Description
Join us in San Diego as we cover the Trump Tax Updates!
TRUMP TAX & IMMIGRATION UPDATES
KEY CHANGES FOR TAX SEASON 2026
September 18, 19, 20, 2025
Manchester Grand Hyatt
San Diego, California
| Public | VIP |
| Single Ticket: $495
Double Ticket: $695 |
Single Ticket: $395
Double Ticket: $595 |
Tax Trump Updates: BUSINESS
| Provision | Present Law | Trump Proposal |
| Corporate Income Tax Rate (Sec. 11) | 21% (permanent) | Decrease rate to 20% 15% for companies that manufacture in the US |
| Qualified business income deduction (Sec. 199A, as added by the TCJA) | 20% deduction for certain qualified business income (expires after 2025) | Extend the deduction |
| Provision | Present Law | Trump Proposal |
| Qualified opportunity zone investments (encourage long-term investment in economically distressed areas) (Secs. 1400Z-1 and 1400Z-2) | Certain deferred capital gains treatment if gains from sale of other assets are reinvested in a qualified opportunity fund (QOF) within 180 days; reduction of gain if held for five or seven years (10 or additional 5%) (expires after 2025) | Extend the present-law rule |
| Like-kind exchanges
(Sec. 1031) |
The TCJA limits exchanges to real property only, excluding personal property from like-kind exchange treatment (limitation expires after 2025) | Extend the TCJA real estate limitation |
| Limitation on excess business losses for non-corporate taxpayers | Non-corporate taxpayers cannot deduct excess business losses above $578,000 (MFJ) or $289,000 (other), with excess as net operating loss carryforward | Repeal the limitation |
| Provision | Present Law | Trump Proposal |
| Bonus Depreciation | Businesses may immediately deduct a certain percentage of the cost of eligible assets in year placed in service with the amount phasing down, 80% 2023, 60% 2024, 40% 2025, 20% 2026, then zero | Reinstate and make permanent (or extend) 100% bonus depreciation |
| Green energy tax provisions
Clean vehicle credit (Sec. 30D) Clean electricity production credit (Sec. 45Y) Clean fuel production credit (Sec. 45Z) Energy investment credit (Sec. 48) These provisions were added by the Inflation Reduction Act of 2022 (IRA) |
Sec. 30D – credit for purchasing electric vehicles
Sec. 45Y – credit for electricity produced from clean sources Sec. 45Z – credit for the production of clean fuels Sec. 48 – investment tax credit for renewable energy production |
Repeal generally the energy credits and other IRA incentives |
Tax Trump Updates: INDIVIDUAL
| Provision | Present Law | Trump Proposal |
| Individual income tax rates (Sec. 1) | Individual tax rates include: 10, 12, 22, 24, 32, 35, and 37%; expire after 2025 and revert to pre-TCJA rates | Extend or make permanent these rates; replace individual income tax with increases in tariffs
Approximately $2.2 trillion is collected in federal individual income taxes; some estimates put a corresponding replacement tariff rate at nearly 58% on imported goods of nearly $4 trillion |
| Capital gains tax rates (Sec. 1(h)) | Long-term rates:
Zero for taxpayers with income up to $94,050 (MFJ), $47,025 (S), and $63,000 (HOH) 15% for taxpayers with income between $94,051 to $583,750 (MFJ), $47,026 and $518,900 (S), and $63,001 and $551,350 (HOH) 20% for taxpayers with income over $583,750 (MFJ), $518,900 (S), and $551,350 (HOH) Expire after 2025 |
Reduce the top long-term capital gains rate to 15% to encourage investment The purchase price of assets would be indexed for inflation |
| Provision | Present Law | Trump Proposal |
| Social Security benefits (Sec. 86) | Zero % taxed if combined income (adjusted gross income + nontaxable interest + half Social Security benefits) is below $32,000 (MFJ) or $25,000 (S)
Up to 50% taxed if combined income between $32,000 and $44,000 (MFJ) or $25,000 and $34,000 (S) Up to 85% taxed if combined income over $44,000 (MFJ) or $34,000 (S) |
Exempt all Social Security benefits from income tax |
| Tip income (Secs. 61 and 6053 – reporting to employer) | Tip income is taxed under Sec. 61 and reported to employers monthly under Sec. 6053 | Exempt tip income from federal tax in an effort to increase workers’ take-home pay |
| Overtime pay (Sec. 61) | Subject to income and employment taxes | Exempt overtime pay from income and employment taxes |
| Standard Deduction
(Sec. 63) |
For 2024, $29,200 (MFJ), $14,600 (S/married filing separately or “MFS”), $21,900 (HOH); if 54 or older/blind, increased by $1,550 (MFJ) or $1,950 (S/HOH); increased amounts expire after 2025 | Extend the increased amounts/make permanent |
| Provision | Present Law | Trump Proposal |
| Personal Exemptions
(Sec. 151) |
Zero for 2018 through 2025 | Extend elimination of the personal exemption amounts/make permanent |
| Alternative Minimum Tax (AMT) exemptions and phase-outs (Sec. 55) | Exemptions in 2024: $126,500 (MFJ), $60,250 (S/HOH), $63,250 (MFS); phase-out of AMT: $1,156,300 (MFJ), $578,150 (S/HOH), $578,150 (MFS); increased amounts expire after 2025 | Extend increased amounts/make permanent |
| Itemized Deductions
(Sec. 63) |
Medical/dental if exceed 7.5% adjusted gross income
Mortgage interest for home acquisition debt up to $750,000 ($375,000 MFS) Charitable contributions generally up to 60% AGI Casualty and theft only if attributable to federally declared disaster Miscellaneous itemized suspended from 2018 to 2025 |
Extend itemized deduction limitations/make permanent |
| SALT deduction (Sec. 164) (so-called “SALT cap”) | Limited to $10,000 ($5,000 MFS) of state and local income, property, and sales taxes | Eliminate the SALT cap |
| Provision | Present Law | Trump Proposal |
| Mortgage interest deduction (Sec. 163) | Homeowners may deduct interest paid on home loans on first $750,000 of debt ($375,000 MFS) (was $1 million and $500,000 for mortgages originated before Dec. 15, 2017 (TCJA)) | Extend/make permanent the TCJA limits |
| Child Tax Credit (Sec. 24) | Up to $2,000 per qualifying child under 17 at year end; up to $1,700 refundable; phased out $50 for each $1,000 of modified AGI above $400,000 (MFJ) or $200,000 (S) | VP Vance suggested increasing to $5,000 per child regardless of income level |
| Estate, Gift, and generation-skipping transfer (GST) tax (Subtitle B) | Lifetime exemption amount $13.61 million, rate 40%
Exemption amount reverts to approximately $7 million in 2026 40% rate is permanent |
Extend TCJA exemption amount increase and maintain 40% rate |
Thank you BDO for this table. This document was put together with the information found here.
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