The QBI deduction and what’s new in the One, Big, Beautiful Bill Act
The One, Big, Beautiful Bill Act makes the qualified business income (QBI) deduction permanent. The deduction had been scheduled to end on Dec. 31, 2025. The QBI deduction is a significant tax benefit for many business owners. It allows eligible taxpayers to deduct up to 20% of QBI, which is generally defined as the net amount of qualified income, gain, deduction and loss from a qualified U.S. trade or business. Eligible taxpayers include sole proprietors and owners of pass-through entities, such as partnerships, S corporations and, usually, LLCs. The deduction is reduced or eliminated if the taxpayer’s income exceeds certain amounts. Contact us if you have questions about the QBI deduction.
Developing a comprehensive AI strategy for your business
Artificial intelligence (AI) may help your business streamline operations, improve customer interactions or uncover growth opportunities. However, getting the max benefit calls for a comprehensive strategy. First, identify specific challenges or goals that AI can help you overcome or accomplish. Second, insist on targeted and scalable investments that fit your budget and integrate well with existing software. Third, provide training to help ensure smooth adoption and increase your odds of a solid return on investment. Also, ease employee concerns about job loss or disruption. Last, establish how you’ll measure success and don’t hesitate to make adjustments if necessary. Contact us for help.
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 […]
What families need to know about the new tax law
The One, Big, Beautiful Bill Act (OBBBA) has introduced tax changes that could affect families. For example, parents who adopt may be eligible for more generous tax relief. Under current law, a tax credit of up to $17,280 is available for eligible costs of adoption in 2025. The credit begins to phase out in 2025 for taxpayers with modified adjusted gross income of $259,190. Beginning in 2025, the OBBBA makes the adoption tax credit partially refundable up to $5,000. This means that eligible families can receive this portion as a refund even if they owe no federal income tax. Previously, the credit was nonrefundable. Contact us if you have questions about how the new law affects your family.
The new law includes favorable changes for depreciating eligible assets
The One Big Beautiful Bill Act makes changes that will help business taxpayers. For example, there are now better rules for depreciating business assets. In addition to restoring 100% bonus depreciation, the new law makes favorable changes to Sec. 179 deductions. For eligible assets placed in service in 2025, the new law increases the maximum that can immediately be written off via first-year depreciation to $2.5 million (up from $1.25 million for 2025 before the law). A phase-out rule reduces the maximum Sec. 179 deduction if, during the year, you place in service eligible assets in excess of $4 million. (up from $3.13 million for 2025 before the law). Questions? Contact us.
How can your business set the stage for organic sales growth?
For businesses looking to reach the next level of success, there’s no bigger star than organic sales growth. It’s defined as achieving an increase in revenue through existing operations rather than from mergers, acquisitions or other external investments. How can you set the stage for growing sales organically? First, provide customer service that addresses problems quickly and exceeds expectations. Second, continuously adjust and improve marketing tactics to align with changing trends. And third, train all employees to contribute to sales while offering them valued benefits and a positive work environment. We can help you identify optimal strategies for achieving organic sales growth.
What the new tax law could mean for you
President Trump signed the One, Big, Beautiful Bill Act (OBBBA) into law on July 4. Here are some of the favorable changes that may affect you and your family. Starting in 2025, the child tax credit rises to $2,200 per qualifying child under 17 (up from $2,000). The deduction limit for state and local taxes (SALT) for 2025 is increased to $40,000. For 2026, the deduction limit rises to $40,400 and increases by one percent over the previous year’s amount in 2027–2029. The SALT deduction limit will return to $10,000 in 2030. The deduction is phased out for higher-income taxpayers. These are just a couple provisions in the massive new law. Contact us if you have questions about your situation.
Significant business tax provisions in the One, Big, Beautiful Bill Act
cccThe One, Big, Beautiful Bill Act was enacted on July 4. The new law includes favorable changes for business taxpayers. For example, it permanently restores the 100% first-year depreciation deduction for eligible assets acquired after Jan. 19, 2025. This is up from the previous 40% bonus depreciation rate. The law also allows taxpayers to immediately deduct eligible domestic research and experimental expenses paid or incurred beginning in 2025. Before the law was enacted, those expenses had to be amortized over five years. Eligible small businesses can generally apply the new immediate deduction rule retroactively to 2022. Contact us to learn more about how the law applies in your situation.
Tap into the 20% rehabilitation tax credit for business space improvements
If your business occupies a large space and you’re planning to relocate, expand or renovate in the future, consider the benefits of the rehabilitation tax credit. It’s equal to 20% of the qualified rehabilitation expenditures (QREs) for a qualified building that’s also a certified historic structure and meets other requirements. A QRE is any amount chargeable to capital and incurred in connection with the rehab (including reconstruction) of a qualified building. QREs can’t include building enlargement or acquisition costs. The 20% credit is allocated ratably over each year of the five-year period beginning in the year the building is placed in service. Interested? Contact us to discuss.
Understanding spousal IRAs: A smart retirement strategy for couples
Retirement planning can be especially critical for couples where one spouse doesn’t work outside the home. In such cases, a spousal IRA can be an effective tool. An IRA contribution is generally only allowed if you earn compensation. But an exception exists. A spousal IRA allows a contribution for a spouse who doesn’t work outside the home. For 2025, an eligible couple can contribute $7,000 to an IRA for each spouse ($8,000 if the spouse will be 50 by the end of the year). However, if the working spouse is an active participant in an employer retirement plan, a deductible contribution can be made to the nonparticipant spouse’s IRA only if the couple’s income is under a certain threshold.
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