It was July 4th, 2025.

I happened to be down in Orlando, Florida, near one of our firm’s offices in Lake Nona. As summer nights go in Florida, it was still incredibly warm as I sat by the pool around 10:00 p.m. Fireworks were going off indiscriminately in the distance as people celebrated the 249th birthday of the United States.

I had a sparkling water in my hand—my drink of choice—and found myself reflecting on how blessed we are to live in this country, at this moment in time. A moment where, economically and geopolitically, it felt like peace was becoming the new world order. Earlier that day, President Trump had signed something that only months before seemed like a political pipe dream: the One Big Beautiful Bill, finalized and signed on Independence Day.

Now, unlike many politicians who simply regurgitate talking points—and unlike the millions who repeat those talking points without doing a single ounce of research—my job as a financial advisor and our co-chief investment officer requires something very different.

Research everything.

So instead of headlines or opinions, let’s focus on facts—because buried inside this legislation was one of the most meaningful charitable-giving opportunities we’ve seen in years.

The Largest Standard Deduction in U.S. History

One of the cornerstone provisions of the One Big Beautiful Bill was the extension and enhancement of the standard deduction. For the 2026 tax year, it became the largest standard deduction in U.S. history in nominal dollar terms.

What does that actually mean?

It means that every American—regardless of income—gets a portion of their income tax-free.

Does this benefit someone making a million dollars a year? Sure. Roughly 3% of their income might be tax-free.

But for a family earning $100,000 per year? Nearly 30% of their income is effectively tax-free.

So who actually benefited more?

The answer becomes obvious when you look beyond the rhetoric and into the math.

The SALT Deduction Makes a Comeback (Temporarily)

To help secure enough votes—particularly from high-tax states—the bill also temporarily expanded the SALT (State and Local Tax) deduction.

Previously capped at $10,000, the SALT deduction was temporarily increased to $40,000, subject to income limits.

Key details matter here:

• Duration: 2025 through 2029 (five tax years)

• Cap Amount:

  • $40,000 in 2025

  • Adjusted upward by 1% annually

  • $40,400 for the 2026 tax year

• Married Filing Separately: Half the limit

• Reversion: Scheduled to return to $10,000 for all taxpayers in 2030

  
  

This provision played a critical role in getting the legislation across the finish line—but it also created meaningful spillover effects for charitable giving.

To understand why, we first need to understand why anyone itemizes deductions at all.

Standard Deduction vs. Itemizing

For the 2026 tax year, standard deductions are as follows:

• Married Filing Jointly: $32,200

• Single or Married Filing Separately: $16,100

• Head of Household: $24,150

  
  

There are also additional deductions available:

• Age 65 or older / blind (2026):

  • $2,050 for single or head of household

  • $1,650 per qualifying spouse for married filing jointly

    
    

• New Senior Bonus Deduction (2025–2028):

  • $6,000 per eligible taxpayer age 65+

  • Subject to MAGI thresholds

    
    

Importantly, that $6,000 senior bonus applies whether you itemize or take the standard deduction. It’s on top of everything else.

So the real decision remains:

Do I take the standard deduction, or do I itemize?

And if you itemize, what actually counts?

The Three Itemized Deductions That Matter

For most households, itemizing comes down to just three categories:

1. Mortgage Interest: Though many of you reading this have already paid off your mortgage.

2. State and Local Taxes (SALT): Now temporarily more powerful due to the increased cap.

3. Charitable Giving: This is the centerpiece of this chapter—and the only one you truly control.

   
   

There are a few other itemized deductions, but they’re far less common.

Charitable giving is where planning makes a real difference.

Johnny and Suzie: Before and After the OBBB

Let’s bring this to life.

Johnny and Suzie give $20,000 per year to their local church. They also pay $19,000 in state and local taxes. Their mortgage is paid off.

Before the OBBB

• Charitable Giving: $20,000

• SALT Deduction: Capped at $10,000

• Total Itemized Deductions: $30,000

  
  

That’s below the $32,200 standard deduction.They wouldn’t itemize. Their generosity produced no additional tax benefit.

After the OBBB

• Charitable Giving: $20,000

• SALT Deduction: $19,000

• Total Itemized Deductions: $39,000

  
  

Just like that, Johnny and Suzie are itemizing.Their tax return improved instantly on July 4th, 2025.

But should they stop there?

In our opinion—absolutely not.

Enter Baby Step 7… and the Bridge Account

Johnny and Suzie have no mortgage. That likely means they’re living in Baby Step 7—living and giving like no one else.

Instead of a house payment, they’ve been building a brokerage (or “bridge”) account. Let’s assume it’s worth $50,000:

• $40,000 in contributions

• $10,000 in growth

  
  

Now the question becomes:

How do we give more wisely, not just generously?

Donor-Advised Funds: The Strategy That Changes Everything

A Donor-Advised Fund (DAF) is a charitable account that allows you to:

• Take an immediate charitable deduction

• While distributing gifts to charities over time

  
  

Here’s the key:

When you donate appreciated investments to a DAF, you do not realize the capital gain.

So Johnny and Suzie contribute their entire $50,000 brokerage account to a Donor-Advised Fund.

What happens?

• They avoid paying capital gains tax on the $10,000 of growth

• They receive a $50,000 charitable deduction, assuming they don’t meet certain phaseouts

• They can continue giving monthly to their church from the DAF

• Their personal budget no longer needs to fund charitable giving during the period of the DAF

• Those monthly dollars now refill their brokerage account instead

• They don’t miss out on any market growth, presumably because the DAF remains invested.

  
  

Over the next two to three years, they rebuild the brokerage account—this time with a $50,000 cost basis, not $40,000.

The Power of Bunching

Let’s look at the tax impact in the year they fund the DAF:

• Donor-Advised Fund contribution: $50,000

• SALT deduction: $19,000

• Annual Giving Before Funding DAF (assuming it was funded in late December): $20,000

• Total Itemized Deductions: $89,000

  
  

Compare that to the $39,000 they would have otherwise deducted.

That’s not clever accounting. That’s intentional stewardship.

Yes, there are limits on charitable deductions depending on income and whether you’re donating cash or appreciated assets. That’s why it’s essential to coordinate with a qualified tax professional—like the team at Whitaker-Myers Tax Advisors.

But make no mistake: this strategy existed before the One Big Beautiful Bill. The bill simply supercharged it.

A Limited Window, A Lasting Impact

The expanded SALT deduction is temporary. The planning opportunity is real. And the families who benefit most are the ones already inclined to give.

On that warm July night, as fireworks echoed across the Florida sky, it was hard not to feel grateful—not just for the freedoms we enjoy, but for the opportunity to steward wealth wisely, generously, and intentionally.

Sometimes the tax code rewards behavior that aligns with good values.

And when it does, it’s worth paying attention.

God bless America.