Are you a small business owner and curious about President Trump’s “One Big Beautiful Bill”?
Below are some of the key benefits:
•QBI Deduction Increased and Made Permanent: The Qualified Business Income (QBI) deduction for pass-through entities (e.g., sole proprietorships, partnerships, S corporations) is increased from 20% to 23% and made permanent.
•Section 179 Deduction Expanded: The cap for immediate expensing of qualifying property under Section 179 is increased from $1 million to $2.5 million, with phase-outs beginning at $4 million.
•Bonus Depreciation Extended: Allows 100% bonus depreciation for qualified property acquired and placed in service after December 31, 2024.
•Research and Development (R&D) Expensing: Permits full expensing of R&D expenditures incurred in the U.S. from 2025 through 2029.
•Business Interest Deduction: Reinstates the ability to deduct depreciation and amortization when calculating the limit on business interest deductions.
•Estate Tax Exemption Increased: The estate tax exemption is increased to $15 million starting in 2026, adjusted for inflation thereafter.
•SALT Deduction Cap Raised: The State and Local Tax (SALT) deduction cap is increased to $40,000 for married couples earning under $500,000.
•Limitations on SALT Cap Workarounds: Disallows certain pass-through entities, particularly specified service trades or businesses (SSTBs), from utilizing state-level pass-through entity taxes (PTETs) to circumvent the SALT deduction cap.
•Support for Small Business Growth: The bill includes provisions aimed at enhancing small business relief and promoting investment in domestic manufacturing, with projections of securing over 7 million jobs in the next four years.
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