Accavallo & Company, LLC

Regulatory Spotlight: What OBBBA Means for Your 2027 Filing

If you’ve been hearing about the One Big Beautiful Bill Act (OBBBA) but aren’t quite sure what it means for you, you’re not alone. Signed into law in 2025, OBBBA is one of the most sweeping pieces of federal tax legislation in nearly a decade, and some of its most significant provisions are already affecting returns and will continue phasing in through 2027 and beyond.

Here’s a plain-language look at a few of the changes worth understanding as you plan for year-end and beyond.

Bonus Depreciation Is Back, Permanently
One of the biggest wins for business owners is the restoration of 100% bonus depreciation for qualified property. If you’re planning to purchase equipment, machinery, or a business vehicle, this change could make a real difference in how much of that purchase you can deduct in the year you buy it, rather than spreading it out over several years.

Higher Deduction for State and Local Taxes (SALT)
The cap on how much you can deduct for state and local taxes has increased significantly for many filers, with additional increases scheduled through 2029 before it’s set to revert. If you itemize deductions, this is worth a closer look, especially if you live in a higher-tax state like Connecticut.

Changes to Charitable Giving Deductions
OBBBA reshapes how charitable contributions are deducted. Taxpayers who don’t itemize can now claim a deduction for cash donations, a benefit that wasn’t previously available. At the same time, those who do itemize will see a new floor applied to their charitable deductions, meaning a small portion of contributions may no longer be deductible. If giving is part of your year-end financial planning, this is an important shift to understand.

A Permanent Home for the Qualified Business Income (QBI) Deduction
For business owners, the 20% QBI deduction is now permanent, with adjusted thresholds that may make it more accessible depending on your business structure and income level.

Why the Details Matter
Every one of these provisions comes with its own thresholds, phase-in schedules, and exceptions. What applies to one business or individual may look completely different for another, which is exactly why a blanket summary can only take you so far.

Our team is closely monitoring IRS and Treasury guidance as it continues to be issued, so you don’t have to track every update yourself. If you’re wondering how OBBBA might affect your specific situation, whether it’s a real estate transaction, a business decision, or your personal filing, reach out to our office. We’re happy to walk through what it means for you.

Want the full breakdown? Keep an eye out for our Fall Newsletter, coming soon, where we’ll dig deeper into OBBBA and everything else you need to know heading into year-end.

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Sherri Fisher is a Tax Manager at Accavallo & Company, LLC.  Sherri has longstanding expertise in Trust and Estate Taxation, Eldercare, and Estate planning. Sherri appreciates the relationships she has built with estate planning attorneys and advisors, to provide a team approach to assisting her clients. Sherri also has seasoned experience in business and individual taxation and is partial to assisting start-ups in developing overall accounting and operating plans.

Prior to joining Accavallo & Company, LLC, Sherri was a manager in a large firm, servicing high net worth trust clients, business, and personal clients. She was also a Partner in a large bookkeeping firm, which specialized in cloud accounting systems for regional and national companies. Sherri led a team in assisting clients to organize their accounting systems.  She is a graduate of Florida Atlantic University with a B.S. degree in Accounting.    

Sherri’s experience includes working with companies and organizations in a variety of industries including:

  • Investment Trusts

  • DAPT and Family Investment Partnerships

  • Estate and Probate Administration

  • E-Commerce

  • Manufacturing

  • Construction

  • Real Estate Investment

  • Marketing and Service-based industries

In addition to her professional accomplishments, Sherri is an Intuit Advanced Pro Advisor, Intuit Future Firm Advisory Board member, member of the Valley WIN Network, and proudly served as past Connecticut Public School liaison for the Yale Tommy Fund for Childhood Cancer. Sherri enjoys time with her family, Cleveland sports, thrifting and gardening.