Michigan’s Decoupling from Federal Bonus Depreciation and Section 179 Expensing under The One Big Beautiful Bill Act (OBBBA)
The federal 2025 Act, also known as the One Big Beautiful Bill Act (OBBBA), made significant changes to federal depreciation rules. It permanently reinstated 100% bonus depreciation for qualified property acquired after January 19, 2025, and increased the Section 179 expensing limit to $2.5 million with a $4 million phase-out threshold, both indexed for inflation. […]
Charitable Giving Reimagined: Understanding Deduction Changes Under the One Big Beautiful Bill Act (OBBBA)
The recently enacted One Big Beautiful Bill Act (OBBBA) has ushered in a wave of reforms to the U.S. tax code, including sweeping changes to charitable contribution deductions. These changes will take effect in the 2026 tax year. Whether you are a donor seeking to maximize your tax efficiency or a nonprofit professional aiming […]
New $10,000 Auto Loan Interest Deduction Under the One Big Beautiful Bill Act (OBBBA)
Signed into law on July 4, 2025, the One Big Beautiful Bill Act (officially the ‘Big Beautiful Bill,’ or OBBBA) is a sweeping tax and budget package. Among its many changes, one measure stands out for individuals and the auto market: a new auto loan interest deduction available beginning in tax year 2025! Important details […]
Payroll tax implications of new tax breaks on tips and overtime
For 2025–2028, the One Big Beautiful Bill Act creates a new federal income tax deduction that can offset up to $25,000 of annual tip income. It begins to phase out when income is more than $150,000 ($300,000 for joint filers). The deduction is available if a worker receives tips in a job designated as one where tips are customary. However, the U.S. Treasury Dept. has released a draft list of occupations it proposes to receive the tax break and there are some surprising jobs on it, including plumbers, electricians, digital content creators and movers. Tips can be paid in cash, with credit cards or through tip-sharing arrangements. The deduction can be claimed even if a worker doesn’t itemize.
Investing in qualified small business stock now offers expanded tax benefits
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The preferential tax treatment of qualified small business (QSB) stock is getting even better under the One Big Beautiful Bill Act (OBBBA). Generally, taxpayers selling QSB stock can exclude 100% of the gain if they’ve held the stock for more than five years. The OBBBA provides a 75% exclusion for QSB stock held for four years and a 50% exclusion for QSB stock held for three years. These exclusions go into effect for QSB stock acquired after July 4, 2025. The OBBBA also increases the asset ceiling for QSBs from $50 million to $75 million (adjusted for inflation after 2026) for stock issued after July 4, 2025. Additional requirements apply. Contact us to learn more.
Unlocking Bonus Depreciation: The One Big Beautiful Bill Act (OBBBA)
The OBBBA, signed into law on July 4, 2025, reinstates and strengthens several tax incentives. A significant change in this tax incentive was a renewal of the 100% bonus depreciation—originally introduced under the 2017 Tax Cuts and Jobs Act (TCJA). What is Bonus Depreciation? Bonus depreciation allows a business to accelerate the depreciation of qualifying […]
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