One Big Beautiful Bill Is Law: What Can You Do If You Are A Business Owner?

The One Big Beautiful Bill (OBBB) is now law — and for business owners, that means it’s time to act fast. This legislation brings some of the biggest tax changes in years, particularly for small and mid-sized businesses.

So, what can you do to take advantage?

Here are five powerful strategies to help you maximize deductions, reduce taxes, and position your business for growth under the new rules.

1. Lock in the Permanent 20% QBI Deduction — But Only if You Qualify

What’s Changed:

The 20% Qualified Business Income (QBI) deduction has been made permanent for pass-through entities like sole proprietors, LLCs, S Corps, and partnerships — but you still need to meet income and business type requirements.

What You Can Do:

• Consider converting to an S Corporation to access both QBI and self-employment tax savings.

• Work with a CPA to structure salary vs. distribution for optimal tax treatment.

Example:

Dan earns $220,000 from his consulting LLC. By switching to an S Corp and taking a $90,000 salary, he qualifies for the 20% deduction on the remaining $130,000 — potentially saving $5,000+ in federal tax.

2. Use 100% Bonus Depreciation to Invest in Growth

What’s Changed:

OBBB restores 100% bonus depreciation through 2027, allowing full immediate deductions for qualified assets like equipment, software, and business improvements.

What You Can Do:

• Accelerate capital investments in machinery, tech, vehicles, or renovations.

• Time your purchases strategically to ensure assets are in service before year-end.

Example:

A dental practice spends $85,000 on digital X-ray equipment and chairs. With 100% bonus depreciation, they deduct the full amount in 2025, reducing taxes by over $17,000.

3. Take Advantage of the New $10K Personal Car Loan Interest Deduction (If You Don’t Use Your Car 100% for Business)

What’s Changed:

Under the One Big Beautiful Bill (OBBB), individuals can now deduct up to $10,000 in car loan interest on their personal tax returns — even if the vehicle is not used 100% for business. This is a brand-new opportunity for mixed-use vehicles.

Reminder: The business-use portion of car loan interest has always been deductible through your business. What’s new is that the personal-use portion can now be deducted on your personal return — up to $10,000.

What You Can Do:

• If you're a sole proprietor or gig worker using a personal vehicle partly for business, track your mileage and interest carefully.

• You can now deduct both the business-use portion and the personal-use portion, even if you don’t itemize — a major shift in tax policy.

Example:

Tina is a part-time real estate agent. She uses her personal car 70% for showings and client meetings and pays $7,000 in annual loan interest.

• She deducts $4,900 (70%) of that interest as a business expense.

• The remaining $2,100 (30%) is now deductible on her personal tax return — taking full advantage of the new rule and not wasting a single dollar of deduction.

4. Boost Retirement Contributions with New Limits and Credits

What’s Changed:

Contribution limits have increased across 401(k)s, SEP IRAs, and other plans. Plus, businesses now get larger credits for starting retirement plans — up to $5,000 per year for 3 years.

What You Can Do:

• Start a Solo 401(k) if you’re self-employed.

• Upgrade to a Safe Harbor 401(k) for bigger deductions and employee incentives.

• Max out contributions to lower your current tax liability.

Example:

A small business owner contributes $66,000 to her Solo 401(k). With expanded credits and deductions, she lowers her taxable income significantly and saves over $15,000 in tax.

5. Use Accountable Plans to Reimburse Personal Expenses Tax-Free

What’s Changed:

OBBB affirms and expands the use of Accountable Plans — letting S Corps and partnerships reimburse owners/employees for certain home office, vehicle, or phone expenses without treating it as income.

What You Can Do:

• Set up an Accountable Plan for your company (a simple written policy).

• Track and reimburse eligible expenses monthly.

Example:

Mike operates his digital marketing firm from home. With an Accountable Plan, he deducts $8,000 for internet, phone, utilities, and mileage — without adding it to his personal income, keeping his tax liability low.

The One Big Beautiful Bill is a game-changer — but only if you respond proactively. These strategies can dramatically reduce your tax bill and improve your business’s financial position. Mid-year is the perfect time to review your structure, spending, and deductions so you’re not scrambling at year-end.

Schedule a Discovery Call

Want to find out what this means for your specific situation? Book a FREE tax strategy session discovery with us — and don’t leave money on the table.