2025 Year-End Tax Planning Update

This year has been a full one, with new tax legislation, a record-breaking government
shut-down, and an Internal Revenue Service that has dealt with significant budgetary
cuts. The One Big Beautiful Bill (OBBB) Act, which was signed into law on July 4,
2025, made many of the tax provisions from the expiring Tax Cuts and Jobs Act
(TCJA) of 2017 permanent. It also introduced some tax law changes, and planning
tools that individuals and businesses may be able to take advantage of.

This planning letter contains information and planning strategies based on federal laws,
regulations, court cases, and policies that are in effect as of the publication date. The
planning strategies and recommendations discussed generally focus on federal tax
laws, so if you live in a state that does not typically follow the federal tax rules additional
nuances may need to be considered before implementing a strategy. Our state and local
tax (SALT) experts provide some insights in this letter, and are also available to provide
additional planning strategies that may be more beneficial at the state level.

In addition, international tax issues continue to be a focus, and compliance costs
continue to rise as reporting becomes more complex and penalties increase. Individuals
and businesses that engage in foreign activities need to be more vigilant in documenting
and reporting all of their foreign activities and ensuring that all income is reported
appropriately. Our international tax experts are available to talk through potential
issues and identify planning opportunities that could help minimize foreign reporting
requirements.

We hope you find the information in this letter helpful, and we encourage you to reach out
to your HBK tax advisor to discuss these planning opportunities prior to implementing any
changes. We look forward to working with you this coming year.

Download the update.