recapture)	Yes (IDC Recapture)
Income Shield	Depreciation (non-cash)	15% Percentage Depletion
Risk Profile	Moderate (Asset backed)	High (Dry hole risk)

Secret #5: The Corporate Residence Maneuver (The Augusta Rule)

Hidden in Section 280A(g) of the tax code is a provision originally designed to protect residents of Augusta, Georgia, who rented their homes during the Masters golf tournament. Today, it is a potent strategy for shifting income from a taxable business entity to a tax-free personal account.

The Strategy

The “Augusta Rule” allows a homeowner to rent their personal residence for up to 14 days per year without having to report the rental income on their individual tax return.

• The Move: A business owner rents their own home to their own business for legitimate business meetings, board retreats, or video production shoots.
• The Result: The business deducts the rental payment as a valid expense (lowering business taxes), and the individual receives the income tax-free.

The “Sole Prop” Trap

This strategy is dangerous for Sole Proprietorships and Single-Member LLCs (disregarded entities). Because the individual and the business are not legally distinct, the IRS often views this transaction as “paying yourself,” disallowing the deduction.

• The Fix: This strategy should be utilized primarily by S-Corporations, C-Corporations, or Partnerships. The legal separation between the entity and the individual is critical to substantiating the rental transaction.

Implementation Checklist

To survive an audit, the “paper trail” must be impeccable:

1. Price: The rental rate must be at Fair Market Value. You cannot charge $10,000/day for a living room. You must obtain quotes from comparable local venues (hotels, conference centers) to justify the rate.
2. Documentation: Corporate minutes must be generated detailing the meeting’s agenda and attendees.
3. Invoicing: The homeowner must invoice the corporation.
4. Payment: The corporation must pay via check or transfer, distinct from a shareholder distribution.
5. Limit: Strictly 14 days or fewer. If you rent for 15 days, all income becomes taxable.

Secret #6: The Family Payroll & “Trump Account” Matrix

The OBBBA has solidified the standard deduction (indexed for inflation), making “Family Income Splitting” more effective than ever. For 2025, the standard deduction for a single filer is $15,750. This essentially creates a “0% Tax Bracket” for every child in the family.

The Mechanism

A business owner in the 37% tax bracket pays nearly $6,000 in federal taxes on $15,750 of profit. By hiring their child to perform legitimate work (filing, cleaning, social media, modeling) and paying them $15,750:

1. The Business: Deducts the $15,750 as wages (saving the owner $5,800+ in taxes).
2. The Child: Pays $0 federal income tax, as their income is fully offset by the standard deduction.

The “Sole Prop” Advantage (FICA Exemption)

Interestingly, Sole Proprietorships have an advantage over S-Corps here.

• Sole Prop/Partnership (Parent-Owned): Wages paid to children under 18 are exempt from Social Security (6.2%) and Medicare (1.45%) taxes. Wages to children under 21 are exempt from Federal Unemployment (FUTA) tax.
• S-Corp/C-Corp: Wages paid to children are subject to FICA/FUTA taxes regardless of age.
• The Workaround: S-Corp owners can form a separate “Family Management Company” (Sole Prop) that charges management fees to the S-Corp, paying the children from the Sole Prop to capture the FICA exemption. This requires strict adherence to economic substance doctrines.

The “Trump Account” Integration

The OBBBA created Trump Accounts for children born between Jan 1, 2025, and Dec 31, 2028.

• Seed: The government contributes $1,000.
• Contribution Limit: Parents can contribute $5,000/year (non-deductible).
• Investment: Restricted to low-fee index funds (S&P 500).
• The Play: While Trump Accounts are less flexible than Roth IRAs (withdrawals are blocked until age 18), they do not require earned income. This allows parents to fund tax-advantaged accounts for newborns before they are old enough to be legitimately hired by the business, bridging the gap until the “Family Payroll” strategy can be activated.

Secret #7: The Mega-Backdoor Retirement Vault

For high-income earners, the standard 401(k) limit ($23,500 in 2025) is insufficient. The “Mega-Backdoor Roth” strategy exploits the gap between the employee deferral limit and the total “Section 415(c)” limit to sock away massive amounts of tax-free cash.

The Math of the “Gap”

In 2025, the total limit for contributions to a defined contribution plan is $70,000 (or $77,500 for those 50+).

1. Employee Deferral: $23,500 (Pre-tax/Roth).
2. Employer Match: Assume $10,000.
3. Total So Far: $33,500.
4. The Gap: $70,000 – $33,500 = $36,500.

The Strategy

The employee contributes this remaining $36,500 as “After-Tax” (Non-Roth) contributions. Crucially, the plan must allow for In-Service Distributions or In-Plan Conversions.

• The Move: Immediately upon contribution, the employee converts this $36,500 after-tax balance into a Roth IRA or Roth 401(k).
• The Result: Since the contribution was after-tax, there is no tax on the conversion (assuming no gains have accrued). The investor has effectively bypassed the $23,500 limit to put a total of $60,000+ into retirement accounts, with the majority growing tax-free.

Solo 401(k) for Business Owners

Self-employed individuals can execute this with even greater efficiency using a Solo 401(k). Because the individual acts as both “employee” and “employer,” they can manipulate the profit-sharing contribution (Employer side) and the After-Tax contribution to hit the $70,000 limit precisely.

• Defined Benefit Adder: For the ultra-wealthy, a Cash Balance Defined Benefit plan can be layered on top of the Solo 401(k), allowing for additional deductible contributions often exceeding $200,000+ annually, depending on age.

Secret #8: The Insurance Wrapper (Private Placement Life Insurance – PPLI)

When net worth exceeds $20 million, traditional tax-deferred accounts (IRAs/401ks) become too small to move the needle. Private Placement Life Insurance (PPLI) is the institutional solution for tax-efficiently managing large pools of capital.

The Problem: Tax Drag on Hedge Funds

High-yield alternative investments (hedge funds, private credit) are notoriously tax-inefficient, generating short-term capital gains and ordinary income taxed at the highest marginal rates (37% + 3.8% NIIT + State Tax). A fund returning 12% might only net 6-7% after taxes.

The Solution: The PPLI Wrapper

PPLI is a stripped-down variable universal life insurance policy designed for investors, not insurance protection.

• Mechanism: The investor dumps cash into the policy. The cash value is invested into hedge funds or credit funds that are usually tax-inefficient.
• The Benefit: Assets inside the policy grow tax-free. No 1099s are issued. No capital gains are realized.
• Access: The investor can access the capital via policy loans, which are tax-free.
• The Cost: Because these policies are “private placement” (no commissions to agents), the fees are extremely low compared to retail insurance. The “drag” (cost of insurance + admin) is typically ~1% or less, which is far superior to the ~40-50% tax drag of a taxable account.

Constraint: PPLI is strictly for “Accredited Investors” and “Qualified Purchasers,” typically requiring $2 million+ in premiums to be viable. The investor also cannot “direct” the investments day-to-day (the “Investor Control Doctrine”)—the manager must have discretion.

Secret #9: The Estate Freeze (Rolling GRATs)

With the estate tax exemption slated to be $15 million in 2026 (indexed), many affluent families feel safe. But for the ultra-wealthy, asset appreciation poses a massive future tax liability (40% estate tax). Grantor Retained Annuity Trusts (GRATs) are the primary tool to freeze the estate’s value.

The “Zeroed-Out” GRAT

The grantor places assets (e.g., pre-IPO stock) into a trust for a short term (e.g., 2 years). The trust pays the grantor an annuity equal to the value of the assets plus an IRS-mandated interest rate (the Section 7520 rate, approx 4.8% in late 2025).

• The Bet: If the assets appreciate more than 4.8% over the 2 years, the excess growth passes to the beneficiaries (children) tax-free and gift-tax-free.
• The Risk: If the assets perform poorly (return < 4.8%), the assets simply return to the grantor. The grantor is no worse off (other than legal fees). This is a “Heads I win, Tails I break even” strategy.

Rolling GRATs

To minimize the risk of a market downturn wiping out gains, experts use “Rolling GRATs.” This involves a series of short-term GRATs. If Year 1 is amazing and Year 2 is terrible, a 2-year GRAT might net zero. But two separate 1-year GRATs would capture the Year 1 gains permanently while only “failing” the Year 2 GRAT.

Secret #10: The Audit-Proof Fortress

Tax minimization is an aggressive sport, but defense is critical. The IRS has received significant funding for enforcement, and specific “red flags” are now triggering automated audits.

The “Dirty Dozen” to Avoid

1. Syndicated Conservation Easements: The IRS has declared war on these. Any deal promising a $4 tax deduction for every $1 invested via land easements is likely a “listed transaction” and will invite an audit, penalties (40%), and potential criminal litigation.
2. Crypto Reporting (Form 1099-DA): Starting with tax year 2025, brokers must report digital asset transactions on the new Form 1099-DA. The era of crypto invisibility is over. Failing to report crypto income that the IRS already has on a 1099-DA is an immediate audit trigger.
3. Round Numbers: Tax returns populated with expenses like “$5,000” or “$12,000” are flagged by IRS algorithms as estimates. Use precise figures ($5,023.42) derived from actual ledgers.

Avoidance vs. Evasion

The distinction is legally profound.

• Tax Avoidance: Using the Augusta Rule to rent your home to your business, supported by comparable quotes, minutes, and bank transfers.
• Tax Evasion: Creating a fake invoice for a rental that never happened, or backdating corporate minutes to justify a deduction after the year ended.

Frequently Asked Questions (FAQ)

Q: Can I use the “No Tax on Overtime” deduction if I am a salaried employee? A: Generally, no. The deduction applies to “qualified overtime compensation” required by the Fair Labor Standards Act (FLSA). Most salaried professionals are “exempt” from FLSA overtime rules. However, hourly employees or non-exempt salaried employees who receive premium pay are eligible. Business owners should consult counsel on restructuring roles where appropriate.

Q: Does the Augusta Rule work for my Airbnb property? A: No. The Augusta Rule (Section 280A(g)) applies to your personal residence. If you rent it for fewer than 15 days, the income is tax-free. If you rent it for 15+ days (as a regular Airbnb), all the income is taxable, though you can then deduct rental expenses.

Q: Can I combine the $15 million QSBS exclusion with the 100% Bonus Depreciation?

A: Yes. These are separate provisions. You can use bonus depreciation to create a massive tax loss in the year you invest in real estate, and simultaneously hold QSBS in a startup that will generate tax-free gains years later.

Q: What happens to my Trump Account if my child doesn’t go to college? A: Trump Accounts are not tied to education (unlike 529s). The funds are restricted until age 18. After age 18, the account functions like a Traditional IRA—withdrawals for any purpose are allowed but taxable (and subject to penalty if under 59½, unless exceptions apply).

Q: Is the “Car Loan Interest Deduction” only for American cars? A: The snippets indicate the deduction is for “qualified vehicles”. While some OBBBA provisions emphasize domestic production, the final statutory language dictates eligibility. Ensure the vehicle meets the specific “qualified” definition in the final IRS guidance for the 2025 tax year.

Q: How does the new $40,000 SALT cap affect my state taxes? A: The OBBBA raised the State and Local Tax (SALT) deduction cap to $40,000 for incomes under $500,000. This is a massive improvement over the previous $10,000 cap. If you live in a high-tax state (NY, CA), this allows you to deduct significantly more property and income tax, effectively lowering the cost of living in those jurisdictions for those under the income threshold.