OBBBA Tax Provision Summary Chart 2025 July 16, 2025 | Page 14

INDIVIDUAL( cont.)

CHANGE PREVIOUS LAW OBBBA CHANGE
IMPACT ON YOU / YOUR BUSINESS
Creation of Trump Accounts and Contribution Pilot Program
No such accounts existed; only traditional and Roth IRAs for retirement savings.
Establishes " Trump Accounts " for children under 18, with a $ 5,000 annual contribution limit, employer and charitable contributions allowed, and a $ 1,000 government-funded pilot for newborns( 2025-2028). Distributions generally not allowed before age 18, with special rollover and penalty rules. Employer contributions up to $ 2,500 / year are excludable from income.
Parents, employers, and charities can contribute to taxadvantaged accounts for children, encouraging early savings and investment.
Permanent Limitation on Mortgage Interest Deduction
$ 750,000 cap temporary( 2018-2025)
$ 750,000 cap made permanent; mortgage insurance premiums treated as interest
Affects property owners; limits deductibility of interest on new loans
Permanent Limitation on Casualty Loss Deduction
Limited to federally declared disasters( 2018-2025)
Limitation made permanent, expanded to state-declared disasters
More disaster losses may be deductible
Permanent Suspension of Miscellaneous Itemized Deductions
Suspended for 2018- 2025
Suspension made permanent, except educator expenses
Reduces deductibility of certain business-related expenses for individuals( ex. unreimbursed employee expenses)

OBBBA Tax Provision Summary Chart reaadvisory. com 14