One Big Beautiful Bill Act (OBBBA) – Tax Breakdown for 2025 and Beyond

Описание: Welcome to Trust Planet Accounting Solutions! I’m Madhuri Shah, CPA and Founder, and in today’s video, we’re breaking down the massive new tax law signed on July 4th, 2025 — the One Big Beautiful Bill Act (OBBBA). Whether you’re a business owner, parent, senior, employee earning tips or overtime, or simply someone trying to stay ahead of tax changes — this video is for you.

For individuals and families, the biggest highlight is that the TCJA tax cuts are now permanent. The top tax bracket remains at 37%, and all brackets will now be inflation-indexed, which helps preserve purchasing power. The standard deduction has increased to $15,750 for singles and $31,500 for joint filers. For those aged 65+, a new $6,000 senior deduction has been introduced — but it starts phasing out above certain income levels and will expire after 2028 unless extended.

Parents will see relief through the increased Child Tax Credit — now $2,200 per child, inflation-adjusted, and made permanent. Plus, a temporary but powerful new category of deductions has been introduced for workers who earn cash tips or overtime. These forms of income can now be deducted from federal taxes — up to $25,000 for joint filers and $12,500 for single filers — though this benefit expires after 2028 and is phased out for higher earners.

Auto buyers also benefit under the OBBBA — interest on U.S.-made auto loans is now deductible (up to $10,000/year), a deduction available until 2029. And for education-focused families, there’s the introduction of Trump Education Accounts — tax-deferred savings accounts for parents and children, which include a $1,000 government match and allow annual contributions of up to $5,000.

For those with larger estates or those planning ahead for intergenerational transfers, the Estate and Gift Tax Exemption has increased to $15 million per individual, inflation-indexed and made permanent. Charitable contributions to private school voucher programs also get a boost, with new tax credits for donations up to 10% of AGI.

Now let’s talk about what the OBBBA does for businesses — because this is where the real tax strategy opportunities come alive.

The Section 199A Pass-Through Deduction (20%) is now permanent and expanded to cover more small businesses, including some service providers who were previously excluded. This helps sole proprietors, LLCs, partnerships, and S Corps keep more of what they earn. Bonus Depreciation is back at 100% — and made permanent. This allows businesses to write off the entire cost of qualified property in the year it's placed in service, helping with cash flow and reinvestment.

We also see a huge increase in the Section 179 expensing limits — the deduction limit is now $2.5 million, and the phase-out doesn’t begin until $4 million in asset purchases, giving businesses a much larger runway to write off new investments.

In addition, the bill eliminates the five-year amortization requirement for domestic research and development (R&D) expenses. These costs can now be fully expensed in the year they occur. The introduction of Section 174A also gives some businesses the ability to retroactively deduct past capitalized costs, creating refund opportunities and better forward planning for innovation-heavy industries.

If you’re in manufacturing or production, this bill is a game-changer. OBBBA introduces 100% expensing for certain types of real property, allowing companies to deduct the full cost of facilities, warehouses, and production buildings — instead of spreading that cost out over decades. This shortens the investment payback period and incentivizes facility upgrades.

Another major shift comes in how businesses can handle losses. Previously, excess business losses would convert to Net Operating Losses (NOLs) with limitations. Under OBBBA, loss carryforwards are made permanent and extended to estates and trusts, offering multi-generational planning flexibility.

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