If there’s one thing I’ve learned as a CPA with nearly a decade of industry experience, it’s this: tax laws are never boring. Okay, maybe sometimes they’re boring. But not this year. Congress just dropped the One Big Beautiful Bill Act, a sweeping set of tax law changes that could shake up how both small businesses and high net worth individuals manage their money. While some see this as another maze of rules, myself and other colleagues within my industry, see it as a treasure map—if you know where to look, there are plenty of gold coins to be found.
This bill was born out of economic necessity. With the sunsetting of many provisions from the 2017 Tax Cuts and Jobs Act (TCJA) on the horizon, some adjustments were needed, and lawmakers decided to step in and take action.
Major Changes for Small Businesses
Here’s the overview of important changes business owners should be aware of:
- QBI Deduction Enhanced – Maintains the 20% pass-through deduction and expands the phase-in range(s).
- Section 179 Expensing Doubled – Increases the maximum allowable deduction to $2.5 million in qualifying property, with higher phaseouts, subject to inflation.
- Bonus Depreciation Back at 100% – Reinstates the 100% bonus depreciation through 2029. Making this a massive immediate tax deduction for capital expenses.
- Employer-Provided Childcare Credit Expanded – Small businesses can now claim up to 50% (and higher dollar limits) on childcare facilities and services.
- R&E Expensing Reinstated – Domestic research gets fully expensed retroactively starting January 1, 2025. Foreign R&E remains at 15-year amortization.
- 1099 Reporting Threshold Raised – 1099 reporting requirement increases from $600 to $2,000.
Major Changes for Individuals
There were some BIG wins for individuals as well:
- Current Tax Brackets Made Permanent – No jump back to pre-2017 levels. The seven brackets (10%, 12%, 22%, 24%, 32% and 37%) will remain, with annual adjustments for inflation.
- Standard Deduction Increases – Permanently increases the standard deduction as of January 1, 2025. Resulting in instant benefits for the upcoming tax compliance season.
- Child Tax Credit Sweetened – Permanently bumped to $2,200 per child, with $1,700 refundable. Tighter rules for claiming benefits.
- Estate & Gift Tax Relief – Permanently increases exemption to $15 million.
- SALT Cap Raised – Retroactively increases the legal limit on the amount of state and local tax (SALT) deductions a taxpayer can claim on their federal return to $40,000 for 2025, with an expected 1% increase starting 2027 until 2030 when it reverts back to $10,000.
- New Deductions – Notable newer deductions include deductions for tips, overtime, car loan interest, and even a bonus for seniors. The general consensus is: “Work hard, drive American, and age gracefully—we’ve got you.”
How to Maximize Your Benefits with Tax Planning
Now that you’re aware of the changes that will be impacting your business and personal finances in the upcoming year(s), here are some tax planning strategies to consider according from a CPA’s perspective:
- Review Your Entity Structure – With changes to corporate tax rates, pass through entity deductions, loss limitation and adjustments, incentives for restructuring/investment, and qualified business income, it’s worth re-evaluating whether your S-Corp, Partnership, or LLC setup is still the best fit. (navigate to my previous Blog to gain a deeper understanding on selecting the correct entity structure)
- Accelerate Investments – Take advantage of 100% bonus depreciation while it lasts. It’s time to reevaluate your business expansion plans. Buying equipment or upgrading facilities now could save thousands.
- Estate Planning – Lock in that $15 million exemption through year-end corporate gifting strategies and trusts setups.
- Maximize Credits – Planning for childcare can be made simpler by maximizing the refundable portion of your allowable credits to offset actual childcare costs.
- Stay Ahead of State & Local Tax – High-income earners in high-tax states should revisit their SALT strategy with the new $40k cap.
Remember: tax planning isn’t just about this year’s bill—it’s about positioning your business and wealth for the future.
Wrapping it up
The One Big Beautiful Bill Act is more than a stack of legal jargon—it’s a roadmap to saving money, if you know how to read it. For small businesses, it’s an invitation to invest, grow, and reward your teams. For high-net-worth individuals, it’s a chance to shore up estate and wealth strategies for generations.
And here’s the truth: while the law is written for everyone, the opportunities are unlocked only by those who plan ahead. If you’re wondering how these changes affect your business or personal finances, I’d love to help you chart the course. Feel free to email or send me a message.
