If you have questions about how the One Big Beautiful Bill impacts your business or individual tax returns, contact Tax Attorney Abtin Barzin at (949) 584-2578
SALT Cap increases to $40,000 for taxpayers with MAGI under $500,000. Consider how this impacts the PTE election for your corporation. 30% phase down for MAGI up to $600,000. As income rises the $40,000 SALT cap phases down to $10,000, highest income taxpayers can deduct up to $10,000 in SALT
Elimination of Previously Owned Clean Vehicle Credit Section 25E after September 30, 2025
Elimination of Clean Vehicle Credit Section 30D after September 30, 2025
Elimination of Qualified Commercial Clean Vehicle Credit Section 45W after September 30, 2025
Elimination of the Energy Efficient Home Improvement Credit Section 25C after December 31, 2025
Elimination of Residential Clean Energy Credit Section 25D after December 31, 2025
No tax on overtime
No tax on tips
Tax brackets remain the same from the Tax Cuts and Jobs Act from 10% to 37% indexed for inflation
Slight increase in the standard deduction for 2025 $15,750 single, $31,500 for married filing jointly, and $23,625 for head of household filing status filers
Return of 100% bonus depreciation
Return of research and experimental expenditures expense treatment
1099 thresholds increase. 1099-MISC and 1099-NEC increased to $2,000 for payments made starting in 2026.
Changes to definition of Qualified Small Business Stock Section 1202, increase in benefits
Raises estate, gift, and GST tax exemption
QBI deduction Section 199A is made permanent, changes to limit phase-ins for specified service trades or businesses
Tax treatment for opportunity zones made permanent
Employee business expenses elimination is permanent, miscellaneous itemized deductions elimination is permanent
Charitable contributions deduction without itemizing, itemizers have floor imposed
Expands qualified higher education expenses for Section 529 Plans
International tax law changes to GILTI/Net CFC Tested Income, Foreign Tax Credit, eliminates QBAI, changes to FDII/Foreign Derived Deduction Eligible Income, BEAT , Controlled Foreign Corporation rules
Not a comprehensive list, more of an introduction