Cardinal Point Wealth Management Alerts Cross-Border Taxpayers to Major Tax Law Changes in the "Big Beautiful Bill"

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TORONTO, ON - August 7, 2025 - Cardinal Point Wealth Management is advising Canadian and U.S. taxpayers of sweeping changes introduced by the recently enacted "Big Beautiful Bill," signed into law on July 4, 2025. This legislation represents one of the most significant overhauls of the U.S. tax system in recent years, with substantial implications for individuals, estates, businesses, and cross-border families.

As a leading authority on cross-border wealth and tax planning, Cardinal Point Wealth Management emphasizes the importance of proactive planning in light of these changes. The bill includes extensive reforms to income tax rates, estate tax exemptions, corporate tax incentives, and international tax compliance-all of which directly impact Canadians holding U.S. assets and U.S. citizens living in Canada.

Key Provisions of the "Big Beautiful Bill"

Individual Tax Updates

The legislation makes permanent the individual tax brackets introduced under the 2017 Tax Cuts and Jobs Act, avoiding a scheduled reversion to higher pre-2017 rates. Taxpayers will also benefit from an expanded standard deduction-$15,750 for individuals and $31,500 for joint filers in 2025-although elimination of the personal exemption remains.

For older taxpayers, an additional $6,000 standard deduction per person over age 65 is now available, subject to income phase-outs. A new permanent above-the-line charitable deduction of up to $2,000 for joint filers encourages continued charitable giving without itemizing.

However, the legislation introduces a new limit on itemized deductions for high earners, starting in 2026, and phases back the State and Local Tax (SALT) deduction cap for households earning between $500,000 and $600,000. That creates planning challenges for those who live in high-tax jurisdictions.

Estate and Gift Tax Enhancements

The lifetime estate, gift, and generation-skipping transfer tax exemption rises to $15 million per individual, indexed for inflation from 2026. This change eliminates the prior scheduled reversion to approximately $7 million in 2026, and provides couples with an effective $30 million exemption. While labeled "permanent," future legislative changes are still possible, which makes early planning critical for families seeking to secure these benefits.

For Canadians with U.S.-situs assets such as real estate, U.S. estate tax exposure remains at $60,000, although treaty-based credits can help offset liabilities.

Business and Investment Incentives

Business owners benefit from significant provisions, including the permanent reinstatement of 100% bonus depreciation and the continuation of the 20% Qualified Business Income Deduction (QBID) under Section 199A. Additionally, the bill expands the Qualified Small Business Stock (QSBS) gain exclusion, increasing the cap from $10 million to $15 million per shareholder and introducing tiered benefits based on holding periods.

Cross-border business owners should also note the Opportunity Zone program's extension and permanent deductions for research and development expenses, along with enhanced Section 179 expensing limits. These provisions present meaningful opportunities for strategic investment and structuring.

Planning Considerations for Cross-Border Taxpayers

Cardinal Point Wealth Management strongly urges all cross-border taxpayers to give immediate attention to the following "Big Beautiful Bill" changes:

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For U.S. Citizens in Canada: Review estate plans, optimize charitable giving, and consider accelerated income realization strategies under favorable tax brackets.

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For Canadians with U.S. Assets: Reassess U.S. real estate ownership structures and utilize treaty-based credits for estate tax mitigation.

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For Cross-Border Business Owners: Leverage new expensing rules and ensure alignment of U.S. and Canadian tax strategies to maximize available deductions.

"While the 'Big Beautiful Bill' offers compelling opportunities for tax optimization, it also introduces new risks," said Kris Rossignoli, Senior Private Wealth Manager at Cardinal Point. "Careful coordination between Canadian and U.S. tax systems is essential to avoid unintended consequences and maximize available benefits."

About Cardinal Point Wealth Management

Cardinal Point Wealth Management is a leading cross-border wealth management [https://cardinalpointwealth.com/cross-border-financial-and-tax-planning/moving-to-canada-from-the-u-s/] firm specializing in integrated financial planning for individuals and families with ties to both Canada and the United States. The firm's team of licensed advisors and tax professionals develops customized strategies that align investment management, retirement planning, and cross-border tax planning [https://cardinalpointwealth.com/cross-border-tax-planning/] to address the unique financial complexities of living, working, or retiring across two countries.

With deep expertise in cross-border financial planning [https://cardinalpointwealth.com/cross-border-financial-planning/], Cardinal Point ensures that clients remain fully compliant with the regulatory requirements of both jurisdictions while optimizing opportunities for tax efficiency and wealth preservation. Their comprehensive approach includes proactive tax optimization, risk management, and estate planning strategies, delivering peace of mind and clarity in an otherwise complex financial landscape.

Disclaimer: This press release may contain forward-looking statements. Forward-looking statements describe future expectations, plans, results, or strategies (including product offerings, regulatory plans and business plans) and may change without notice. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements.
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Company Name: Cardinal Point Wealth Management, ULC
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