One Big Beautiful Bill

Trump's new tax bill was signed into law on July 4, 2025. As with everything your overlords touch, it is filled with caps, limitations, expiration dates and complexity. Overall, it provides tax savings to many and had it not been passed, your taxes would have gone up sharply in 2026. So, let's take the win! Here are some quick tax highlights for your enjoyment:

 

 -Standard deduction increases to $15,750 single and $31,500 married 

-State tax deduction increases on Sch A from $10,000 to $40,000 

-Seniors over 65 get an extra $6,000 deduction 

-Child tax credit increases to $2,200 

-Business income deduction of 20% made permanent 

-Mortgage insurance is now deductible 

-Deduction up to $25,000 against tip income 

-Deduction up to $12,500 against overtime income 

-Car loan interest deduction up to $10,000 (for vehicles assembled in USA purchased after 12/31/2024) 

-100% bonus depreciation is back -Many clean energy incentives terminate (various dates from 9/2025 to 6/2026) 

-1099 reporting increased from $600 to $2,000 threshold 

I will continue to digest these new laws and will be involved in professional training (plus get professional therapy) so we are ready to play the tax game properly. As you look over these changes, think how they apply to you, your plans, your processes and let me know if you would like to discuss your action plans.

Here is a good outline with more details: https://www.journalofaccountancy.com/news/2025/jun/tax-changes-in-senate-budget-reconciliation-bill/?utm_source=mnl:cpal&utm_medium=email&utm_campaign=07Jul2025