The "One Big Beautiful Bill": 2025 Tax Planning Opportunities You Can’t Afford to Miss

Get ahead of the curve with Smart Tax Strategies

As a business owner, investor, or high-net-worth individual, staying ahead of tax changes isn’t just smart—it’s strategic.

Just after midnight on Thursday, May 22, the House narrowly passed a sweeping multi-trillion-dollar tax and spending package, “One Big Beautiful Bill", by a 215–214 vote, sending it to the Senate for final consideration. This landmark legislation builds on and expands key provisions from the 2017 Tax Cuts and Jobs Act (TCJA), offering a range of powerful tax-saving opportunities. Here's a breakdown of the top opportunities—and how you can act now to take full advantage.

1. The Return of 100% Bonus Depreciation: Your Cash Flow Accelerator

• What Changed: 100% bonus depreciation is back—retroactively available for property acquired after January 19, 2025, and placed in service before January 1, 2030.

• Why It Matters: This provision allows businesses to immediately deduct the entire cost of qualifying property instead of depreciating it over time. For real estate investors, manufacturers, and equipment-intensive businesses, this can unlock substantial up-front savings and liquidity.

• What You Can Do: If you’re acquiring property or investing in capital assets, now’s the time to structure those purchases strategically. We’ve helped clients uncover millions in accelerated depreciation opportunities—let us help you do the same.

2. Section 199A Deduction Increased to 23%: A Bigger Boost for Pass-Through Income

• What Changed: The qualified business income (QBI) deduction for active trade businesses and pass-through entities will increase from 20% to 23%.

• Why It Matters: This means more after-tax income for S corporations, LLCs, partnerships, sole proprietors, and even certain active rentals—making the pass-through structure and actively managed income streams even more attractive.

• What You Can Do: Ensure you qualify for the QBI deduction and optimize your entity structure. We’ve seen countless missed savings around QBI—our team can help you model the benefit and fine-tune wages, assets, or aggregation strategies to maximize results.

3. Opportunity Zones 2.0: Your Capital Gains Deferral Strategy

• What Changed: The Opportunity Zone program is extended beyond its original 2026 sunset, with a refreshed, rural-focused map taking effect from 2027 through 2033.

• Why It Matters: Investors can continue deferring capital gains while accessing significant step-ups in basis. However, the upcoming changes mean timing and location decisions are more critical than ever.

• What You Can Do: If you’re planning significant capital gains events, consider how Opportunity Zone reinvestments might align. We’ve guided clients through millions in OZ transactions—let’s discuss how to navigate the transition and leverage the new map.

4. SALT Cap Reforms: New Limits and New Planning Needs

• What Changed: The bill proposes removing the $10,000 SALT cap introduced by the TCJA, but introduces new restrictions under Section 275 that may limit deductions for certain state, local, and foreign taxes.

• Why It Matters: This change could impact high-income taxpayers and owners of pass-through businesses, particularly those in high-tax states.

• What You Can Do: Review your itemized deduction strategies and entity structure. Early planning will help preserve deductions under the updated rules and avoid surprises in your state filings.

5. Car Loan Interest Deduction: A Personal Use Break

• What Changed: From 2025 through 2028, qualified personal-use vehicle loan interest (on U.S.-assembled vehicles) will be deductible—up to $10,000 annually. This benefit phases out starting at $100K MAGI ($200K for joint filers).

• Why It Matters: For the first time in decades, individuals may deduct interest on certain car loans—creating a unique opportunity for qualified buyers.

• What You Can Do: If you're considering a personal vehicle purchase, timing it after 2024 may unlock a new layer of tax savings. We’ll help you determine eligibility and optimize the benefit.

6. Estate & Gift Tax Exemption: A Permanent Boost for Legacy Planning

• What Changed: The estate, gift, and generation-skipping transfer tax exemptions will be permanently increased to $15 million, indexed for inflation after 2025.

• Why It Matters: This opens the door to powerful legacy and wealth transfer strategies, offering long-term certainty for families focused on generational planning.

• What You Can Do: Now is the time to reassess your estate plan. Consider gifting, trust structuring, and valuation strategies to fully utilize the expanded exemption before any future changes.

7. TCJA Rate Extensions: Long-Term Certainty for Taxpayers

• What Changed: The lower individual income tax rates established under the TCJA will be made permanent, along with adjustments to how inflation is calculated for tax brackets.

• Why It Matters: Greater long-term clarity allows high earners and business owners to better project cash flow, plan distributions, and implement income-smoothing strategies.

• What You Can Do: Use this window of certainty to coordinate income and gain recognition, aligning deductions and investment timing with favorable tax brackets.

8. No Tax on Tips: A Boost for Service Industry Workers

• What Changed: The bill includes a proposal to exempt tips from federal income tax for workers earning less than $160,000 annually.

• Why It Matters: This provision could provide meaningful tax relief for millions of service industry employees—think restaurant servers, bartenders, and hospitality workers—by allowing them to keep more of what they earn. However, critics argue it could create compliance challenges and raise concerns about fairness in the broader tax system.

• What You Can Do: If you're an employer or worker in the service sector, now is the time to understand how this potential change could affect payroll reporting and your annual tax filing.

Next Steps

Tax law is constantly evolving, but the best time to plan is before the rules take effect. I As the bill advances to the Senate, its provisions remain subject to change, with potential implications for fiscal policy, federal funding, and various sectors of the economy. While the final outcome is still uncertain, now is the time to get ahead. If you’re looking to reduce your tax liability, unlock new strategies, and build long-term wealth, let’s talk.

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