We recently hosted a timely virtual fireside chat examining the 2025 tax law changes signed into effect on July 4, 2025. The discussion was moderated by Terence Condren, JD, CFP®, Managing Director and Senior Wealth Strategist, and it featured panelist Jennifer Kowal, Managing Director and Senior Income Tax Strategist, and Mike McIntosh, CFA, Chief Market Strategist, all members of the IEQ Capital team. Together, they explored the most significant provisions for ultra-high-net-worth (UHNW) individuals, business owners, and philanthropic families, as well as the potential market impact in the years ahead.1
Key 2025 Tax Changes for UHNW Investors
Kowal opened with an overview of updates that will directly influence UHNW tax planning. Expanded Qualified Small Business Stock (QSBS) provisions now allow higher thresholds and partial exclusions after shorter holding periods, potentially creating new opportunities for founders and early investors in eligible C-Corporations.2
She also highlighted the introduction of a 0.5 percent adjusted gross income floor on charitable deductions, which can effectively reduce the allowable annual deduction. Families can preserve more of their charitable impact by strategically bunching donations into select years, often through donor-advised funds, which may help them retain flexibility while maximizing deductions.2
Looking ahead, estate and gift planning is expected to undergo a significant shift in 2026, when the federal exemption rises to $15 million per individual and $30 million per couple, indexed for inflation.2 Kowal emphasized that this increase offers a valuable window for high-impact wealth transfers, which should be reviewed periodically as exemption amounts adjust.
For business owners, the permanent reinstatement of 100 percent bonus depreciation and full expensing for research and development expenses provides long-term incentives for capital investment.2 These provisions apply to a broad range of qualifying assets, and cost segregation studies can further accelerate depreciation for certain real estate holdings. Beginning in 2027, renewed Qualified Opportunity Zone incentives will offer rolling five-year gain deferrals with partial basis step-ups, while current deferrals remain available through the end of 2026. 2,3
Market Outlook and Strategic Considerations
McIntosh noted that roughly 80 percent of the law’s tax cuts extend existing provisions, while the remaining 20 percent introduce new stimulus measures concentrated over the next two to three years.4 This combination is expected to support near-term economic activity, particularly in sectors positioned to leverage accelerated depreciation and expanded research incentives.
He cautioned that potential headwinds such as tariff adjustments, persistent inflation, and sustained higher interest rates could temper these benefits.4 Elevated rates may slow housing activity, increase corporate borrowing costs, and place pressure on consumer demand. Inflation is likely to remain above the Federal Reserve’s two percent target in the near term, driven by wage growth, service-sector pricing, and energy market volatility.
Industries with significant capital expenditure needs, including advanced manufacturing, infrastructure, and technology hardware, may see the greatest upside from the bill’s incentives.4 In contrast, interest rate-sensitive sectors such as commercial real estate and certain consumer discretionary categories could face ongoing challenges until monetary policy begins to ease. McIntosh emphasized maintaining diversification while selectively positioning portfolios to capture opportunities in high-growth areas.
Aligning Tax and Investment Strategy
The discussion underscored the importance of integrating tax strategies with investment planning to maximize the benefits of the 2025 tax changes. For UHNW families and business owners, the coming years may offer both strategic opportunities and evolving market conditions. IEQ Capital remains committed to delivering the guidance necessary to navigate these shifts with precision, ensuring that client strategies remain tax-efficient, market-responsive, and aligned with long-term objectives.
1. U.S. Congress, Tax Relief and Economic Growth Act of 2025, Public Law No. 118-45.
2. Internal Revenue Service, “Qualified Small Business Stock, Charitable Contribution Deductions, Estate and Gift Tax Exemption, Bonus Depreciation and Expensing, and Opportunity Zones,” IRS.gov, updated August 2025.
3. U.S. Department of the Treasury, “Qualified Opportunity Zones Incentives,” Treasury.gov, 2025 guidance.
4. Congressional Budget Office, Federal Reserve Board, U.S. Bureau of Labor Statistics, and U.S. Department of Commerce, “Macroeconomic and Market Outlook Reports,” August 2025.
This material is provided for informational purposes only and should not be construed as investment, tax, or legal advice. The views expressed reflect the opinions of the speakers as of the date noted and are subject to change without notice. IEQ Capital makes no representations or warranties as to the accuracy or completeness of the information provided and disclaims any liability for losses that may result from reliance on this material. Any forward-looking statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Past performance is not indicative of future results. Clients should consult their own tax, legal, and investment advisors before making any decisions.