The One Big Beautiful Tax Bill: What It Means for Business Owners and High Earners
The tax landscape just shifted again.
Congress has passed what’s being called the “One Big Beautiful Tax Bill,” and the changes it brings are anything but small. If you're a business owner, high-income W-2 earner, or investor, this new legislation could dramatically affect your tax strategy, deductions, and long-term planning.
But here’s the thing: tax changes don’t just create new rules. They create new opportunities, and only those who plan will benefit.
In this post, I’ll explain the bill's key highlights, what they mean for you, and the specific actions you should take right now to maximize your advantage.
1. 100% Bonus Depreciation Is Back, And It's Here to Stay
The ability to immediately deduct 100% of qualifying asset purchases is now permanent. This includes business equipment, technology, and even specific improvements and vehicles.
This is a game-changer for capital-intensive businesses.
But don’t get too excited just yet, a $200,000 deduction doesn’t equal $200,000 in tax savings. Your real benefit depends on your income, tax bracket, and how your business is structured.
What to Do: Before making big purchases, let’s project the tax savings based on your unique financial profile.
2. QBI Deduction Made Permanent (Yes, Finally)
The Qualified Business Income (QBI) deduction lets pass-through business owners deduct up to 20% of their qualified income—and it’s finally been made permanent. Plus, the income thresholds have increased, meaning more people now qualify.
This is huge for LLCs, sole proprietors, and S-Corps.
What to Do: If you’re close to the new income limits, now’s the time to fine-tune your income and payroll structure. We’ll ensure you’re not accidentally phasing out of this powerful deduction.
3. SALT Deduction Cap Raised to $40,000 (But with a Catch)
The State and Local Tax (SALT) deduction cap has been raised from $10,000 to $40,000 a significant win for high-tax states like California and New York.
But here’s the catch: the deduction phases out for individuals earning over $500K and couples over $1M AGI.
What to Do: We can help you explore income shifting, payment bunching, or PTE tax elections to keep you below the phaseout thresholds and maximize your deduction.
4. Above-the-Line Deductions for W-2 Earners
W-2 earners finally get some love. A new category of above-the-line deductions is now available, including tips, overtime, and interest on car loans for U.S.-assembled vehicles, even if you take the standard deduction.
What to Do: If you're a high-income employee with side income or bonus-heavy pay, now is a great time to evaluate how this deduction can reduce your overall tax liability.
5. Clean Energy Credits Are Disappearing Fast
If you’ve been considering solar panels, EVs, or energy-efficient upgrades, now is the time to act. These tax credits are being phased out sooner than expected.
What to Do: Let’s review what still qualifies and initiate your purchases or upgrades before the credits disappear.
6. Estate Tax Exemption Doubled, But Not Forever
The federal estate tax exemption has been increased to $15M per person (or $30 per couple). This offers an unprecedented window for wealth transfer, gifting, and estate planning.
But this window won’t stay open forever. Future legislation could cut this benefit significantly.
What to Do: If you have or are approaching this level of net worth, it’s time to explore advanced estate strategies, trusts, and family gifting plans.
Bonus: Don’t Forget the Estimated Tax Impact
With all these changes, there’s one constant: the IRS expects you to pay as you go. If you’re adjusting your deductions or income strategy, your quarterly estimated taxes must follow suit or you could face penalties.
Bottom Line: Don’t Wait to Plan
The One Big Beautiful Tax Bill is packed with benefits, but those benefits don’t happen automatically. They require strategic timing, thoughtful planning, and personalized execution.
At RBA Tax Advisors, we’re already helping clients take action—whether that means restructuring business income, maximizing bonus depreciation, or leveraging above-the-line deductions.
Now it’s your turn. Let’s get a plan that aligns with the new law and sets you up for maximum tax efficiency and long-term wealth building.
🔹 Click here to schedule your tax strategy session today.
Let’s make sure these tax changes work in your favor not against you
1. Do I automatically get the 20% QBI deduction if I own a business?
Not necessarily. The QBI deduction depends on your income level, business type, wages, and other factors. Many taxpayers miss out by not structuring their compensation or income properly.
2. If I pay more than $40,000 in SALT taxes, can I deduct the full amount?
Only up to the $40K cap, and that deduction phases out for individuals earning over $500K or couples over $1M. Planning is key to maximizing what you can deduct amounts over $40K
3. Is bonus depreciation still available for 2025 and beyond?
Yes! The new tax bill permanently established 100% bonus depreciation, meaning you can fully deduct qualifying business purchases in the year they are placed in service.
4. Do W-2 earners benefit from this tax bill, too?
New above-the-line deductions are now available for overtime, tips, and vehicle loan interest, especially if the vehicle is U.S.-assembled.
5. Are energy-efficient upgrades still eligible for tax credits?
Some clean energy credits are being phased out, but many are still active for a limited time. Now is the time to act if you’re considering solar, EVs, or commercial upgrades.
6. Will the estate tax exemption stay at $15M per person?
It’s doubled for now, but this increase may not last. This creates a rare window for high-net-worth individuals to implement tax-efficient wealth transfer strategies.
7. How do I know if I miss deductions or overpay taxes?
A proactive tax strategy session is the only way to know for sure. While most tax prep services look backward, we help you plan forward and optimize every opportunity.