Name: Big Beautiful Bill Act - Analysis & Insights
Uploaded: 2025-08-28T18:49:31.219Z
Duration: 1 h 32 min 8 s
Description: Big Beautiful Bill Act - Analysis & Insights

Transcript for "Big Beautiful Bill Act - Analysis & Insights": Hello. I'm Mike DiVoglio. Welcome to our session today, the One Big Beautiful Bill Act analysis and insights. The goal of the session is to educate you on the higher impact elements of this newly passed legislation and also give you some insights, planning tips, and impact to your practice and clients. Now we're gonna do some introductions, and I'm gonna lead off here. Mike DiBoglio, CPA, Intuit tax law specialist, and business analyst, have a dual role, love to teach classes for both customers and employees, also love writing tax and product articles, both for the media and our blog site, the Tax Pro Center. I worked in public accounting many years ago, and now I continue to prepare taxes for friends and family. And I'm gonna introduce Nadia. Hi, everyone. My name is Nadia Rodriguez. I am a practicing CPA out of Dallas, Texas. Been in business for over fifteen fifteen years, and I do partner with Intuit to write articles for the Intuit tax pro center, and I do also webinars. So if we haven't met in a prior webinar, good to meet you and hope to see you again in a future webinar. I am a public speaker and the founder of Nadia CPA inner circle, which is a community of tax pros. With that, I'm gonna pass it on to Eleanor. Thank you. My name is Eleanor Steinle, and I'm an Intuit manager. I teach classes for customers and employees, and I write tax articles for the Tax Pro Center. I was a corporate tax director at a publicly traded company in the past, and I currently, in addition to working at Intuit, own and manage a multi unit tax practice. Now we're gonna hear from Pam. Hi, everyone. I am Pamela Welch. I'm a senior tax analyst programmer with Intuit, and I've been with the company for over twenty years. I'm also a practicing attorney. I focus on estate planning, probate, and taxation, and, very glad to have you all here today. With that, I'll turn it back over to Mike. Okay. So we got some housekeeping slides to go through. Hopefully, they won't be too redundant for you, but let's go through them just in case there's some newcomers. The webcast will stream audio exclusively through your computer speakers. We recommend using Chrome or Safari for the best experience. Do not use any VPN, ad blocker, or a firewall like McAfee, but instead use incognito mode in your browser. Please complete the survey before you leave as the feedback is very important and valuable, to us. A recording will be available using the same MagicLink login shortly after the session ends, and the recorded webinar, will be available but not eligible for CPE and CE, unfortunately. Ask content related and tech issue questions in the Q and A to be answered by our moderators, and find relevant documents or links in the docs tab. Okay. Next, polling. Very important. When a poll is launched, you'll see a pop up on your lower left area of the event window. Go to polls to be taken, or the tab or to the tab or click on the polls tab. And we do keep those polls open for a little bit after the question. So don't panic if you don't, if you miss it. We'll have three polling questions during the presentation. Sort of the the front end, the middle, and then something towards the end. Quick disclaimer. Session is educational in nature. As you'd imagine, the information presented is accurate and up to date. Remember to keep yourself updated on any future guidance and interpretations by the government. Super important with OB3 just because of the nature of it. It just got passed and we're awaiting a lot of guidance and tax forms to eventually get issued by the government. Carefully consider the facts and circumstances when applying tax laws in your practice. Also very important, you're all here for most of you are here for CPE and CE credit. This session is eligible for an hour and a half of CPE credit and one hour of IRS CE credit. As I said, three interactive polling questions will occur during the session. To get credit, you must answer the polling questions and attend a minimum of fifty minutes per hour. If all the requirements are met, certificates will be sent to the email you provided during the registration, and the certificates will be sent within forty eight hours via the certifier. Please check your junk or spam folders if not received within forty eight hours. To troubleshoot for CPE and CE, please contact [email protected] and provide details including the webinar title and the date that you attended. Alright. We got a strong robust agenda today. As you know, the bill is pretty large wherein we broke it up into sections. We're going to go through retroactive extenders first, going to go through the Tax and Jobs Act of 2017, the permanent extenders associated with that original legislation. Then we'll hit up terminated provisions, followed by new and revised provisions that are effective in t y twenty five, super important there, and then provisions beginning in tax year '26 and after. And then we'll share some resources at the end. In each section and where applicable, we'll cover the prior rule and then the new rule, point out any planning strategies to best help your clients. Please pay special attention to the effective dates because they do vary quite a bit. We'll cover the higher impact items, more important elements of each provisions, and, key call outs. You can use the rest of the material as a reference guide, including any hyperlinks. Alright. Got kind of a general slide here. We did notice the IRS established a landing page where they're posting some basics around the new legislation, and you can find that link in your material. We're awaiting guidance and forms, instructions for both tax year '24 and '25. Our tax products will be updated accordingly later in the fall and the winter as we get those documents from the IRS. This is cool. Tax planner changes for Lacert, ProConnect tax online, ProSeries, and the Intuit tax advisor have been made to the products, and those are available to you. We provided you with an infographic on the new legislation in the document section, and you can share that with your clients. Breaks down the important elements of the legislation in layman terms. So a neat resource to share out with your clients, especially here over the summer so they can best prepare for the upcoming tax season. And by the way, oh, you'll see o b b b and o b three, all abbreviations for the one big beautiful bill. In general, we will stick to o b three throughout this presentation. Alright. Our first polling question here, What is your biggest concern around this new legislation? Option one, the IRS will provide enough guidance and impact to the tax return in time for tax season. I'm sorry. They won't provide enough time. Option two, there are too many changes for me to keep track of. Three, the very ineffective dates are driving me crazy. And the last one, I don't have any concerns. I have this. So let's see what your answers look like, and we'll give you another, thirty seconds or so to complete that question. And as I said earlier, we will leave the poll polling open even after we move past the slide. So we're seeing some neat responses here. Give me another fifteen seconds or so. Alright. Ready to move on here. Thanks for answering that. Interesting results. Okay. Now we're gonna go to, retroactive extenders, and Pam is gonna cover that topic. Take it away, Pam. Thank you, Mike. And we do appreciate all of you joining us today. As you're probably aware, OB three made a great number of changes. We're gonna fit as much as possible in this ninety minutes that we've got with you. As Mike mentioned, this this slide deck that we're covering, it is available in the docs section. So look on the upper right. It's next to the chat and q and a tabs up there, and you might wanna save this document and reference it because we're gonna be throwing, a lot of numbers at you, a lot of dates at you. It'll be a good reference, source if you wanna download it and save it. With that, let's cover some of those provisions which were extended that have retroactive effect. So first of all, let's talk about bonus depreciation. Of course, with the tax cuts and job act, in of 2017, That introduced the 100% expensing or bonus depreciation deduction. That started phasing down, after 2022. So you saw with your 2024 returns, 60% was the bonus depreciation rate. For 2025, they had slated a 40% deduction, and and then, eventually, it would be phased down to zero, for tax year 2027. Again, those were the provisions under TCJA. OB three brought back and made permanent that 100% bonus depreciation. So significant changes to IRC one sixty eight k. This retroactively applies to property acquired after 01/19/2025. No changes were made to those types of properties, which qualify for bonus depreciation. And, you know, we generally refer to it as bonus depreciation. The code calls it special allowance for certain property, and this new legislation refers to it as 100% expensing. So you might hear those terms thrown around. They all mean the same thing. O b three does provide for an election that a taxpayer can make. Instead of expensing at a 100%, the taxpayer can elect to choose the old prior percentages instead. O b three extended the bonus depreciation also to include qualified sound recording productions. That was a slight change that was added to o b three. Okay. So what does this mean? How does this affect us? Here's some tips and insights for you. When applying that bonus depreciation, you generally must apply it to all assets within that specific asset class, that are placed in service during the year. That's no change from before, but keep that in mind. For that pivotal date, 01/19/2025, the legislation states that this 100% expensing is applicable to qualified assets, which are acquired after January 19. Taken in the context of the now revised IRC one sixty eight k, as as I read it, if a qualified asset was required prior to that January 19 date but not placed into service until after the date, from my reading, it sounds like that asset does not qualify for the whole, the full 100% expensing because the language hinges on the acquisition date. So instead, if there was anything purchased between, you know, January 1 and January 19, that would, be subject to the 40% bonus depreciation. Again, that's my interpretation of it. We'll see if we get additional guidance from the IRS as time goes on. Now this change, of course, it might provide some opportunity for businesses to be strategic in in the timing of when they purchase assets and, as well as whether to make those elections, out of bonus depreciate depreciation. For those businesses that are operating at a loss, that might, warrant considering and advising them about electing out and applying the old bonus depreciation rules to minimize the amount of deductions, that they're taking in the current year. Okay. Next up, another big change, research and experimental expenditures. So under TCJA, beginning in tax year '22, the domestic research and experimental expenditures could no longer be fully expensed. Instead, they had to be amortized over five years. And then for r and e conducted outside of The US, that amortization period was fifteen years. OB three has added an entirely new IRC section one seventy four a. This makes permanent the full deduction for domestic research and experimental expenditures beginning with tax year '25. Taxpayers have the election or have an option to make an election to capitalize the expenditures if they want to. So they continue to capitalize for a period of at least sixty months, for domestic research and experimental expenses, foreign, r and e still must be amortized over fifteen years. For those businesses that have partially amortized domestic r and e expenditures, and they still had a few more years left to take the amortization, they can accelerate the expensing of that unamortized portion and choose to deduct it all in 2025 or spread it out over 2025 and 2026. The part of this change that has a retroactive effect is that small businesses, so that is those who have gross receipts, average gross receipts of 31,000,000 or less, they can amend the prior year tax returns for '22, '23, and '24 in order to fully expense those domestic r and e expenditures for those prior years. That will, make a big difference for those affected small businesses. So some things to consider in light of these changes. You might wanna cancel your small business clients that are affected by these changes. Discuss the option to amend those prior year returns. Don't forget, the businesses that are developing software and other technologies, those would fall into this category. Now as of yet, the IRS has not released any guidance related to the mechanics of making that election. We're waiting for additional guidance, of course. Likewise, we haven't heard anything about what to do for those small businesses which currently have their 24 tax returns on extension. Now an argument could be made that if the taxpayer elects to apply that new law to their prior year returns, then they could potentially fully deduct those expenditures, on an originally filed 24 tax return. But absent instructions from the IRS on the feasibility of that approach, it it carries some risk. So the short answer is we don't know what to do with those returns that are affected that are currently on extension. We'll wait and see. That's gonna be a lot of the the answers, unfortunately, with this, sweeping legislation. So for those businesses which did incur R and E expenses between '22 and '24 and they have the unamortized remaining amounts to deduct, you might wanna run some projections. Maybe run it both ways. What happens if we take all of it in '25 versus what if we spread it out over '25 and '26? Run some projections for your clients, see what's gonna give them the best benefit overall. Now, just as the changes brought by t g or TCJA, this o b three change making the deductibility of these expenses permanent, it is treated as a change in accounting method in the method of accounting for purposes of IRC four eighty one. The logical question there then is, well, do we need to file a thirty one fifteen to report this? I've listed some prior guidance offered by the IRS there. You see a whole list of rev procs and notices with superseded provisions and, additional guidance and modifications. So this was all just in response to what do we do in 2022. You can use those references. Those are hyperlinks in the document to to go to those, publications. But, in my opinion, I I'm not convinced that the IRS knows what they wanted us to do back in '22. So I'm not sure how much information we can glean from these to determine, what the crystal ball says that we should do with 2024, 2025 going forward, or amending those prior year returns. But I wanted to provide those resources for you. And as I said, we're all waiting for additional guidance on how to report that, how to make the elections, and what needs to be included to report the change in accounting method. So, hopefully, more to come on that. So we covered the, provisions that had a retroactive effect. Let's now talk about, those TCJA provisions which were made permanent, and they were set to sunset at the 2025 but now have been made permanent. So first of all, income tax rates. The Tax Cuts and Jobs Act had temporarily modified the ordinary income tax brackets for individuals. Those were effective for 2018, for tax years 2018 through 2025. O b three now makes those rates permanent. So we are permanent with tax brackets of ten, twelve, 22, 24, 32, 35, and 37%. TCJ also expanded the income ranges for those tax brackets for both ordinary and capital gains tax rate and adjusted by, the thresholds in order to eliminate that marriage penalty. Also, TCJA had modified the rules for indexing for inflation. So each of those provisions has been made permanent, beginning in tax year '26. O b three did make a minor change in adjusting the base year that's used for, inflation indexing for the bottom two brackets, the 1012% tax brackets, and that is also a permanent provision. So with these tax brackets, these rates being made permanent, that does give us some stability in what to expect in planning for our clients going forward. Similarly, with trust and estates, the, TCJA had modified the income tax brackets and, rates. Those have been made permanent. So ten, twenty four, 35, and 37% rates now apply to trust and estates. And as I said, that is permanent starting with 26. So and the same provisions for expanding the ranges covered by each tax bracket and the changes to the rules on indexing for inflation, that also applies to trust and estates and has been made permanent. Standard deduction. So one of the significant changes of TCJA was, greatly increasing the standard deduction deduction amount. That caused a lot of taxpayers to no longer, itemize their deductions. So, you know, the IRS had even published I have here the 25, prior amounts. They had already published what the twenty twenty five standard deduction amounts would be, with o b three. They made some changes. So not only did o b three make permanent those increased standard deduction amounts, but they gave a little bump to the numbers for '25. So disregard what the IRS previously published is the 25 standard deduction amounts. They have now been replaced with these amounts posted on on this slide. So they increased just a little bit. You might wanna review your estimates for clients just to see if you might make any adjustments to these last couple quarters estimated tax payments. I'll point out that the neither the TCJA nor o b three made any changes to that additional standard deduction for taxpayers over the age of 65 in taxpayers who are blind, so no changes there. Personal exemptions. So another big provision of TCJA was eliminating the personal exemption. It was it was entirely repealed, and o b three made that repeal permanent. Now there is a new deduction. You've probably heard about the deduction for seniors that was added by o b three, and Nadia will be covering that a little bit later in this session. So she's gonna go over the details of the new personal exemption for seniors. State and local tax deduction. This was another big change, that TCJA brought, putting a $10,000 cap on state and local tax deductions. There were there was a huge impact for a lot of taxpayers there. Under the OB three, the new laws under OB three that increases the SALT cap. So what was 10,000 is now 40,000 for tax year '25, or half that amount for married filing separate. And you'll see from 2025 up to 2029, there's gonna be an increase each year of 1% of that cap amount until we get to 02/1930. In 02/1930, this provision sunsets and goes back to the TCJA cap of $10,000. You'll see there also there's the deduction phase out threshold listed. This was new for OB three. Under TCJA, there was no phase out, but, now there is going to be a phase out starting in '25. The phase out, the phase down threshold begins with modified AGI of 500,000 or half that value from married filing separate. And then that threshold also increases 1% each year through 2029, at which point in 2030, when we go back to the TCJA rules, we'll have the $10,000 cap and no phase down. So how does the phase down work? Well, it is a 30% reduction of the amount of modified AGI over that threshold. One of the provisions, though, is that the phase down cannot reduce the deduction below $10,000. That means, no one's gonna be in a worse position under o b three than they were under TCGA when it comes to the SALT deduction. Now for the period of time that the higher SALT cap applies and the phase down, applies, In particular, we're gonna see with high income taxpayers that they're probably not gonna be impacted much by that change. So some things to consider. As I said, high income taxpayers that have a lot of state and local income tax, high property taxes, high income tax in their state, they're gonna see limited benefits from this change. With the higher SALT deduction, there might be more taxpayers who now qualify for itemized deductions. So there might be some strategic guidance that you can provide your clients to consider the timing of their deductions, you know, when to make those state estimated tax payments, whether to pay the property taxes year or next year. So those strategies come back into play for a lot of people that previously kinda have them off the table. So while there has been a lot of talk about cutting off that workaround that many states implemented by allowing pass through entities to pay the tax at the entity level rather than the individual partner or shareholder level. OB three did not make any changes, did not address the PTEG workaround. For states that offer a pass through entity tax filing option, you might wanna wish weighing the benefits of making that election. I I I think it'll be interesting to see how the states respond to this change, especially in light of this expanded cap sun setting in 2030. So, we're looking forward to finding out how the states treat this and what kind of changes they might make to, kind of continue to work around the the cap. Okay. Next up, we have the child tax credit. The TCJA had increased the amount to 2,000. OB three has made the increase permanent, but also bumped it up a little. So now, the child tax credit is 2,200 per qualifying child. There was also a provision added to adjust the amount annually for inflation. So we expect in future years, it'll be incremented a bit. Under CCJA taxpayers, we're required to earn at least $2,500 in order to qualify for the child tax credit. That provision was made permanent under OB three. The income phase out for the child tax credit of modified AGI of, $400,000 of married filing joint or 200,000 for other filing statuses was also made permanent. One difference to note is that the new law well, previous law, TCJA, did require that the qualifying child have a social security number, but did not have requirements on the taxpayer having a social security number. OB three changed this so that not only does the child need to have a social security number, but the taxpayer or the spouse, if they're married filing jointly, does have to have a Social Security number. So what this means is that taxpayers can no longer qualify for the child tax credit if they only have an I-ten and not a Social Security number. So let's talk a little bit about ITINs. Many of you are probably familiar with these, but just wanted to give you this as a reference. You know, an I 10 looks an awful lot like a Social Security number. It's nine digits. It's formatted the same. But to identify, hey. Am I dealing with an I 10 or Social Security number? The key, point is, does it begin with a nine? All I tens begin with the the number nine, and then I've given you the range for the fourth and fifth digits in there. If it's in those ranges, then it is an I 10. That's how you can identify whether your taxpayer is using an ITIN. I've also provided some additional material in the resources section at the end of this, presentation. So when you download the document, you can use that. I've listed out the, all of the provisions that are affected by the new Social Security number requirements in o b three. So some things to consider, with these changes. So as the case with most things that are tied to AGI limitations or modified AGI, you might wanna employ some of the strategies to lower, AGI, such as taking advantage of, contributions to retirement accounts and HSAs. You might wanna review your clients, see which ones have ITINs rather than SSN, and advise them on the impact to the child tax credit, as far as their returns are con concerned. And as was the case before, Social Security numbers do need to be issued prior to the due date of the return in order to be eligible for the credit. So the refundable portion, the additional child tax credit, the provisions were made permanent. So the same rule that applied under TCGA now still applies going forward. And based on the information that we currently have, we're expecting that the refundable portion per qualifying child will be 1,700, which was the same amount that it was in '24. So we're expecting that to be unchanged. Again, We'll know more when the IRS issues, additional guidance. OB three also implemented the same requirement around Social Security numbers for the the refundable additional child tax credit so that at least one spouse on a married filing joint return or the taxpayer, if for any other filing status, does have a Social Security number. That is a requirement in order to qualify for the refundable additional child tax credit. Credits for other dependents. The TCJA had allowed for a temporary nonrefundable credit of $500 for dependents who don't qualify under the child tax credit. O b three made both this provision and the related income phase out threshold permanent, so, no changes after 2025 on that. Alright. Qualified business income deduction, another big change brought by TCJA, has been made permanent. So it it continues to be effective for tax years after '25. Even though it was set to sunset, it has now been made permanent. OB three did make a few changes to the qualified business income deduction. It increased the phase in threshold, beginning, in tax year '27. So we've got a few years to worry about that, but it increased the threshold from 100 to 150,000 for joint filers and then from 50,000 up to 75,000 for all other filing statuses. OB three also added a provision for a minimum QBI deduction of $400, which is indexed for inflation, for any qualified trader business in which the taxpayer materially participates. So that is the qualification for that. So as long as that active qualified trader business has aggregate business income of at least a thousand dollars, they are going to be allowed a $400 minimum QBI deduction. This provision becomes effective for tax years 2026 and forward. So some things to think about with this. While these changes to the QBI deduction are are just extended based on what TCJA had in place, There might be some planning opportunities for you to run some projections for your small business clients and strategize around whether earnings are best allocated to wages or to bonuses or included in self employment income. We're also gonna have some tie in with those PGET elections, lots of moving parts in order to maximize the benefit for your clients there. And then with this, the small very small businesses, that new $400 minimum QBI deduction, it could provide a nice benefit for them. It might even spark some some new ventures, some new, side gigs. So something to advise your clients on as well. Okay. I could, talk a lot about the estate and gift tax exemption changes. The previous, expanded kinda double exemption amount that was in place under TCJA was kind of, you know, set to reset back to the $5,000,000 basic exclusion amount than indexed for inflation. We were projecting it to be about 7,000,000. What happened under o b three is that got changed so that starting in '26, we don't have, this $5,000,000 amount index for inflation. Instead, we have a fixed amount of 15,000,000. So the new basic exclusion amounts for decedents passing in 2026 is 15,000,000 per person. And, the amount adjusted for inflation is now tied to that $15,000,000 instead of the old $10,000,000. So as it gets indexed for inflation in future years, it's gonna be based on that higher $15,000,000 amount. So what does this mean? Obviously, it it's gonna affect fewer people in general, but I do wanna point out that o b three did not make any changes to the annual gift tax exclusion amount. So, for 2025, it is still $19,000 per recipient, so no changes made to annual gifting thresholds. Also, it did not change any of the rules related to electing portability for the DSU amounts, so nothing changed there. Obviously, with the big increase to 15,000,000, this subjects even fewer individuals to the estate tax. We're gonna have fewer seven zero six filings, fewer requirements around reporting, but, there are some things to consider. So many estate plans which were put in place, even five years ago, definitely ten years ago, they were taking into account a much lower estate tax exemption amount. Now those plans might be overly complicated. They might be really burdensome from an administrative standpoint. So you might wanna advise your clients to have their attorneys review their estate plans to see if we could take some of the complexity out of those plans. And in the long run, that could save taxes because we could potentially benefit from the step up in basis when the second spouse dies. And, and, additionally, save some expenses in administering the marital trust. If you've got something with an a b trust situation or marital and family trust arrangement, a lot of the reasons for doing that have now no longer become applicable. It would be good to review those. And the and the reasons for why your clients have them set up may have changed. So, good idea to review and assess those estate plans. If you've got any ultra high net worth individuals who are participating in some gifting plan in order to maximize their lifetime gifts in service to avoiding estate tax, it's a good time to reevaluate those plans as well. They might no longer be needed. So even though the federal exemption amount is high, there are plenty of states out there that have their own inheritance tax or a state tax, and some of those are tied to the federal numbers, some are not. So review what your state rules are, review whether your state is gonna make changes based on this new law, and, remember that your clients might still be subject to state inheritance and estate taxes. Okay. AMT. TCGA had increased those AMT exemptions and the phase out thresholds, and OB three has now made those permanent. OB three did make a few changes in this area. First, the phase out rate for higher income taxpayers was increased from 25% up to 50%, meaning that the exemption phases out much more quickly under the new law. That is effective beginning in tax year '26. Also, they made a minor change to the base year that they use for, indexing for inflation. Moving expenses. TCGA had changed the deduction for moving expenses and made them only deductible for active duty military members, that were moved due to a permanent change of station order. Q or OB three does make this permanent, and, it also added members of the intelligence community who are required to relocate due to a change of assignment, lump them in with active duty military members. So they now qualify for the moving expense deduction as well. Both of those become effective in tax year '26. So itemized deductions. One of the big changes with TCJA was elimination of that 2% miscellaneous itemized deduction for individual that, has been made permanent. So there are no more 2% miscellaneous itemized deductions for individuals. No changes have been made to the 2% miscellaneous itemized deductions for estates and trust, So those continue to be deductible. O b three also made permanent some provisions around the deduct deductibility of home mortgage interest. That includes restricting that the interest must be from debt related acquisition or improvement of the home, and the reduction of the limit on the amount of acquisition debt from $1,000,000, down to $750,000. So that has been made permanent as well beginning in tax year '26. More impact to itemized deductions, in in addition to extending some of those existing TCJA provisions, there are some new provisions, which will also be in effect beginning tax year '26. One of the significant changes made made by OB three was the permanent reinstatement of the deduction for mortgage insurance premiums. So tax year 2021 was the last time we were able to deduct PMI. Now it will be back starting on '26. The mortgage insurance premiums will be treated the same as mortgage interest. This change is gonna benefit those homeowners who are itemizing and who are also making PMI payments. And typically, those who made lower down payments on the purchase of the home are the ones that are subject to PMI. So educator expenses, that $300 above the line deduction for teachers, for expenses related to classroom supplies, that is still intact. No changes to that. However, what o b three did was it added a provision saying, hey. The amount that those teachers are spending over that $300 limit, wouldn't it be nice if they could itemize those as deductions? So even though there's no, generic or catch all 2% miscellaneous itemized deduction anymore, this, the amount over $300 for the teacher expenses, the educator expenses are subject to a 2% limitation, but they can itemize those now. OB three did also add to the category, Interscholastic sports administrators and coaches to the list of those who qualify as educators who are eligible for those deductions. TCGA had suspended the overall limitation on itemized deductions. That was set to revert to the prior limitation, which was the lesser of 3% of excess AGI over the applicable amount or 80% of the amount of itemized deductions otherwise allowed. Now they've come up with a much more exciting formula under OB three. OB three completely rewrote IRC 68 and added a new overall limitation that is now tied to the 37% income tax bracket. This new over overall itemized deduction limitation is going to be two thirty sevenths. That wasn't a typo. Two thirty sevenths of the lesser of the itemized deductions or the amount of adjusted taxable income, which exceeds the dollar amount at which the 37% tax bracket begins. Because taxes weren't complicated enough, we now have a very interesting formula for the overall limitations on itemized deductions. Thankfully, most of you are using our professional tax products, so we'll take care of those calculations for you. But, just be aware that the overall itemized deduction limitation formula did change significantly. Okay. Casualty losses. O b three made permanent. Some of those, changes under previous laws. One of them being the restriction on itemizing personal casualty losses. They were, you it had to be from a federally declared disaster area. So o b three has made that restriction permanent. With a slight change, they did add state declared disasters in the list of those that are allowed to be deducted. That's beginning in tax year '26 and has been made permanent. OB three did not make any changes to the provisions of the Taxpayer Certainty and Disaster Tax Relief Act of 2020. That is the one that provided the disaster casualty losses are not subject to the 10% AGI limitation and do not require the taxpayer to itemize deductions in order to take the casualty deduction. So, no changes there. Casualty loss can still be deducted even if the taxpayer is not itemizing, and it is not subject to the 10% AGI limitation. Gambling losses. Provision including any deduction allowable and carrying on wagering transaction have is included. That was an existing provision that has been permanently extended. One change that o b three made regarding wagering losses is that, they can own they are subject to a 90%, deductibility baseline. ABLE accounts and, savers credit. So as you can review the the, chart there, there were a few things that were made permanent, TCGA provisions related to ABLE accounts. And the new provision under OB three is that the maximum saver's credit amount increased from 2,100, increased to 2,100. It was 2,000 before. That's, effective for tax years beginning '27. K. Section one seventy nine, OB three increased the $1.79 expensing limits. You'll see those on the slide summarized for you. So more than double, for 2025 what they were compared to '24. The phase down threshold also increased from 3,050,000.00 up to 4,000,000. Those provisions were made permanent starting for tax year '25. Let's cover quickly some miscellaneous provisions that were extended. The limitation on excess business loss expenses for non corporate taxpayers was made permanent. The paid family and medical leave credit has been enhanced a little bit and also made permanent. The exclusion for employer payments of student loans was also made permanent. And OB three also made permanent the TCJA provision of the Opportunity Zone program, and it made some significant changes, including allowing for new opportunity zones to be designated every ten years and allowing for a five year, a rolling five year deferral period for capital gains, also provided for enhanced benefits for rural opportunity zones. So if you have clients who participate in the QOFs, you will want to take a deeper dive on these changes made by OB three. I wanted to mention them because I know it doesn't affect a lot of people, but for those clients that it does affect, you'll wanna dig deeper. There were a lot of changes for qualified opportunity funds. Okay. Some changes to, international provisions. You can read over those. The global intangible low tax income deduction was renamed and, reduced the deduction amount slightly. The foreign derived intangible income deduction was also renamed renamed and, reduced slightly. The base erosion anti abuse tax, rate increased just a little bit and, serve excludes services income from, GILTI and FDII for US Virgin Islands based services. So some minor changes there related to international provisions. Alright. I know that was a lot, and we went through it fast, and we have even more to cover. But now it's time for a poll. So poll number two, OB three has changed the SALT, the state and local tax deduction, in which way or ways? So, check your poll tab and give your responses here. One, it increases it to 40,000. Two, it's effective for tax years 2025 through 2029. Three, it resets to 10,000 in 2030. Or four, all of the above. So I can see you guys are seeing this poll and mostly getting the answers right. I'll give you a few more seconds there to answer the poll. Okay, guys. And and the correct correct answer was all the above. All of those provisions do apply to the SALT deduction. Next, I am going to turn it back over to Mike, and he's gonna discuss some of the provisions which have been terminated. Right? Hey, Pam. I got I got that question right. Am I was I supposed to vote? No. I'm just kidding. I didn't vote. You get a gold star, Mike. Appreciate that. Alright. Let's go into, some terminated provisions here. So the, the new bill eliminates the clean vehicle credits for electrical electric vehicles purchased after 09/30/2025, just around the corner. Boo hoo. Reach out to your clients to see if they're planning on purchasing an EV and have them do so before that deadline to claim the credit. State benefits may still be available, however. Check those out. So we're gonna just quickly refresh the rules here. I won't belabor them too much, but since you're gonna be reaching out to your clients potentially, it's good to do a refresh on the rules. The amount of credit is based on two separate requirements, 3,750 credit for meeting the critical minerals requirement. Basically, a minimum percentage of the minerals contained in the battery must be sourced in The US or a country with a free trade agreement. Gonna have to look that one up. Alright. Taxpayers can also get another $3,750 credit for satisfying a battery component requirement. Minimum percentage of the value of the components of the battery manufactured or assembled in North America. Gotta look that one up too. Total potential credit is $7,500. Nothing to, overlook there. It's nice and generous. Credit is also available for new qualified fuel cell motor vehicles. Basically, vehicles propelled by power derived from one or more cells that convert chemical energy directly into electricity by combining oxygen with hydrogen fuel. And you cannot claim the credit if the prior or current modified AGI exceeds the threshold amounts 300 k married filing joint qualified surviving spouse, 225,000 head of household, 150,000 single or separate filers. Vehicles are not eligible for the credit if the price exceeds 80,000 for vans, pickup trucks, and SUVs, 55 k for other vehicles. Also, the provision was expand expanded a couple years ago. If you purchase a previously owned clean vehicle, they're allowed an income tax credit equal to the lesser of 4,000 or 30% of the vehicle's sales price. No credit allowed if the lesser of your modified AGI the year of purchase or the year before exceeds $150,000 for joint qualified surviving spouse filers, dollars 112,500 for head of household, dollars 75,000 single and separate filers. Maximum purchase price, 25,000. The model must be at least two years before the calendar year in which the taxpayer purchases the car. Original use must commence with the person other than the taxpayer. Don't try and sell it to yourself there. Okay? Qualified commercial clean vehicles credit. This one's really generous. Lesser of 15% of the basis or 30% for a vehicle not powered by any gasoline or diesel internal combustion engines or the vehicle's incremental cost. Maximum credit, dollars 7,500 for a vehicle with our gross weight rating less than 14,000 pounds, and then it goes all the way up to 40,000 for vehicles with higher weights. So, let your clients know about that one. Alright. Next up, other credits that are going away. The residential energy credits were property placed in service after 2025. No longer allowed. So it's cool that you have until the year end, but it's a bummer that it's going away. Quick refresh on the rules. Non business energy property expenditures, credit is 30% of the aggregate of qualified energy efficient efficiency improvements and residential energy property expenditures. Credit has increased for amount spent on home energy audits, dollars 150 there. Annual credit limit of 1,200 for taxpayer. Annual limits of 600, residential energy, property expenditures, windows and skylights. $250 for any exterior door, $500 total for all doors installed. $2,000 annual limit for specified heat pumps, heat pump water heaters, and biomass stoves and boilers. So you tack that 1,200 onto the 1,200, and you come up with a potential credit of $3,200. A carry forward, unfortunately, is not available. There's also another category, personal credit for residential energy efficient property. That's gonna cover the higher tech stuff like solar electric, solar hot water, fuel cell, small wind energy, geothermal heat pumps, biomass fuel property installed in homes, it's a 30% credit for qualified expenses installed. Also available for qualified battery storage technology. The qualified biomass fuel property, that category has been removed. And we do have a possible carry forward for any unused credits over to t y twenty six. That's just kind of reading between the lines. There used to be a carryover and we'll have to wait for guidance to see if they continue that one. Alright. So some planning tips and insights. You can still claim these credits for improvements made in 2025 on your 2025 tax return, but this is the last year they're available. Proactively reach out to your clients, see if they're planning on making energy efficient home improvements. If so, have them do have them do so before year end. State benefits may also be eligible. Married taxpayers with more than one home. If you both if both of you and your spouse owned and lived apart in separate main homes, the credit limit applies to each of you separately. Nice bonus there. We got some miscellaneous, sunsetters. The alternative vehicle refueling credit going away, energy efficient commercial buildings deduction, not available after 06/30/2026. Secondly, the enhanced health care premium credit slated to sunset at the 2025 as well. It's an expanded form of the credit, been available since 2021 for higher income taxpayers purchasing marketplace type plans under the ACA. Taxpayers with household incomes above 400% of the poverty line have been able to take this credit, for 2021 through 2025. There's some rules there on, how much you actually get, so you might have to check those out. Alright. So we are gonna move into, Nadia's gonna cover, new and revised provisions effective in t y twenty five. Thank you, Mike. I know those, provisions you were talking about, the energy credits, those have an expiration date coming up. We really need to pay attention to those. They're coming up pretty fast. For sure. Or if yes. Let's go ahead and start with those provisions that come with o b three that start in the year 2025. The first one, a temporary provision, starts in the year 2025 all the way up to 2028. Now no tax on tips. We've known before 2024 and prior that cash and noncash tips have always been subject to federal income tax. Now with the new provision, there is a deduction up to qual up to $25,000 for qualified tips. Now what exactly are qualified tips? We're gonna go over that. But for now, a $25,000 deduction. There are limitations on your modified adjusted gross income when that deduction starts to phase down. If your modified adjusted gross income is a $150,000 or more or $300,000 if you're married, filing joint, then we need to start reducing the $25,000 by $100 for every $1,000 over. Now for this provision, you do need to have a Social Security number, and that Social Security number must be authorized to work. So what exactly are qualified tips for the $25,000 deduction? Well, first, these kind of tips, they must have been received by individual in an occupation with customarily and has regularly received tips prior to or before December 2024. Now it has to be an amount that's paid voluntary and not subject to negotiation. So if you think about it, there's some places that do in the service industry that do offer or require a 20% gratuity for large parties. That is not a paid voluntary amount because the next bullet point you'll see, this amount must be determined by the payor. So that would not qualify as a qualified tip. Now the tips do have to be reported on a statement to the IRS. How do these statements look like? We're still not very sure. I will tell you that our industry, you and I, we do not qualify for this deduction because we are a specified service trader business in SSTB. And if we know SSTBs, it's a trader business where the principal asset of that trader business is the reputation or the skill of one or more of its employees. So, yes, our industry does not qualify for this deduction on tips. The tips, they still are subject to Social Security and Medicare tax. Now are they subject also to, state tax? That is what we're gonna wait on guidance for. The states, are they gonna how are they gonna respond? Are they gonna allow also a deduction, or will they not allow the deduction? We have to wait on state guidance. Now the deduction is available also to self employed. Think about those Uber drivers or the Lyft drivers. They also receive tips and would qualify for this deduction. Now the IRS does have ninety days, which expires October 2025 to provide us more guidance on the exact industries that will allow the qualified tip deduction. Now there has been a 2026 draft form release for the form w two where it does give us a little bit of an insight into some new codes that have been added to box 12 a and how 14 a and 14 b are now split. However, for 2025, the w two, the ten ninety nine will not be updated. And we'll go over in a news release that was sent out by the IRS confirming no changes to w two and ten ninety nines. So let's look at an example for no tax on tips. Let's say we have a married filing joint couple. They're a taxpayer and spouse. They're tip earners. The taxpayer receives $20,000 of tips, the spouse $15,000 in tips. Their modified adjusted gross income, they're under the threshold limit, so their $25,000 deduction will not be reduced. But if you add up both of those tips, the taxpayer and the spouse, it is greater than $25,000. However, they're limited to the max of $25,000 on their joint return. The no tax on overtime. This is another provision that comes with o b three. Temporary 2025 through 2028. So if we look at what the prior rule has been, what have we been used to? Overtime is fully taxable. Now with o b three, starting 2025, you can receive a deduction for qualified overtime up to 12,500. Now this deduction does reduce taxable income, but also it comes with phase out limitations on your modified adjusted gross income. And just like we saw with qualified tips, if you have a $150,000 or more or $300,000 if you're married, filing joint, then we have to start to reduce that $12,000 $12,500 of a deduction. We reduce it for by a $100 for every $1,000 that's greater than that income limitation. And just like qualified tips, the no tax on overtime provision does require a Social Security number and one that has to be off that is authorized to work in order for you to be eligible for this deduction. Now we do see that certain workers are the ones that will benefit from this. Police officers, firefighters, nurses, retail workers, and the overtime compensation. What exactly is that? It has to be compensation that is required to be paid under section seven of the Fair Labor and Standards Act. And when we think about overtime, we always think about time and a half. Well, when it comes to this type of deduction, the overtime pay is the half portion of time and a half. And most likely, we're thinking it would have been change there would have been changes to form w two and ten ninety nine, but, again, there was a news release that there will be no changes for the year 2025. But we do see that the 2026 draft version will change. It looks like right now, it is a draft version. There's a link that you can access later, but it looks like 2026. 2025, no changes. If we look at an example, let's say a taxpayer makes $20 an hour regular pay, and they have worked twenty five hours of overtime. So their rate is $30. Their modified adjusted gross income is under the threshold limits. So now we take twenty five hours that were worked overtime times $10, which is the hour differential. That is the only amount that we can take into consideration for this calculation. For this example, we have a $250 of an allowable deduction. So here's details on the news release that was sent by the IRS on 08/07/2025, confirming that there will be no changes to the 2025 form w two and the ten ninety nine. Basically, because this will delay the tax filing season, and they don't wanna prevent they want to prevent disruptions to the filing season. So, yes, we will not see any changes to the w two, but we are waiting for guidance, and they have until October more on what specific industries are allowed the tip deduction and more guidance on how the employers will report this on a statement or somewhere on the form w two that is currently out there for 2025. With o b three, another provision that does take into effect 2025, and it is temporary only up to 2028, the enhanced deduction for seniors. They are allowed a $6,000 deduction on their tax return if they are aged 65 or over. This deduction does reduce taxable income, and the seniors do not have to be receiving Social Security benefits to be entitled to this deduction. There is an income limitation, though, and the modified adjusted gross income limitation is $75,000 or $150,000 if you're married. At that point, the $6,000 starts to get reduced by 6% for every for anything past that the amount of the threshold limitations. Now I do want to reiterate that this new enhanced deduction for seniors is completely separate from what we have had in the past and which we will continue to have, which is the existing additional standard deduction that has been allowed to seniors. Now at this point, it's really important for us to start considering opportunities to either accelerate or delay income if we want to have our taxpayers use this type of deduction. If you have a client that's receiving a first time required minimum distribution, think about whether it makes sense to either take it this year or delay it for the year after. Really pay attention to those income thresholds so that your client does not get that reduction on their enhanced senior deduction. Another provision in temporary, again, starts in 2025 all the way up to 2028. And this is completely new that we we hadn't heard about, which is the no tax on car loan interest. So that's why 2024 and prior, we had not been able to have this type of deduction. Now the deduction that no car on on no tax on car loan interest is a deduction up to $10,000 per year for interest that is paid on qualified car loans. It does require that the vehicle is for personal use and that its final assembly occurred here in The United States. The loan interest has to be on a loan that has been incurred after 12/31/2024. But, again, we have a phase out. The $10,000 must be reduced by $200 for every $1,000 over these thresholds, which are $200,000 if you're married, filing joint, and everybody else, 100,000. Just looking forward to next season. We will have to start requesting the VIN from our clients because that will be required on the tax return if they will be able to take this deduction on the car loan interest. The buyers of new vehicles, start thinking about maybe, is that something that's gonna influence their buying decision this year or even next year? Consider those opportunities of, again, delaying the income to meet these thresholds on the modified adjusted gross income. Now the provisions does mention that the lender is required to report this interest that they have received to the IRS and to the taxpayer. How? We don't know yet. Still waiting on the IRS guidance until October. Now we also see with the o b three, a new provision that does come through. It introduces a brand new tax code section one sixty eight n. Now this section does bring in two new terms that it introduces, qualified production property and qualified production production activities. Now really what this is, it's manufacturing. And what we have known 2024 and prior, you have to depreciate a manufacturing facility over thirty nine years. Now with o b three, it does allow a 100% deduction. An election is required for this on qualified production property. Now the property must be primarily used for manufacturing, producing, or refining tangible personal property. So it means it just needs to be actively involved in transforming raw materials into finished goods. Now the taxpayer that does qualify for this type of deduction must be the one that's actually doing the manufacturing. So it can't be a lessor that is is sending out their building and sending it to somebody that does the manufacturing. Lessor would not be the one qualified for that. Now the deduction is only for those that are directly operating the production activity. And do keep in mind that only parts of the building that are tied to the manufacturing do count for this deduction. So office spaces, administrative areas, or other nonproduction parts of that building do not qualify for the 100% deduction. And then we have some miscellaneous provisions that also take into effect in 2025 that come with o b three. We see at the very top the adoption credit, which for the year 2025 is $17,002.80. But with o b three, five thousand dollars of that is now refundable. We haven't had that in the past. The business interest limitation, which was previously at 30% limited to 30% of adjusted taxable income. Now with o b three, it does add back depreciation and amortization. So it does increase that to allow more of a deduction. And I did mention you see on the third row here the depreciation on the real estate, which was on the previous slide. When it comes to section 12 o two stock, the exclusion of the eligible gain that's realized from this qualified small business stock for o b three, for any stock that was issued after the enactment of it of the o b three, which was 07/04/2025. Any qualified small business is now considered one with the gross assets are up to $75,000,000. So that did increase that limit. And also now we have a partial exclusion of the taxable gain. If you held that qualified small business stock up to three years. Where before, you were required to have it for five years in order to qualify for any type of exclusion from income. And now also o b three. So it adds a new category, qualified sound production, recording productions, and this is adding it to section one eighty one of the code, which we were already familiar with it having qualified film, television, and live theatrical productions. So qualified sound recording production is a sound recording that's produced and recorded in The US, and it allows a deduction up to a $150,000. Now you will notice here the dates of when the production must commence and when it needs to be over with. So it we do have a limited time on that. With that, we have polling question number three. Now it might have already popped up for you. Again, just make sure that you do answer the polling question to get credit for today's attendance. There is no submit button. Just select one of the answers, and you'll get credit for that. Now with that, I'm gonna pass it on to Eleanor. We talked about the 2025 provisions. What about the provisions that start applying in 2026 and going forward? Yes. Now we're gonna talk about provisions that are beginning in tax year 2026 and after. Effective protect first, we're gonna take a look at the American Opportunity and lifetime learning credits. Effective for tax years beginning after 12/31/2025, Social Security numbers will be required for taxpayers to claim either the American Opportunity or Lifetime Learning credits. If a taxpayer is claiming an education credit for a dependent, the dependent must also have a Social Security number. If and this is a little bit of a planning tip here. For clients who have ITINS as opposed to Social Security numbers, they could prepay their first quarter twenty twenty six tuition in '25 to maximize the credit that they can take in this last year before the Social Security requirement begins. They're also in the education area. We're gonna talk about five twenty nine plans. For tax years beginning after enactment, that's gonna be tax year 2026. Additional expenses have been added to an already long list of expenses that are attributable to enrollment or attendance at an elementary, secondary, public, private, or religious school that can be treated as qualified higher education expenses for purposes of five twenty nine account withdrawals. The expanded list of edu eligible education expenses includes tuition, curriculum, and curriculum materials and books or other instructional materials, online educational materials, tuition for tutoring or educational classes outside of the home, fees for nationally standardized tests, advanced placement exams, college admission exams, fees for dual enrollment at higher education institutions, and also educational therapies for students with disabilities that are provided by a licensed or professional. For tax years after 12/31/2025, the act also increases the annual limit for five two nine account distributions from k through 12 expenses from $10,000 to $20,000. Now we're gonna look at the enhancement of child and dependent care provisions. For tax years after 12/31/2025, the credit percentage applied to the qualified child and dependent care expenses has increased. The maximum percentage of qualified expenses is raised to 50%. That's up from 35%. And the minimum percentage has been raised to 35%, up from 20%. The percentage is based on the taxpayer's AGI. For tax years after 12/31/2025, employers who offer employer provided child care can now take 40% up to 50% for qualified small businesses of the costs. The maximum credit is now $500,000 and $600,000 for qualified small businesses. So they're giving a little extra boost to those small businesses. The provision also expands credit credit eligibility to include third party intermediary arrangements and jointly owned or operated child care facilities. This provision is effective for amounts paid or incurred after 12/31/2025. Also, for tax years beginning after 12/31/2025, the maximum annual employee exclusion for dependent care assistance has been increased from 5,000 to 7,500 and for married filing separately from 30 just thirty seven fifty from 2,500. Further information about the child independent care provisions, We talked about the the amounts being increased, but we also have a percentage that's increased. The maximum percentage of qualified expenses has been raised to 50% from 35% and the minimum percentage from 35 to 20, And that percentage is based on the AGI. Next, we're gonna talk about the premium tax credit. Under prior law, a repayment cap limited the repayment of excess premiums to an applicable dollar amount for certain taxpayers based on income limitations. The OB three eliminates the repayment cap effective for tax years beginning after 12/31/2025. All taxpayers will have to repay in full their excess premium tax credit payments in their entirety. You should certainly monitor your clients' tax year '25 returns, and if they have a premium tax credit repayment that you should advise them to adjust their credit with their marketplace by updating their income information. Actually, it's probably a good idea for all clients who have marketplace insurance to be advised that the marketplace has accurate information to calculate the credit on and to also change that information if it changes during the year. If income and deductions have increased or decreased, they should adjust the amount so they don't end up owing a lot of money back at the end of the year. Charitable contributions. For tax years after 12/31/2025, nonitemizers may claim a charitable deduction of up to a thousand dollars and 2,000 on a joint return. The nonitemizer's charitable deduction is a below the line deduction deducted from adjusted gross income and arriving at taxable income. The 60% AGI limit for cash charitable contributions is permanently extended, and a point 5% floor is created for tax years after 12/31/2025. OB three also made changes to the thresholds at which certain information reporting forms are required. For persons engaged in a trade or business who make payments requiring an information return, such as a form ten ninety nine MIC miscellaneous or ten ninety nine NEC non employee compensation, the payment threshold has increased from 600 to $2,000. Similarly, when a payee failed to provide a correct taxpayer identification number and backup withholding applies, the threshold for filing information return has increased from 600 to $2,000 These changes are effective for payments made after 12/31/2025. And then the thresholds will be indexed for inflation beginning in 2027. Third party network transactions are generally required to be reported on form ten ninety nine k. However, there is a de minimis exception, which serves as a threshold for the filing requirement. A little bit of history here. The American Rescue Plan Act of 2021 set the threshold at $600 with no transaction requirement. However, the IRS allowed for a delay in the implementation and allowed a $2,500 diminimous threshold for tax year 2025. Under OB three, the reporting threshold for form ten ninety nine k is $20,000 and 200 transactions, and that is retroactive all the way back to 02/2022. So trough accounts, that's something new. Alright? And it's a new program that starts in 2026 to encourage taxpayers to invest for their children. The accounts must be created before the beneficiary reaches age 18. The beneficiary must have a Social Security number. So beginning in 2026, children born between 2025 and 2028 who are US citizens with Social Security numbers will be automatically enrolled and receive a one time $1,000 deposit from the US Treasury. This will count against the $5,000 annual contribution limit. Citizenship and immigration status of the child's parents is irrelevant. The one time deposit must be claimed through a bank or other qualified financial institution. Parents can opt out of the account. The first date on which contributions to the Trump accounts can be made is 07/04/2026. The annual after tax contribution, which is nondeductible, the limit for 2026 is $5,000 and will be adjusted for inflation starting in 2028. Tax on earnings is deferred. Contributions could be from parents, relatives, and friends, as well as employers or nonprofit and government entities, which we're going to discuss on the next slide. Contributions are nondeductible until the beneficiary reaches age 18. Excess contributions before the beneficiary reaches age 18 are taxed at 6%. Contributions to other retirement plans are not limited before the beneficiary reaches age 18. Once withdrawn, excess contributions before age 18 are not included in the gross income of the beneficiary. However, earnings from the excess contributions will be taxed. So we're gonna talk a little bit about the employers and tax exempt where they can make contributions. Employers can establish a Trump account contribution program whereby employers can make contributions on behalf of an employee or even a dependent of an employee. Employer contributions are limited to $2,500 adjusted for inflation beginning in 2028. Employer contributions can be deducted by the employer, and they are not taxable to the employee. They do, however, count toward the $5,000 annual contribution limit. Tax exempt entities such as private foundations can make contributions that are not subject to the $5,000 contribution limit. Contributions from unrelated third parties must be provided to all children within a qualified group, such as children in a state or a specific school district. And just a little more information. Okay. Because the money in the funds must be invested in a qualified low cost mutual fund. Qualified mutual funds must follow either the S and P 500 stock market index or another index comprised of equity investments in primarily US companies. There are additional criteria for the funds. In the year the child turns 18, the Trump account essentially becomes an IRA. Standard IRA rules will then govern subsequent contributions, withdrawals, conversions, and investments. So from a planning point, parents will wanna establish a Trump account for their child because it will they will receive the thousand dollar federal contribution for the children born between 2025 and 2028, and it is also if their employer provides a contribution also. Financial advisers have been said that aside from the thousand dollar contribution and potential employer contributions, other vehicles such as five two nine plans, though, may be more beneficial to the taxpayers. And finally, we're going to take a look at some miscellaneous provisions. Alright. So effective for tax year 2026, the use of interest capitalization as a way to deduct interest expense has been disallowed. And lastly, corporate charitable contributions are only available to the extent they exceed 1% of the corporation's taxable income. And now I'm gonna hand this back to Mike to close us out. Thank you, Eleanor. Great job. Okay. Here we go. Resources. Getting ready to, finish up. Here's a recap of provisions requiring Social Security numbers, and, you can use this slide for your reference. Okay. Next up, additional resources. Please check out our education center. It's a really cool website. Provide helpful training on product information, thought leadership, and industry news. You can browse our full list of training and education materials in one convenient location. We also have our, blog, the Tax Pro Center. You can read articles on what's important, what's trending in the tax and accounting industry, and the links are in your materials. Okay. A quick sign off, and thank you so much for attending our class today. And also wanna thank Pam, Nadia, and Eleanor for their contributions. Hopefully, everyone found the presentation valuable, and we wanna wish you best wishes navigating the new tax law for you and your clients this coming tax season. Thank you.