Overview of the One Big Beautiful Bill
The One Big Beautiful Bill (OBBB) has a lot of different tax positions and changes that will have an impact on you, our clients, in many ways. We hope that this high-level overview helps you understand what is changing with the tax code.
For more information, please register for our free webinar for an overview of tax code changes following the One Big Beautiful Bill.
When: Tuesday, August 19, 2025 at 11 am MST
(1 pm EST / 12pm CST / 10am PST)
Where: Virtual (link to follow)
Please register here >> Webinar
The bill keeps the better tax brackets – this allows for the top bracket, and they are adjusted for inflation every year
Standard deductions are also kept at higher amounts and adjusted for inflation
Taxes and tips – a good chunk of tips are now not subject to tax….mostly.
a. Temporary 2025-2028
b. Up to 25K
c. Needs to be for businesses where tips are regular and customary
d. Phase outs do exist!
Taxes and OT
a. Temporary 2025-2028
b. Up to $12500, and is related to Fair Labor Standards Act of 1938 that is excess of the regular rate
c. Phase outs also exist!
The OBBB makes the QBI (Qualified Business Income) permanent
a. In our webinar we will talk more about what this is and what types of entities this applies to
Bonus depreciation is back! It is permanently at 100% in year 1 after 01/19/2025. Assets purchased 01/01-01/19 do not get this treatment.
Section 179 Depreciation is a great tool for certain assets and now this is raised up to $2.5 million per year, adjusted for inflation. You will lose the ability to use 179 starting at $4.5 million of section 179 property put into service.
a. We will dig into this more in the webinar as depreciation methods can be used as a strategy for the long run.
SALT (state and local tax) deduction changes – for those that pay state level tax these deductions are raised at the personal return level to allow for you to get credit for paying state level taxes. This went from 10K per year to 40K. There are phase outs after 500K of Modified Adjusted Gross Income. This is only raised through 2029.
a. The PTE work around is still in play. We will dig into this more in our webinar!
Estate and Gift tax (also known as the death tax) increases have been made permanent. This means that the first $15 million per person is exempt from gift and estate tax.
Qualified Opportunity Zones – these are made permanent, however there are some nuances.
a. There will be new Oz’s every 10 years, it is a new law and not an extension of the old one.
b. Tighter requirements for these OZ’s.
c. 2026 is an omitted year, 2027 is when the new year will start.
R&E Credit – 20%! We will dig into this in more detail as well, as it can impact a lot more people than you think!
Personal casualty losses disallowed completely except for losses resulting from federally or State declared disasters
Excess business loss is now permanent. This means that excessive losses above $313K/626K (Single/MFJ) for a year convert to NOL for use in future years.
Senior deductions for those 65 and older! $6000 each for both those that itemize and those that do not.
a. Temporary 2025-2028
b. Phase outs also exist.
Car loan interest deduction – may deduct up to $10K annual in interest paid on qualified car loans
a. Temporary 2025-2028
b. New and assembled in America
c. Personal use vehicles (no trailers, ATVs, campers)
AMT band aides – we will dig into this more in the webinar
“Trump Accounts” – similar to a Roth, but not…
a. Parents open and contributions are to be after July 4, 2026 for children under 18
b. Government seeds the account with $1000 for kids born 2023-2028
c. We will peel this one apart in our webinar!
1202 Stock Changes – this is qualified small business stock and can help you with gains tax
1099-MISC and 1099-NEC – If you are required to file 1099s and if your business pays them more than $2,000/year, then you file. That’s up from $600/year.
Changes to percentage of completion on building projects for builders!
There is so much more….stay tuned and join us for our webinar to learn more!