Obbba Permanent Provisions

OBBBA — Permanent TCJA Provisions for REG and TCP Exam: CPA — Certified Public Accountant Chapter: Chapter 10 — REG Tax Procedure, Ethics, and Business Law Law: One Big Beautiful Bill Act (OBBBA), signed July 4, 2025 Testable on REG and TCP: Starting July 1, 2026 exam window Last Updated: 2026-06-26 --- ## Key Takeaways - The OBBBA made TCJA individual and estate tax provisions permanent — no 2026 sunset. - SALT cap raised: $40,000 MFJ (was $10,000 under TCJA for all filers). - Estate and gift tax exemption: $15,000,000 per person (2025), indexed to inflation. - QBI deduction (199A) is now permanent — will not expire. - Standard deduction amounts raised above original TCJA levels: $15,750 single / $31,500 MFJ. - OBBBA provisions are testable on REG and TCP starting July 1, 2026. --- ## Background: Why This Matters The Tax Cuts and Jobs Act (TCJA, 2017) reduced individual tax rates, nearly doubled the standard deduction, created the QBI deduction, and elevated estate exemptions — but set most provisions to expire (sunset) on December 31, 2025. The One Big Beautiful Bill Act (OBBBA), signed July 4, 2025, made these provisions permanent. There is no longer a 2026 sunset risk. Any CPA exam content describing these provisions as "temporary" or "expiring" is outdated. Exam Tip: REG and TCP questions that reference TCJA provisions should now be answered as if those provisions are permanent law, not temporary. Starting July 1, 2026, the exam will test OBBBA law. --- ## Individual Tax Rates — Permanently Extended The seven-bracket structure from TCJA is now permanent: | Rate | Single (2025) | MFJ (2025) | |---|---|---| | 10% | Up to $11,925 |…