Christmas Came Early: Retroactive OBBBA Tax Breaks You Can Use In 2025 – Thompson Von Tungeln

For Santa Clarita families, 2025 has already brought one of the biggest mid-year surprises in decades: the One Big Beautiful Bill Act (OBBBA). Signed into law on July 4, this sweeping legislation includes several tax benefits that apply retroactively to the entire 2025 tax year— meaning you can start planning now and feel the effects when you file next spring.
Here are some of the highlights:
• • Higher SALT Deduction: The long-hated $10,000 cap on state and local tax deductions has been raised to $40,000 for 2025, with income phase-outs. For California homeowners paying steep property and income taxes, this is a game-changer.
• • Deduction for Overtime and Car Loans: Workers may now deduct the “time-and-a-half” portion of overtime wages (subject to caps), and interest on certain auto loans up to $10,000. That’s direct relief for families balancing long commutes and rising living costs.
• • Bonus Depreciation and Section 179 Expensing: Small business owners and landlords can again claim 100% bonus depreciation and expanded expensing on qualifying property placed in service this year—accelerating tax savings.
• • New Family Credits: Parents of children born between 2025 and 2028 may qualify for a $1,000 “Trump Account” credit to jump-start savings for the next generation.
Don’t Forget: October 15 Deadline. Because of the wildfire disasters earlier this year, all Los Angeles County residents have until October 15, 2025 to file 2024 tax returns—without penalty. If you haven’t filed yet, don’t miss this one-time extension!
Need help? Call us at (661) 945-5868 to schedule a consultation with one of our board- certified estate planning or tax specialist attorneys or join one of our free estate planning seminars to learn how the OBBBA impacts you this year.