OBBBA BITE-SIZE INSIGHTS:

SALT Cap Increase and Phaseout & Limitation on Itemized Deductions

In this session, we dive into two critical provisions of the One Big Beautiful Bill Act (OBBBA) that reshape tax planning for high-income clients: the expanded but phased-out SALT cap and new limitations on itemized deductions. Retirement income planners will gain a clear understanding of how these changes interact with effective marginal rates and why planning opportunities are more complex, and more valuable, than ever.

Key Takeaways:

• SALT Cap Changes: Learn how the temporary increase from $10,000 to $40,000 phases out above $500,000 AGI, creating effective marginal rates as high as 45.5%.
  
  
• Limits on Itemized Deductions: Understand how high earners in the 37% bracket lose value on deductions, capped at a 35% benefit, with broader impact over time.
  
  
• Advisor Opportunities: Discover how to identify which clients are most affected and turn these complexities into clear, value-driven planning conversations.

Covisum® provides software and education for financial professionals. Not intended for the general public. Social Security Administration and U.S. government are not affiliated with Covisum.