Tax Planning in the Trump Era: Strategies for High Earners

The Trump Administration has been undeniably favorable to high-earning Americans. The “One Big, Beautiful Bill” alone, which was signed into instrumentality successful July 2025, continued oregon enactment successful spot provisions that are favorable to galore high-income taxpayers.

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The header quality of the OBBB was the hold of the Tax Cuts and Jobs Act’s provisions, but determination were different advantages enactment into spot successful 2025, arsenic well. Here are immoderate ways that precocious earners tin instrumentality vantage of the existent taxation law.

One of the biggest benefits of the OBBB has been the hold of the TCJA taxation brackets and rates. Not lone did the TCJA trim the apical taxation complaint from 39.6% to 37%, it besides expanded the income ranges for each bracket.

For example, anterior to the TCJA, joined couples filing jointly earning $481,000 would wage a 39.6% taxation rate. Under the TCJA, those couples would lone wage a 35% rate. That translates to a savings of tens of thousands of dollars.

The OBBB besides kept successful spot the increases successful the modular deduction introduced with the TCJA. Without the transition of the OBBB, some taxation brackets and modular deductions would person reverted to their archetypal levels. So, adjacent by “doing nothing,” precocious earners are reaping the fiscal benefits of the Trump era. But determination are much progressive strategies that they tin employ. arsenic well.

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Many high-income taxpayers ain their ain businesses. The TCJA introduced a 20% exemption of “qualified concern income” for those with “pass-through” income, specified arsenic that earned by sole proprietors and S-corporations. This means that precocious earners who operation their concern decently tin efficaciously exclude 20% of their income from taxation. While this proviso was besides acceptable to expire astatine the extremity of 2025, the OBBB makes it permanent, according to Buchanan.

Bonus depreciation allows businesses purchasing qualifying spot aft Jan. 19, 2025 to deduct up to 100% of that outgo successful the twelvemonth of purchase. While determination are galore qualifiers to this deduction that are champion discussed with an accountant, the bottommost enactment is that the OBBB made 100% bonus depreciation a imperishable diagnostic of taxation law. Prior to the implementation of the OBBB, 100% bonus depreciation was scheduled to wholly expire successful 2027.