There are two ways the the One Big Beautiful Bill Act (OBBBA) can affect your equity compensation.

Did you buy a new vehicle in 2025? You may qualify for the new tax deduction for qualified vehicle loan interest.

Under the OBBBA, taxpayers can deduct up to $10,000 in auto loan interest for tax years 2025 through 2028. Here’s how to qualify:

Does your job offer you stock compensation?

Restricted stock units (RSUs) are one of the most common types of equity compensation we see as tax professionals.

RSUs are thought of as a “full value” grant—you receive complete ownership and full value once the vesting period is completed. You don’t have to pay anything like you would with stock options.

So where do the taxes come in? The market value of the RSUs on the vesting date is the amount of taxable compensation to you. The total taxable amount is the market value (stock price) multiplied by the number of shares vested.

Are you a small business owner wondering how the new tax law will affect your taxes?

The One Big Beautiful Bill Act makes changes to some of the rules for small business owners.

Think you’ll be able to itemize your deductions on your 2025 return?

The One Big Beautiful Bill Act (H.R. 1, signed into law on 07/04/2025) makes changes to the deductions for tax year 2025 in several ways.

The One Big Beautiful Bill Act was signed into law on Friday, July 4, 2025. The law brings with it new tax provisions and extends and makes permanent many of the expiring provisions from the Tax Cuts and Jobs Act of 2017 (TCJA).

Tax professionals are still studying and digesting this new act, here I’ll highlight some of the key provisions affecting our individuals clients this year.

Incentive stock options (ISOs) can qualify for special tax benefits under the tax code (if certain requirements are met):

- The employer can structure compensation to an employee that is not subject to Social Security or Medicare taxes
- The employee gets favorable long-term capital gains tax rates when they sell their exercised ISO stock

In order to receive those full benefits, an employee would need to hold the acquired stock for at least two years from when the stock options were granted, and one year from date the stock options were exercised.