Personal planning moves under One Big Beautiful Bill
By Paulina Matel & Brad Stanek
This article first appeared in the September issue of Powersports Business.
When the recently passed One Big Beautiful Bill made headlines, much of the industry conversation centered on its implications for dealership entities. Those are important discussions, but they leave a critical piece of the puzzle underexplored: the personal financial planning moves every dealership owner should be considering. In this article, we will shift the focus from the showroom floor to your own personal net worth statement — highlighting practical strategies that can help you protect your wealth and align your personal and family goals with this new legislative landscape.
Family considerations
529 Expanded provision: Qualified distributions now cover a broader range of expenses. The bill expanded qualified distributions for K-12 expenses to include curriculum materials, tutoring, standardized testing fees, and some homeschooling expenses. In addition, 529 accounts can now be used for post-secondary licenses and credentials, as well as educational therapies for students with disabilities.
The bill makes permanent the ability to roll over unused 529 funds into an Achieving a Better Life Experience (ABLE) account for the same beneficiary (or a family member). For those unfamiliar with an ABLE account, it is a tax-advantaged savings account designated for individuals with disabilities, allowing them (and their families) to save for disability-related expenses without jeopardizing eligibility for federal benefits like Supplemental Security Income or Medicaid.
Trump accounts (starting Jan. 1, 2026): For babies born between 2025-2028, these accounts will be available for beneficiaries under the age of 18. The U.S. government will make an initial $1,000 deposit, and families will be able to contribute up to $5,000/year (indexed for inflation), allowing the funds to grow tax-deferred until withdrawals take place. Qualified withdrawals, which include education expenses, first-time home purchase, and even small business start-up, will be taxed at capital gain rates.
Retirement, succession and estate
Additional deduction: Individuals ages 65 and older, regardless of whether or not they are receiving Social Security benefits, will receive an additional senior deduction of $6,000 per individual for tax years 2025-2028. The senior deduction begins to phase out when taxpayers’ modified adjusted gross income exceeds $75,000 ($150,000 in the case of a joint return).
Estate and gift taxes: The Lifetime Estate and Gift Tax Exemption amounts have been made permanent, providing additional clarity for estate and gift planning. Starting in 2026, the Gift and Estate Tax exemption increases to $15 million for individuals and $30 million for those married and filing jointly, indexed to inflation, going forward. In addition, the generation-skipping tax exemption matches the new estate exemption to $15 million per person.
Additional consideration
State and local tax (SALT) deductions: OBBBA raises the cap on deductibility from $10,000 to $40,000, with a phaseout starting at $500,000 in income for joint filers, and it phases out completely above $600,000. SALT reform mainly impacts residents of high-tax states, such as California, New York, and New Jersey.
The SALT cap increases the percentage of households that take the standard deduction versus itemizing their deductions, so charitable giving strategies such as a Qualified Charitable Distribution should be revisited with your tax advisor.
As these changes unfold, powersports dealers are encouraged to engage in comprehensive financial planning discussions to leverage the opportunities presented by OBBBA fully.
The bottom line is simple — One Big Beautiful Bill brings more than tax changes for your powersports dealership — it reshapes the personal financial landscape for owners and their families. Now is the time to review your planning strategies to ensure these new provisions work in your favor. We recommend scheduling a Q3/Q4 meeting with both your tax planner and financial planner for a year-end meeting to position yourself to capture every available opportunity before year-end. Proactive planning today can translate into meaningful savings and greater flexibility tomorrow.
Brad Stanek, CFP, is an executive director with the Stanek-Haack Group at Morgan Stanley, brad.stanek@ms.com; Paulina Matel, CFP, is a vice president with the Stanek-Haack Group at Morgan Stanley, paulina.matel@ms.com.
