10 post-OBBBA personal tax moves

Turn up the heat at home. Before the OBBBA, the tax law provided two types of home energy credits for qualified expenditures. Strategy: Both residential energy credits are permanently eliminated after 2025. It's now or never to get in on the ground floor.

Wrap up charitable gifts. Generally, the tax law allows donors to deduct the full amount of their charitable donations made during the year, within generous limits. *Strategy: "Bunch" your charitable donations in a year in which you expect to itemize.* Key change: For the first time, you must clear a "floor" of 0.5% of adjusted gross income (AGI) before taking any charitable deduction, beginning in 2026.

Gear up for car loans. While mortgage interest is generally deductible, personal interest paid on credit card debt and other common debts is usually nondeductible. *Strategy: Take out an auto loan when needed.* The OBBBA creates a new deduction for qualified car buyers, beginning in 2025. If certain requirements are met, you can deduct up to $10,000 of interest on a personal loan for a new vehicle.

Harvest ripe security losses. Typically, investors realize capital losses from securities sales at the end of the year to offset capital gains from earlier in the year. Strategy: Carefully review your portfolio. Then pick out the "losers" you don't mind giving up.

Keep it in the family. The OBBBA enhances several tax breaks for families with children. *Strategy: Maximize the tax benefits for your situation.* For 2025, the Child Tax Credit (CTC) is $2,200 per qualifying child.

Do the AMT shuffle. Despite favorable changes in the TCJA, some taxpayers still must pay the alternative minimum tax (AMT) instead of their regular tax liability. Strategy: Assess your current AMT exposure. When appropriate, make year-end moves to reduce your AMT liability for 2025.

Sidestep RMD penalties. If you have a qualified retirement plan account or IRA, you must receive annual required minimum distributions (RMDs) after reaching age 73. Strategy: Arrange to receive your RMDs for 2025 before year-end.

Find the tax RX. Itemizers can only deduct unreimbursed medical and dental expenses above 7.5% of their AGI. Strategy: If you have a chance at a deduction this year and expect to itemize, schedule elective procedures in December.

Nail down home improvements. Prior to the TCJA, itemizers could deduct mortgage interest paid on the first $1 million of acquisition debt. *Strategy: Use a home equity loan to substantially improve your principal residence.*

Learn the tax ropes. For 2025, educators can deduct unreimbursed classroom expenses, up to an annual maximum of $300. *Strategy: Hold off on year-end expenditures.* Under the OBBBA, you may be entitled to a bigger deduction next year.