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Individuals and businesses should be working closely with their financial advisers to refine tax strategies this season in light of OBBBA changes. Start with these five key areas.
By
John Bute, CPA
published
31 January 2026
in Features
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As 2026 gets underway, individuals and qualifying businesses should be reassessing several tax adjustments already in motion, and refining strategies to ensure they’re positioned as efficiently as possible for the years ahead.
Advisers know there’s rarely a “quiet” moment when it comes to tax planning, but the transition into 2026 is proving especially consequential.
With key provisions of the One Big Beautiful Bill Act (OBBBA) now effective and others phasing in, advisers should be helping clients recalibrate their tax strategies in light of a meaningfully altered landscape.
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Sign up1. Itemized deductions
One of the most impactful changes involves itemized deductions, particularly for high-net-worth and ultra-high-net-worth taxpayers.
Under the OBBBA, itemized deductions are now capped at a tax benefit of 35 cents per dollar for those in the top tax bracket, down from as much as 37 cents previously.
While the difference may seem modest, it can materially affect the after-tax value of deductions at higher income levels.
For many taxpayers, this underscores the importance of timing. Advisers should be reviewing whether clients appropriately accelerated and “bunched” deductions ahead of the change and, if not, how to best optimize deductions going forward under the new limitations.
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The author of this article is a participant in Kiplinger's Adviser Intel program, a curated network of trusted financial professionals who share expert insights on wealth building and preservation. Contributors, including fiduciary financial planners, wealth managers, CEOs and attorneys, provide actionable advice about retirement planning, estate planning, tax strategies and more. Experts are invited to contribute and do not pay to be included, so you can trust their advice is honest and valuable.
2. Charitable giving
Charitable giving has also entered a new phase. As of 2026, taxpayers can only realize a tax benefit for charitable contributions to the extent they exceed 0.05% of adjusted gross income (AGI).
While this threshold applies universally, the impact is naturally magnified for higher earners. Compounding the effect, the itemized deduction cap further reduces the ultimate tax value of charitable gifts.
These changes reinforce the continued relevance of donor-advised funds (DAFs). For clients who established DAFs before the end of 2025, the ability to front-load contributions preserved deductions under more favorable rules.
Going forward, DAFs remain a powerful planning tool, allowing investors to support charitable causes on a flexible timeline while enabling assets to grow tax-efficiently before distribution.
3. Renewable energy and solar tax credits
Another area where timing proved critical, and where advisers should confirm execution, is renewable energy and solar tax credits. Many of these incentives ended at the end of 2025 under the OBBBA.
Clients who completed qualifying energy-efficient projects before year-end may now be realizing meaningful tax savings, while those who delayed may find those opportunities closed.
Reviewing eligibility and documentation is an important step early in the 2026 tax cycle.
4. Qualified small business stock
Beyond individual taxpayers, the OBBBA introduced several notable changes for entrepreneurs and business owners, particularly around qualified small business stock (QSBS).
The enhanced $15 million exclusion is now paired with shorter holding periods, allowing for a 50% exclusion after three years, 75% after four years and full exclusion at five years.
This revised structure makes C-corporation formation more attractive for certain founders, especially in fast-growth sectors where liquidity events may occur on an accelerated timeline.
For private equity-backed businesses and early-stage companies eyeing strategic exits, QSBS planning is becoming an increasingly central part of entity-structure discussions.
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5. Opportunity zones
Opportunity zones are another area gaining renewed attention as 2026 unfolds. While existing designations sunset at the end of the year, new opportunity zones will take effect beginning January 1, 2027, and the program itself has been made permanent.
For investors anticipating significant capital gains, this creates a rolling planning opportunity.
By reinvesting eligible gains into a qualified opportunity fund (QOF) within 180 days, investors can defer taxes for up to five years.
More importantly, gains on investments held in a QOF for at least 10 years remain permanently excluded from federal capital gains taxes — an especially compelling benefit for long-term investors.
Proactive planning and open communication
Whether the focus is on adjustments already in effect or longer-term strategies that extend well beyond 2026, one theme remains constant: Proactive planning matters.
The most effective tax strategies are the product of ongoing dialogue between advisers and clients, not last-minute decisions made under pressure.
As the OBBBA reshapes key areas of the tax code, staying engaged, revisiting assumptions and implementing thoughtful mitigation strategies can make a meaningful difference.
In an environment defined by complexity and change, maintaining open lines of communication may be one of the most valuable planning tools advisers can offer.
Related Content
- What Changed on January 1: Check Out These Opportunities Created by the New Tax Law
- Are Roth Conversions for Retirees Dead in 2026 Because of the New Tax Law?
- How Will the One Big Beautiful Bill Shape Your Legacy?
- How the One Big Beautiful Bill Will Change Charitable Giving
- 2026 Marks a Seismic Shift in Tax Rules, and Investors Could Reap Millions in Rewards
This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.
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John Bute, CPASenior Managing Director of Advanced Wealth Planning, Lido AdvisorsJohn Bute, CPA, is a Senior Managing Director of Advanced Wealth Planning at Lido Advisors, bringing more than 30 years of financial services experience to helping clients navigate complex wealth, tax and investment decisions. Since joining Lido in 2019, he has focused on delivering customized wealth planning and portfolio management solutions, with particular expertise in tax minimization strategies and long-term client support. John is also a member of Lido Advisors' Investment Committee, where he contributes to the development of investment and risk management strategies for client portfolios.
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