Wealth ManagementComprehensive tax strategies for 2025

Finding advantages across your portfolio

As the 2025 tax year draws to a close, investors and business owners are facing uncertainty on a range of economic fronts, from tariffs to inflation. While macroeconomic and geopolitical factors may be outside your control, you can find advantages through thoughtful, coordinated planning across your wealth portfolio, including taxation strategies.

The greatest opportunities are likely to arise through the relationships you build over time with a dedicated team of experts. At Steel Tower, we get to know every aspect of our clients’ financial universe, from the overarching objectives to the minute interplay of each business, property, and family member.

Multidisciplinary collaboration brings meaningful results

Working in constant coordination with specialists that include our tax and accounting partners at Urish Popeck & Co., we find ways to give you insightful guidance in the realms of taxes, business execution, real estate, philanthropy, and much more—led at all times by your personal goals and long-term strategy.

For instance, a typical client’s services may involve:

• A multi-year business exit plan designed so the taxation strategy (e.g., safe harbor rules) elegantly serves the client’s larger investment goals.
• In-depth estate planning to transfer not just wealth but also financial values to heirs, and charitable giving tailored to clients’ investment, taxation, and philanthropic priorities.
• Proactive coordination of major purchases, including real estate, yachts, and aircraft, to ensure the most advantageous timing, titling, liability, and taxation structures.
• Seamless cash flow management, encompassing account coordination and decisions relating to pensions, Social Security, and required minimum distributions, as well as risk management and inflation strategies.

These activities result from hundreds of hours of collaboration across each client’s team of specialists—and are delivered with superior client communication at every stage.

“As tax strategists, our perspective is embedded into the Steel Tower financial planning process year-round. We regularly share ideas to benefit our clients and guide smooth implementation of strategies across clients’ portfolios.”

Dominick “D.J.” Stinelli, CPA, Partner at Urish Popeck & Co.

Implications of the One Big Beautiful Bill Act

No matter how the regulatory, legislative, or economic landscape evolves, the Steel Tower team finds ways to maximize your wealth today and for future generations. Let’s take a closer look at some general strategies that may benefit you, including the implications of the new One Big Beautiful Bill Act (OBBBA).

Business owners: Deduct more in 2025
Good news for business owners: The OBBBA lets you expense the full amount of domestic research and development (R&D) costs in the year you spend it, instead of amortizing it over five years. This change begins in 2025 and applies only to domestic, not foreign, expenses.

“Many clients have a misconception of R&D. They may not realize that their expenses may qualify as R&D expenses and earn the related tax credit,” says Dominick “D.J.” Stinelli, CPA and partner at Urish Popeck. “This is a valuable credit, and it’s important to work with a professional so you can consider how it impacts your financial portfolio over the long term.”

To spur spending, the law now allows businesses to take 100% bonus depreciation for assets placed in service after January 19, 2025. That means you can deduct the full cost of any qualifying assets, such as construction equipment, in the 2025 tax year instead of having to depreciate it over several years.

Individuals and families: Keep more of your wealth
Clients will have opportunities to keep more of what they earn if they adjust their strategies based on the latest changes in personal income tax rates, estate taxes, and charitable giving deductions.

“We’re always looking for ways to maximize your wealth now and for future generations utilizing tax strategies and proactive estate planning.”

Bradford Hess, CFP, Financial Advisor at Steel Tower Investments

Lower personal income tax rates: Consider your RMDs
This legislation also continues—at least until new legislation is passed—the lower personal income tax rates set by the Tax Cuts and Jobs Act of 2017. Not only does this mean lower taxes for high earners, but it also opens a planning opportunity for investors who are retired but not yet taking required minimum distributions (RMDs).

Withdrawing funds at the current tax rate allows clients to minimize taxes and reduce future required minimum distributions that may push them into a higher tax bracket. Having a strategic plan to manage RMDs can meaningfully affect your wealth, so make sure to work with your advisor to gain the maximum benefit.

Estate tax exemption: Increased for now
The biggest change in the OBBBA may be the estate tax exemption. Starting January 1, 2026, this exemption will jump to $15 million from the current $13.6 million instead of reverting to $6.6 million as scheduled. However, since this exemption may evolve once again if control of Congress changes, high-net-worth families should work closely with their advisory team to structure an estate plan that can withstand the winds of change.

Charitable giving: Consider front-loading and bunching
Starting in 2026, taxpayers in the 37% federal income tax bracket will see the value of their charitable deduction benefits capped at 35%. As a result, clients in the 37% tax bracket may need to adjust their giving plans: By front-loading any planned charitable gifts in 2025 instead of spreading them across several years, clients may lock in the full 37% deduction before the rules surrounding itemized charitable deductions change in 2026.

Starting in 2026, deductions for itemized gifts only will apply for taxpayers giving more than 0.5% of their adjusted gross income (AGI). In this case, it may make sense for clients to combine gifts they might have spread across several years into a single tax year to help the total gift amount reach the 0.5% threshold.

Thriving in any season
The environment may change, and so may your financial needs. The best way to position your wealth for any circumstances is to work with a team of experts dedicated to your success. To learn more about our multidisciplinary approach, reach out to the team of wealth management advisors at Steel Tower Investments or CPAs at Urish Popeck today.

DISCLOSURES

The information included in this document is for general, informational purposes only. It does not contain any investment advice and does not address any individual facts and circumstances. As such, it cannot be relied on as providing any investment advice. If you would like investment advice regarding your specific facts and circumstances, please contact a qualified financial advisor.

Any investment involves some degree of risk, and different types of investments involve varying degrees of risk, including loss of principal.  It should not be assumed that future performance of any specific investment, strategy or allocation (including those recommended by Steel Tower Investments) will be profitable or equal the corresponding indicated or intended results or performance level(s).   Past performance of any security, indices, strategy or allocation may not be indicative of future results. 

The historical and current information as to rules, laws, guidelines or benefits contained in this document is a summary of information obtained from or prepared by other sources.  It has not been independently verified, but was obtained from sources believed to be reliable.  Steel Tower Investments does not guarantee the accuracy of this information and does not assume liability for any errors in information obtained from or prepared by these other sources. 

Steel Tower Investments is not a legal or accounting firm, and does not render legal, accounting or tax advice.  You should contact an attorney or CPA if you wish to receive legal, accounting or tax advice. 

Investment advisory services are offered through UP Strategic Wealth Investment Advisors, LLC, doing business as Steel Tower Investments. NOT FDIC INSURED – NOT BANK GUARANTEED – MAY LOSE VALUE, INCLUDING LOSS OF PRINCIPAL – NOT INSURED