As you are probably aware by now, the “One Big Beautiful Bill” passed the House on July 3rd and President Trump signed the Act into law on July 4th.
Among other things, the Bill contains numerous tax provisions that will not only keep tax rates where they have been, but will also create countless tax planning strategies for businesses and individuals.
Below are a few examples of these provisions. The most important thing to keep in mind is that there may be opportunities for you and your business to save tax dollars and increase cash flow, BUT you must contact us for an analysis of your situation to take full advantage of the savings.
Individual Provisions
- Existing tax rates made permanent
- Expansion of the standard deduction
- Increase in the SALT deduction
- No tax on tips and overtime
- Deduction for car loan interest
- Increase in child tax credit
- Section 199A “QBI” deduction permanently extended to 20%
- Extension of opportunity zone provisions
Business Provisions
- Permanently extends 100% bonus depreciation
- New bonus depreciation for manufacturing
- Ability to deduct 100% of domestic R&D expenses; small business with less than $30 million in revenue can retroactively make this change back to 2022
- Ease of restrictions on business interest and excess business loss provisions
- Section 179 expense and deduction caps raised
These are just a sampling of the provisions contained in the One Big Beautiful Bill. As the law has been signed, there will of course be more and more details that emerge.
Just be aware that the time to plan and make adjustments is now through the end of this year to take advantage of these changes.
