As 2025 draws to a close, business owners have more certainty regarding many tax provisions that were previously set to expire. The One Big Beautiful Bill Act (OBBBA) preserved many provisions from the Tax Cuts and Jobs Act, made others permanent, and clarified the direction of federal tax policy heading into 2026.
Maximize the QBI Deduction
The 20% deduction for qualified business income (QBI) for sole proprietors, S corporation shareholders, and partners has now been made permanent. If your taxable income remains below $197,300 (or $394,600 if married filing jointly), you can generally deduct the full 20% of your QBI.
Capital Investment: Depreciation and Expensing
The OBBBA restores 100% bonus depreciation permanently for qualified property acquired and placed in service after January 19, 2025. The Section 179 deduction cap is increased to $2.5 million, with the phase-out threshold raised to $4 million.
Business Losses and Excess Business Loss Rules
Non-corporate taxpayers cannot offset more than $313,000 (single) or $626,000 (married filing jointly) of business losses against other non-business income. Losses above these thresholds are carried forward as a net operating loss.
Retirement & Savings Strategies
Retirement plan contributions continue to be a key tax-saving strategy. If your business has not yet established a retirement plan, 2025 remains a strong year to do so.
Tailor Your Strategy Now
With many major business tax provisions now permanent or clarified under the OBBBA, tax planning in 2025 is less about anticipating sweeping legislative change and more about maximizing opportunity within a clearer framework.
