Big Beautiful Bill Breakdown: Fact, Fiction, and Strategy

On July 4th, 2025, President Trump signed into law the landmark “One Big, Beautiful Bill”, an 870-page tax overhaul that’s already being called one of the most significant pieces of tax legislation in decades. Whether you’re a business owner, investor, or simply trying to keep more of what you earn, understanding what’s inside this law is critical. Here are 10 of the of the most impactful changes you should know about and why they matter:

1. 100% Bonus Depreciation Is Back (And Permanent)

Under the new law, bonus depreciation isn’t just back, it’s here to stay. Any qualifying property with a useful life of 20 years or less, purchased after January 19, 2025, can be fully expensed in the first year. Even large-scale facilities like manufacturing plants and chip factories are eligible, making this provision a potential game-changer for capital investment and American production.

2. SALT Cap Raised (For Now)

The previous $10,000 limit on state and local tax (SALT) deductions has been temporarily lifted to $40,000 over the next four years. This will especially impact taxpayers in high-tax states like New York and California though the debate continues about whether taxpayers in low-tax states should foot the bill.

3. Expanded Deductions for Workers

Employees and service professionals will see expanded relief:

• The first $25,000 in tip income is now tax-free (with income caps).
• Up to $25,000 in overtime pay is also tax-free under similar thresholds.

4. Big Wins for Business Owners

Several provisions strengthen incentives for entrepreneurship:

• The Qualified Business Income (QBI) deduction is locked in permanently at 20%.
• The 1099 threshold has increased from $600 to $2,000—reducing paperwork headaches.
• Research and development (R&D) expenses can now be fully deducted again, encouraging innovation.

5. Estate Planning Relief

The estate and gift tax exemption is set permanently at $15 million per individual, indexed for inflation. This move will protect family-owned farms and businesses from forced sales to pay estate taxes—especially in states like Texas, where land values have soared.

6. The Return of Opportunity Zones

Investors will see renewed incentives to put capital into economically distressed areas. Gains can be deferred for five years and fully excluded after holding investments for ten years. Unlike the previous law, the timeline is simplified, with fewer “gotcha” dates.

7. New “Trump Accounts” for Children

Parents can now open tax-advantaged “Trump Accounts” to fund education or retirement for their children. Contributions are capped at $5,000 per year, but the government will contribute $1,000 annually for eligible low-income families.

Why This Matters

While this law will take months (and likely years) to fully understand, the fundamentals are clear: this bill is designed to incentivize American investment, support middle-class taxpayers, and make key deductions permanent.

As with any major policy shift, working with a qualified tax strategist is crucial to help you adapt your plans and maximize the benefits. If your CPA or tax preparer isn’t sure how to implement these changes, we can help!

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