The One Big Beautiful Bill Act: 2027 Tax Planning Priorities for You

You may have already heard about the One Big Beautiful Bill Act (OBBBA), the sweeping tax law that took effect for tax year 2026. But here is the part most people miss: several of the provisions that matter most to you don’t actually kick in until 2027. Inflation adjustments begin for the first time on some key thresholds, a brand-new Opportunity Zone program launches, and a few valuable deductions start their countdown to expiration. Let’s walk through what is changing in 2027 and, more importantly, what it means for your plan.

Your Estate and Gift Tax Exemption Is About to Move

If you and your spouse have been planning around the $15 million individual ($30 million joint) estate and gift tax exemption set for 2026, here is something worth knowing: 2027 brings the very first inflation adjustment under this law, calculated using a chained CPI-U formula. Early estimates put the new number somewhere between $15.3 million and $15.5 million per individual, but the IRS won’t confirm it until around October or November of 2026. The good news is the annual gift exclusion looks set to hold steady at $19,000 per recipient.

Our advice? Don’t rush. If you are in the middle of funding a trust or planning lifetime gifts, it usually pays to wait for the IRS’s official fall-2026 numbers before locking anything in. Once those figures are confirmed, we can sit down together and revisit your trust funding and gifting amounts with real numbers instead of projections.

Good News: Your SALT Deduction Cap Is Still Climbing

Here is a pleasant surprise: the higher SALT deduction cap isn’t staying put. It actually climbs about 1% every year through 2029, which puts the 2027 cap at an estimated $40,804 for joint filers. There is a catch, though: the income phase-out line is moving up too, to roughly $510,050 in MAGI. If your income tends to hover near that number, small timing decisions (when you take a bonus, realize a capital gain, or do a Roth conversion) can significantly change how much of that bigger deduction you actually get to keep.

If that sounds like your situation, let’s model your 2027 income against the phase-out band together before you commit to any timing decisions. And keep this on your radar: this whole higher-cap structure is temporary and disappears in 2030, dropping back to a flat $10,000.

A Brand-New Opportunity Zone Program Is Coming

This might be the biggest planning opportunity on this whole list. Starting January 1, 2027, a brand-new Qualified Opportunity Zone map takes effect; and this time it’s permanent, good for a full decade, though eligibility for designated tracts is a bit stricter than the original 2018 version. If you invest under this new map, you get a rolling five-year gain deferral starting from your own investment date, plus a 10% step-up in basis after five years (30% if you invest in one of the new Rural Opportunity Funds).

One thing to watch for: if you are still holding gain deferred from the original 2018 program, you’ll need to recognize that gain on your 2026 return, which could mean a real cash tax bill in 2027, and possibly a decision about where to reinvest. If you have a capital gain sitting on the books from 2026 or 2027, let’s talk about whether a new Opportunity Zone Fund could be a good home for it once the map is finalized.

Founders and Early Employees: QSBS Numbers Are Shifting Too

If you hold qualified small business stock, or you are a founder or early employee at a growing company, this one is for you. The expanded Section 1202 benefits: the $75 million gross-asset ceiling and $15 million per-issuer exclusion cap for stock acquired after July 4, 2025, start adjusting for inflation in 2027, the first time these numbers have moved. Timing matters here more than you might think: the exact date your company crosses that gross-asset ceiling, or the date you approach your exclusion cap, could determine whether millions of dollars of gain come to you completely tax-free. If a sale or exit is anywhere on your horizon, let’s keep an eye on these figures together as they get finalized.

A Few Valuable Deductions Are on Borrowed Time

The tip income deduction, the overtime deduction, and the $6,000 senior deduction are all set to expire after 2028, which makes 2027 the second-to-last full year you can take advantage of them. If you are 65 or older and not yet taking required minimum distributions, this is worth a closer look: the senior deduction can shelter Roth conversion income from federal tax within its limits, so 2027 and 2028 could be a great window to accelerate conversions before the deduction disappears and RMDs kick in. If that sounds like you or your spouse, let’s make a plan to use that window while it’s still open.

So, What Should You Actually Do?

Here is the big picture: a lot of numbers that felt settled for 2026 are about to move for the first time in 2027. If your plan was built around last year’s figures, it is worth a refresh once the IRS confirms the official 2027 numbers. Think of 2027 as a hinge year:  a great new opportunity opens up (Opportunity Zones 2.0) right as several valuable deductions enter their final stretch.

The honest truth is that a lot of these provisions depend on timing as much as they depend on the rules themselves. A bonus in December versus January, a Roth conversion this year versus next, these small decisions can add up to a real difference given how the phase-outs and inflation adjustments interact. That is exactly why we like to schedule a check-in around the middle of 2027, once the year’s thresholds are locked in but while there is still time to act on them.

We are watching every one of these numbers closely as the IRS finalizes them, so you don’t have to. If anything here touches your estate plan, your income timing, a potential business sale, or your Roth conversion strategy, give us a call, we would love to help you think it through.

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Insight Wealth Strategies, LLC (IWS) and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.