Insights from our tax attorneys on the latest federal and Florida updates from OB-3

Staying current with tax law changes can feel overwhelming. In our recent webinar, our panel of tax attorneys, Christine L. Weingart, Andrew H. Thompson, Waheeda Ghani, and Laura K. Sundberg, explained the most important updates introduced under the Omnibus Bill 3 (OB-3), also referred to as the “Big Beautiful Bill.” They shared what these changes mean for businesses, individuals, and families.

Section 1202 gain exclusion & C-corp considerations

One of the major updates centered on Section 1202, which allows certain C-corporation stockholders to exclude significant capital gains. The exclusion cap increased from $10 million to $15 million, or 10 times the stock’s adjusted basis. 

Christine explained: “You can potentially exclude $750 million of gain if you time things properly. The key is making sure you become a C corporation before you exceed the $75 million gross asset value so you don’t miss the window of opportunity.”

This makes entity choice and timing critical, especially for companies approaching rapid growth or planning for liquidation in the next three to five years.

Trust planning & stacking strategies

Trust structures remain an effective way to maximize gain exclusions, especially with non-grantor trusts that qualify as separate taxpayers.

Andrew emphasized the importance of planning early: “Never come to me right before the transaction; this should all be done years in advance. Proper structuring of non-grantor trusts ensures the IRS won’t argue they should all be treated as one taxpayer.”

Careful structuring avoids IRS challenges while spreading exclusions among multiple trusts and family members.

Qualified Opportunity Zones

The program for Qualified Opportunity Zones (QOZs), originally set to expire in 2026, has now been made permanent. This extension encourages investment in distressed communities while offering favorable tax treatment.

Christine noted: “Now that we know there’s going to be this longer period, it’s a good opportunity to start looking again at whether this is a good investment for you. Remember, the name of the game in income tax is defer, defer, defer.”

Investors can benefit from basis step-ups, long-term deferral, and potential exclusion of appreciation.

Section 199A & business provisions

The 20 percent qualified business income deduction, originally due to sunset in 2025, has now been permanently extended. Additional business-friendly provisions include a new above-the-line deduction for tip income, permanent reinstatement of 100 percent bonus depreciation, and retroactive full deductibility of domestic R&D expenses.

Waheeda highlighted: “For businesses with heavy R&D expenses, there’s now 100% deductibility of domestic R&D expenses, retroactively. This creates an opportunity to amend previously filed returns or adjust 2025 and 2026 filings for significant savings.”

These changes provide meaningful tax relief for a variety of industries.

New savings vehicles (Trump accounts & 529 plans)

The introduction of new “Trump accounts” provides another savings option, particularly for children born between 2025 and 2028 who may receive government-seeded contributions. However, the accounts differ significantly from 529 education savings plans.

Waheeda cautioned: “Any withdrawal of income in a Trump account is treated as ordinary income, even if held long term. That makes these accounts very different from 529 plans, whose qualified withdrawals are not taxed at all.”

By contrast, 529 plan earnings remain tax-free if used for qualified education expenses, which have now been expanded under OB-3 to cover additional costs.

Estate planning changes

The estate tax credit has been set permanently at $15 million, indexed for inflation. This brings more certainty to estate planning, while portability of credits between spouses ensures better long-term planning opportunities. 

Laura reminded participants: “Everyone should be reviewing their estate plan regularly, especially if it was set up before 2010. Old strategies like credit shelter trusts may no longer be the best fit now that portability of the estate tax credit is permanent.”

In addition, non-grantor trusts now qualify for state and local tax (SALT) deductions, opening new planning options for high-net-worth families.

Florida-specific updates

The state of Florida has adopted the Uniform Series LLC Act, providing more flexible liability protection within one LLC structure. Other changes include the elimination of sales tax on commercial rent starting October 1, 2025, as well as exemptions for back-to-school supplies, disaster-preparedness items, and admission to state parks.

Waheeda pointed out: “Starting October 1, 2025, there’s going to be no sales tax on commercial rent. This is in addition to other exemptions like back-to-school supplies and hurricane preparedness items that will help both businesses and families.”

These state-level changes may reshape how businesses and individuals approach planning in Florida.

Closing thoughts

This webinar made it clear that recent tax law changes bring both new opportunities and new challenges. Whether it’s corporate structuring, estate planning, or state-level rules in Florida, our attorneys are here to help you navigate the details and plan with confidence.

If you would like to discuss how these updates might impact your business or personal financial plan, please contact our team. 

Christine L. Weingart
Andrew H. Thompson
Waheeda Ghani
Laura K. Sundberg

About ZKS LAW

With decades of experience and a client-first approach, ZKS provides comprehensive legal solutions tailored to your needs. Whether navigating complex business matters, defending workers’ compensation claims, or offering strategic counsel, our team is committed to delivering results. As a trusted legal partner in Florida and beyond, we strive to exceed expectations through integrity, expertise, and a deep commitment to our clients.

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