07/06/2025
It's cryptic. It's incomplete, I know.
A connection asked me about the Big Beautiful Bill's impacts on small businesses. I think these changes are all scheduled to be effective Jan 1 2026.
While many benefits affect the individual's filings, there are lots of benefits for small business owners. I am not a CPA and the info is just now starting to flow out, but this is what I'm seeing so far:
The (2017) Qualified Business Income 20% deduction, which was set to expire at end of this year has been extended permanently now.
Companies who perform research and experimental development used to have their (often very pricey) expenses amortized (spread out over) 5 years no longer have to amortize those expenses.
Section 179 of the Internal Revenue Code had allowed $1M (eligible threshold) of tangible property purchase expenses to be depreciated in the first year (year purchased) and not amortized over the useful life of the property/equip. Subject to some calcs of course! The eligible amount has now been increased to $2.5M - less the cost of the purchase over $4M.
Other changes :
Employer provided child care
Hiring Credit $6K per new FT employee - minimum 1 year employment
Technology credit up to $10K for cloud, workflow automation or cybersecurity
For companies with under $5m gross revenues, the "blended" revised tax bracket for combined Fed Income + State Income + Self Employment taxes drops from 29% to 24%
Check with your CPA to determine your businesses eligibility and sort out any details.
😅
