100% bonus depreciation, previously phasing out, was effectively made permanent and reinstated for most qualified property acquired and placed in service after January 19, 2025, by the \"One Big Beautiful Bill\" (OBBB) Act. While it was 40% for assets in 2025 acquired before that date and 20% for those placed in service in 2026, the OBBBA removed the scheduled phase-down, making 100% available indefinitely for new acquisitions.
In general, the OBBB provides a permanent 100‑percent additional first year depreciation deduction for qualified property acquired, or specified plants that are planted or grafted, after Jan. 19, 2025.
The OBBB brought back 100% bonus depreciation, starting in tax year 2025. It also made the provision a permanent part of the tax code. Qualified property acquired and placed into service after January 19, 2025, may now be eligible for 100% bonus depreciation.
Notice 2026-11 allows a taxpayer to elect under IRC Section 168(k)(5) to claim 100% bonus depreciation for specified plants that are planted, or grafted to a plant that was previously planted, after January 19, 2025, by following the provisions of Treas.
At the end of 2025, the individual tax provisions in the Tax Cuts and Jobs Act (TCJA) expire all at once. Without congressional action, most taxpayers will see a notable tax increase relative to current policy in 2026.
Expiring TCJA Provisions
The following TCJA provisions are set to expire after 2025. Near doubling of the standard deduction, repeal of personal exemptions, and lower value of several itemized deductions, including those for: State and local taxes (SALT) Mortgage interest.
The 2025 Federal Tax Debate
Much like the 2017 tax law, the new law favors the richest taxpayers. More than 70 percent of the net tax cuts will go to the richest fifth of Americans in 2026, only 10 percent will go to the middle fifth of Americans, and less than 1 percent will go to the poorest fifth.
Yes, in 2024, each parent could gift $18,000 to a child (totaling $36,000 per child for the couple) without tax implications, and for 2025, that amount increased to $19,000 per parent ($38,000 per child) because the annual gift tax exclusion is adjusted for inflation, requiring separate checks for each parent to utilize the full amount, according to TurboTax, Yahoo Finance, Guardian Life, IRS (.gov), and Mercer Advisors.
100% bonus depreciation, when placed in service between 9/28/2017 and 12/31/2022. 80%, when placed in service between 1/1/2023 and 12/31/2023. 60%, when placed in service between 1/1/2024 and 12/31/2024. 40%, when placed in service between 1/1/2025 and 12/31/2025.
Among the many provisions introduced in the One Big Beautiful Bill Act, the return of 100% bonus depreciation stands out as one of the most highly anticipated by taxpayers and tax professionals alike, and for good reason. 100% bonus depreciation is now permanently enacted as of January 20, 2025.
The main downsides of bonus depreciation include losing future deductions by taking them upfront, potentially increasing future taxable income, facing higher "recapture" taxes if the asset is sold, and dealing with complex rules or state-level nonconformity, making it less beneficial for short-term investors or those in lower tax brackets who might need deductions later. It also creates large upfront tax benefits that might not align with book income, affecting financing, and rules change frequently, requiring constant tax planning.
For 2026, the federal estate and gift tax exemption is set to increase to $15 million per individual, up from $13.99 million in 2025, thanks to the One Big Beautiful Bill Act (OBBBA) signed in 2025, making this higher amount permanent and indexed for inflation. This means a married couple could potentially shield up to $30 million from federal estate and gift taxes, with the top tax rate remaining at 40% for amounts exceeding the exemption.
On July 4, 2025, President Trump signed the 2025 tax reform into law as P.L. 119-21, Republicans' “One Big Beautiful Bill.” Among its most impactful provisions is the permanent restoration of 100% bonus depreciation, offering long-term clarity for tax planning and capital investment strategies.
The big plus is timing. Instead of recovering an asset's cost over multiple years, bonus depreciation lets you deduct a large share—now 100% for many assets—in the year the property is placed in service, accelerating deductions and typically improving after-tax cash flow.
Only vehicles with a GVWR over 6,000 lbs qualify for 100% bonus depreciation without luxury auto limits.
Yes, the Duttons lose the main Yellowstone Ranch in the series finale, selling it to the Broken Rock Reservation to avoid its development and manage inheritance taxes, though Kayce ensures his family keeps a portion (East Camp) and the tribe vows to protect the land and the Dutton burial grounds, fulfilling a prophecy. Beth and Rip move to a smaller ranch, while the land returns to Native American hands, preserving it from resorts and corporations.
At a glance:
Any gifts exceeding $19,000 in a year must be reported and contribute to your lifetime exclusion amount. You can gift up to $13.99 million over your lifetime without paying a gift tax on it (as of 2025).
Step-Up in Basis for Inherited Assets
One tax advantage of leaving assets after death is the step-up in basis. This provision allows heirs to inherit assets at their fair market value at the time of death, effectively resetting the capital gains tax to zero for any appreciation during the decedent's lifetime.
If the individual tax cuts expire, taxpayers in all income groups would face higher and more complicated taxes. Machinery and equipment expensing is a key provision that, if allowed to expire, would especially harm capital-intensive industries like manufacturing.
Some of the major tax changes effective from April 1, 2025, are revised tax slabs, rebate of up to Rs. 60,000, revised ITRU deadlines, calculation of partner's remuneration allowable as a deduction and revised TDS/TCS threshold limits.