What Is the One Big Beautiful Bill?
Signed into law on July 4, 2025, the One Big Beautiful Bill (OBBB) is a major tax update. It builds on the 2017 Tax Cuts and Jobs Act, bringing new deductions and rules that directly impact small business owners, Realtors, and independent contractors. (Small Business Tax Guide 2025: Benefits from the Big Beautiful Bill)
Let’s break it down and make sense of what’s inside — and how it helps you.
What It Means for Entrepreneurs, Agents, and Freelancers
Whether you’re running a small business, working as a Realtor, or building a freelance career, this bill likely affects your bottom line in a big way.
1. QBI Deduction (Still Here and Permanent)
If you’re a pass-through entity (sole prop, LLC, S Corp), you can keep deducting 20% of your qualified business income. This is one of the biggest wins.
2. SALT Deduction Increases
State and local tax deduction cap jumps from $10,000 to $40,000 until 2029. If your income is under $500k, you get the full benefit.
Bonus: If your business pays SALT at the entity level, you could bypass the cap entirely.
3. Bonus Depreciation Stays at 100%
Bought a laptop, camera, car, or office furniture? You can deduct the full cost in the year you buy it. Plan those upgrades!
4. Easier Deductions for R&D
Doing research, testing, or experimentation? You can now deduct those expenses upfront. Missed it in 2022-2024? You may still be able to amend your returns.
5. 1099 Threshold Rises
Starting in 2026, you’ll only need to send a 1099 if you pay someone $2,000 or more. That’s up from the current $600 limit. Great news for anyone juggling a lot of payments.
6. Deducting Tips and Overtime
From 2026 to 2028, tip workers and hourly freelancers can deduct up to $25,000 in tips and $12,500 in overtime from their taxable income. Not everyone qualifies, so check the income limits.
7. Bigger Loss Deductions
Had a rough year? Married filers can now deduct up to $626,000 in business losses. Single? You can deduct up to $313,000.
But There Are a Few Catches
- The bill could add $4-5 trillion to the national debt.
- Green energy credits end after 2025.
- Some public programs may face cuts (think: Medicaid, SNAP).
- The IRS is watching for misclassification of employees as contractors more closely. Stay legit.
Quick Action Steps
- Revisit your tax strategy now, not later.
- Make purchases this year to take full advantage of bonus depreciation.
- Track tips and OT if you plan to deduct them.
- Review your business structure for tax efficiency.
- Stay up to date on IRS classification rules.
Have questions about how much you’re overpaying on your taxes and how to stop? Give us a call today at (972)-446-1040 or Click Here To Schedule Your Free Second Opinion! (Small Business Tax Guide 2025: Benefits from the Big Beautiful Bill)