Congress’ “Big Beautiful Bill” resets key tax rules for 2025 and beyond with several wins for owners and professionals. The 20% pass-through QBI deduction is made permanent and the phase-in ranges are widened, so more service businesses can benefit. One hundred percent bonus expensing returns for short-lived assets (and domestic R&D), letting you write off qualifying purchases in the year placed in service. New above-the-line deductions temporarily allow taxpayers to deduct up to $25,000 of tips and up to $12,500 of overtime premiums ($25,000 MFJ), subject to income phase-outs. The SALT cap is not repealed, but is eased for some taxpayers, while state PTET workarounds remain available. For families, the Child Tax Credit is $2,200 per child for 2025 (with up to $1,700 refundable) and is indexed thereafter—so revisit whether you still itemize. Seniors also get a new temporary “Senior Deduction” that layers on top of the age-65 add-on for 2025–2028.
Looking ahead to wealth transfer, the estate and gift exemption is set at about $15 million per person from 2026, so update gifting and trust plans now.
This article was first published on Bovell Financial.
