The One Big Beautiful Bill Act included a few key tax law changes for business owners. One extended an existing tax law, one restored a provision, and one eliminated a requirement.
Small Business Deduction
The new law permanently establishes the deduction of up to 20 percent of qualified business income for sole proprietorships, partnerships, and S-Corps.
100 Percent Expensing of Capital and Factory Investments
The bill restores the provision that allows businesses to expense 100 percent of capital investments made on or after January 19, 2025. However, some limits may apply.
1099-K
The new law sets the reporting limits at $20,000 and 200 transactions for transactions on cash apps.Note:The rule starts in 2025. It rolls back the $600 threshold set under the American Rescue Plan.
This is a high-level overview since the new rules for business owners only apply to a select number of people. If you think the change may affect you, please reach out. You should also consider speaking with your tax professional to see if you need to make any adjustments during 2025.
The content provided herein is based on our interpretation of the One Big Beautiful Bill Act and is not intended to be legal advice or provide a tax opinion. This is a summary only and not meant to represent all provisions within the Act.