by Blair Butters | Aug 14, 2025 | General Tax and Accounting Information, IRS, Tax Credits, Tax Planning
What is the Big Beautiful Bill? Let’s cut through the noise. In July 2025, Congress passed a sweeping tax package officially known as the One Big Beautiful Bill (OBBB), later renamed H.R. 1. Whether you’re a homeowner, small business owner, electric vehicle driver, or someone who just wants to avoid IRS headaches, there are several tax changes that could directly impact your bottom line. Here’s what you need to know. Quick Highlights: OBBB 2025 Tax Changes For Individuals Tax Rates – 37% top rate made permanent SALT Cap – Raised to $40,000 in 2025 (with income limits) New Deductions (2025-2028) – Car loan interest (new U.S.-assembled vehicles), tip income, and overtime pay Senior Deduction – Up to $6,000 ($12,000 for couples) for those 65+ Home Energy Credits End – Must install by Dec. 31, 2025 EV Credits End – Must purchase and take delivery by Sept. 30, 2025 For Small Businesses QBI Deduction – Up to 20% made permanent Bonus Depreciation – 100% expensing made permanent Section 179 – Limit increased to $2.5M Energy-Efficient Deduction Ends – Must complete by June 30, 2026 1099 Threshold – Increases to $2,000 starting in 2026 What’s In It for Individuals and Families Tax Rates The OBBB permanently extended the tax rates passed in the Tax Cuts and Jobs Act (TCJA – 2017) with a top marginal tax rate of 37 percent. Without passage of the OBBB, marginal tax rates would have reverted to pre-TCJA rates, with a top marginal tax bracket of 39.6 percent starting in tax year 2026. SALT Limitations Increased The limitation on individual deductions for certain state and...
by dmaadmin | Nov 21, 2024 | General Tax and Accounting Information, Tax Planning
What Happens If the TCJA Expires in 2025? With the recent US election and administration change on the way, many people are asking, “how might this impact our taxes?” Specifically, what might happen when the TCJA expires in 2025. What is the TCJA? The Tax Cuts and Jobs Act (TCJA) is a comprehensive tax reform law passed by the U.S. Congress in December 2017 and signed into law by President Donald Trump. The TCJA introduced sweeping changes to the U.S. tax system that affected individuals, businesses, and corporations starting in 2018. The TCJA is currently in effect through the 2025 tax year for most individual provisions. These provisions, including the lowered tax brackets, the increased standard deduction, and changes to itemized deductions, are set to expire after 2025 unless Congress takes action to extend them. Starting in 2026, the tax laws are scheduled to revert to their pre-2018 levels, which has many taxpayers understandably concerned about how this could impact their finances. Here’s what you need to know about potential updates and how they might affect you: A Look at Key Provisions Likely to Change Individual Income Tax Rates: The TCJA temporarily lowered tax rates for individuals, reducing the percentage of income taxed across all income levels. Without action, these rates are set to return to higher, pre-2018 levels in 2026. Incoming President Trump and House/Senate Republicans are expected to advocate for making these lower rates permanent, but the final decision will depend on Congressional negotiations. More updates are likely in 2025. The Standard Deduction and Itemized Deductions One of the most impactful changes introduced by the TCJA was...
by dmaadmin | Oct 22, 2024 | Accounting, General Tax and Accounting Information, IRS, Tax Planning
The last quarter of the year is exciting and can also be a bit daunting. The weather is cooling, leaves are falling, the holidays are approaching. And then there are all the loose ends to tie up in our businesses that can feel a bit stressful or overwhelming. But what if we told you it doesn’t have to be that way? By doing a little each day, you can set yourself up for success so that you can relax and enjoy one of our favorite times of the year. As we near the end of 2024, there are several tax updates to be aware of and prepare for. And don’t worry, it’s nothing that your tax professional can’t handle but do we kind and give them plenty of time to support. 😉 1. New BOI Filing Requirement (Beneficial Ownership Information): What’s changing: Starting in 2024, certain small businesses will need to file Beneficial Ownership Information with the Financial Crimes Enforcement Network (FinCEN). This regulation aims to prevent money laundering by requiring companies to disclose the personal information of their beneficial owners. Who it affects: Small businesses, especially LLCs, corporations, and partnerships created in the U.S. or registered to do business in the U.S., are impacted. Some businesses, like publicly traded companies and sole proprietors, are exempt—but check with your tax professional to be sure it is required for you or not. Action: Small businesses should ensure they’re in compliance by gathering the necessary owner information before filing deadlines to avoid penalties. Want more detailed information about BOI filing requirements? Check out this recent blog post full of resources...
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