The big beautiful tax bill of 2025 has been enacted, finally, bringing significant changes.

Overall, the bill largely extends the benefits under the 2017 tax law with a few additional tax savings for special groups. Here are a few changes most relevant to our clients.

Key Provisions of the Big Beautiful Bill:

• Businesses stand to benefit the most. QBI (Qualified Business Income) deduction is now permanent. This means you are basically taxed on 80% of your business profit, and not 100%. 

• Residents of high tax states (e.g. CA and NY) States will benefit from the increased State and Local Tax (SALT) deduction of $40,000. PhaseOuts for above $400K – $500K in income. The deduction reverts to $10,000 for incomes above $500K. 

• Bonus Depreciation is restored to 100%. Plus you can write off up to $2.5M in certain assets when first placed in business (vehicles, software, equipment, etc under section 179. 

• Capital Gains invested in Qualified Opportunity Zones can be permanently eliminated if held for 10 years. This is a great way to defer gain on the sale of capital assets like a home or stock.

• Employees/Founders of Tech Startups: 
  • QSBS (Qualified Small Business Stock) gain exclusion increased to $15M from $10M  and allows a partial benefit for stock held from 3 years. This is one the most significant benefits if you own stock in a company under $75M in value. 
  •  R&D credit for any amount paid for software development 

There are many other changes in the bill which will be applied when your return is prepared. However, if you expect a significant impact, contact us for an individual review.