Core Points - The One, Big Beautiful Bill Act (OBBBA) signed by Donald Trump introduces significant changes to the tax code, particularly affecting below-the-line deductions [1][2] - The OBBBA makes permanent the tax cuts from 2017 and introduces new relief measures, especially in terms of deductions [2][3] Tax Changes - The standard deduction has increased from $15,000 to $15,750 for single filers and from $30,000 to $31,500 for married/joint filers to account for inflation [4] - The State and Local Tax (SALT) deduction limit has been raised from $10,000 to $40,000, with a 1% annual increase until 2029, reverting to $10,000 in 2030 [4] Strategic Tax Planning - Taxpayers in high-tax states are advised to accelerate payments to maximize the $40,000 SALT cap, especially if their Adjusted Gross Income (AGI) is below the phaseout threshold [5] - Seniors are encouraged to consider Roth conversions or manage retirement distributions to qualify for the full senior deduction of $6,000, with income caps of $75,000 for single filers and $150,000 for married/joint filers [5] Deductions for Vehicle Purchases - The OBBBA allows a $10,000 auto loan interest deduction for qualifying vehicles assembled in the U.S., with a phaseout for Modified Adjusted Gross Income (MAGI) above $200,000 for married/joint filers and $100,000 for single filers [6]

State and Local Tax (SALT) Deduction Overview - Prior to 2017, the state and local tax deduction was unlimited, allowing families to reduce their federal taxable income by the full amount of state and local taxes paid [1] - In 2017, Congress capped the SALT deduction at $10,000, impacting areas with high real estate values [2] - The new tax and spending bill addresses this issue with an increased deduction for state and local taxes [2] Impact and Criticism - States like Florida and Texas may also benefit from the increased SALT deduction [3] - Critics argue against federal subsidization of high state and local taxes in states like New York [3]

Tax Policy Change - The One Big Beautiful Bill ACT (OBBBA) allows some taxpayers to benefit more from the state and local tax deduction, known as SALT [1] - Experts are analyzing who will benefit and who will not from this new change related to SALT deductions [1]

House and Senate Republicans from high-tax states remain at odds over limits on the state and local tax deduction despite a meeting with Treasury Secretary Scott Bessent to try to resolve differences. Suzanne Lynch reports on Bloomberg Television. -------- More on Bloomberg Television and Markets Like this video? Subscribe and turn on notifications so you don't miss any videos from Bloomberg Markets & Finance: https://tinyurl.com/ysu5b8a9 Visit http://www.bloomberg.com for business news & analysis, up-to-th ...

Senate Republicans has set up a potential fight uh with the uh House following massive changes uh to the president's tax bill. A sticking point in the House raising the state and local tax deduction to $40,000. The Senate uh would like it to remain where it is at $10,000.Joining us now, Republican uh Congressman Nick Loa. Congressman, thanks for uh for joining us this morning. Can you you can make the case for for 40,000. Can you make the case for taking Can you make the case for taking it off completely.Ye ...