What the “One Big Beautiful Bill Act” Means for You: Tax, Estate, Health Care & More
August 2025 | By Jonathan S. Ro, Esq., Ro Law Firm | jonathan@jsr-law.com
On July 4, 2025, President Trump signed the One Big Beautiful Bill Act (OBBBA) into law—a sweeping federal measure that will have a profound impact on Americans across many areas of life, from how we’re taxed to how healthcare and public benefits are accessed. At our firm, with offices in Las Vegas and Los Angeles, we’re already fielding questions from individuals, families, and businesses who want to know how this bill affects their planning.
Below is a summary of the key provisions of the OBBBA and what you should be thinking about right now—whether you're preparing an estate plan, managing a small business, or navigating public benefits.
I. Major Tax Changes: What Stays, What’s New
One of the headline features of the OBBBA is the permanent extension of the 2017 Tax Cuts and Jobs Act (TCJA) for individuals. That means lower income tax brackets (ranging from 10% to 37%) are here to stay. But the bill goes further:
Tips and overtime pay are federally tax-exempt through 2028.
Auto loan interest is deductible (up to $10,000).
The standard deduction is increased by $1,000 (single) and $2,000 (married couples).
The child tax credit is boosted to $2,500 through 2028.
The SALT deduction cap (for state and local taxes) is raised to $40,000, benefitting many Californians and Nevadans who itemize.
These changes mean meaningful relief for working individuals and middle-income families—particularly in states like California with higher income taxes.
II. Estate, Gift, and GST Tax Exemption: 2025 vs. 2026
As of 2025:
Lifetime exemption:
$13.99 million per individual
$27.98 million for married couples
Annual gift tax exclusion:
$19,000 per recipient
These amounts were set to sunset at the end of 2025, reverting to pre-2018 levels (roughly half).
Starting January 1, 2026 – Under the OBBBA:
New lifetime exemption:
$15 million per individual
$30 million per couple
Inflation adjustments begin annually from 2027
Tax rate remains at 40%
Key provisions preserved:
Spousal portability
GST tax parity
III. Health Care and Public Benefits: Major Cuts and New Requirements
The bill imposes sweeping Medicaid reforms, which may cause millions to lose coverage:
Work requirements (80 hours/month) now apply to able-bodied adults ages 19–64.
Eligibility checks will be more frequent.
Retroactive coverage is limited, and states are barred from using certain higher reimbursement models.
SNAP benefits (food assistance) face deep funding cuts.
Although a $50 billion Rural Hospital Fund was added to offset these reductions, experts agree it is unlikely to fully address the needs of underserved populations—particularly in rural Nevada and Central California.
If you or a loved one rely on Medicaid or SNAP benefits, these changes could significantly impact your access to care and basic assistance.
IV. Clean Energy and Business Incentives
The OBBBA dismantles much of the clean energy tax infrastructure created under the Inflation Reduction Act. This includes:
Elimination of solar and wind tax credits
New excise taxes on renewable energy projects
Rollback of incentives for green infrastructure
At the same time, the bill reinstates 100% bonus depreciation for businesses, expands deductions for pass-through entities, and doubles the estate tax exemption. Business owners and investors—especially in the real estate and construction industries—may benefit from re-evaluating entity structures and tax positions under these new rules.
V. Immigration and Access to Benefits
The bill earmarks $150 billion in new funding for ICE and border security and imposes stricter access to benefits for lawful immigrants:
Green card holders face a 5-year waiting period before accessing Medicaid.
Tighter eligibility rules may reduce access to housing and food aid.
Undocumented individuals face increased risk of enforcement.
We encourage green card holders, mixed-status families, and undocumented individuals to consult with our immigration and public benefits team. Legal status reviews and benefit eligibility planning may be more important than ever.
Who Should Take Action?
This law affects nearly every household, but the following groups should consult with counsel right away:
High-net-worth families interested in estate or gift planning
Older adults (65+), who may qualify for a new $6,000 tax deduction
Hourly and tipped workers who want to maximize their tax savings
Green card holders and undocumented individuals affected by new eligibility rules
Small business owners and landlords navigating new deductions and depreciation rules
Families dependent on Medicaid or SNAP, particularly with members under age 65
How We Can Help
At our firm, we take pride in guiding clients through complex legal and policy changes. We serve individuals, families, and businesses throughout Nevada and California, with bilingual Korean-speaking attorneys available.
Our core services include:
Estate and Tax Planning
Health Care and Medicaid Strategy
Immigration and Public Benefits Representation
Business Formation and Tax Counsel
Now is the time to review your estate plan, restructure your business, or update your immigration status. The changes under the OBBBA are far-reaching—and some provisions are already in effect.
Schedule a Consultation Today
Our attorneys in Las Vegas and Los Angeles are ready to help you understand how the OBBBA affects your future. Contact us for a personalized review at (725)222-0236.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. No attorney-client relationship is formed by reading this article or contacting the firm without a signed engagement agreement.