Obbba Permanent Provisions

OBBBA — Permanent Tax Provisions for CFP Exam Exam: CFP — Certified Financial Planner Chapter: Ch05 — Tax Planning Law: One Big Beautiful Bill Act (OBBBA), signed July 4, 2025 Testable: Starting March 2026 exam window Last Updated: 2026-06-26 --- ## Key Takeaways - The OBBBA made TCJA individual tax provisions permanent — no 2026 sunset. - SALT cap raised to $40,000 MFJ / $20,000 single (2025). - Estate and gift tax exemption: $15,000,000 per person (2025, indexed to inflation). - QBI deduction (Section 199A) is now permanent — significant for self-employed clients. - Standard deduction: $15,000 single / $30,000 MFJ (2025 base; OBBBA boosted amounts further). - All OBBBA provisions are testable on the CFP exam starting the March 2026 window. --- ## Background: TCJA Was Temporary — Now It's Not The Tax Cuts and Jobs Act (TCJA, 2017) lowered individual rates, expanded the standard deduction, created the 20% QBI deduction, and raised the estate exemption — but with a sunset date of December 31, 2025. The One Big Beautiful Bill Act (OBBBA), signed July 4, 2025, made all major TCJA individual provisions permanent. This eliminates the uncertainty that drove years of "pre-sunset planning." CFP Exam Tip: Prior to OBBBA, exam prep materials often discussed "pre-sunset vs. post-sunset planning." That framework is now obsolete. Any CFP question or scenario assuming TCJA expires is based on outdated law. --- ## Tax Brackets — Permanent The seven-bracket structure (10%, 12%, 22%, 24%, 32%, 35%, 37%) is now permanent. 2025 bracket thresholds (approximate): | Rate | Single | MFJ | |---|---|---| | 10% | Up to $11,925 | Up to $23,850 | | 12% | $11,926–$48,475 | $23,851–$96,950 | | 22%…