{"id":81,"date":"2025-10-07T20:20:09","date_gmt":"2025-10-07T20:20:09","guid":{"rendered":"https:\/\/deaconcpa.com\/blog\/?p=81"},"modified":"2025-10-07T20:20:09","modified_gmt":"2025-10-07T20:20:09","slug":"5-beautiful-tax-reduction-strategies-under-the-one-big-beautiful-tax-legislation","status":"publish","type":"post","link":"https:\/\/deaconcpa.com\/blog\/2025\/10\/07\/5-beautiful-tax-reduction-strategies-under-the-one-big-beautiful-tax-legislation\/","title":{"rendered":"5 Beautiful Tax Reduction Strategies Under the One Big Beautiful Tax Legislation"},"content":{"rendered":"\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"724\" height=\"483\" src=\"https:\/\/deaconcpa.com\/blog\/wp-content\/uploads\/2025\/10\/GettyImages-2219881058-1.jpg\" alt=\"Closeup of the documents of the One Big Beautiful Bill Act (OBBBA), a budget reconciliation bill in the 119th United States Congress.\" class=\"wp-image-82\" srcset=\"https:\/\/deaconcpa.com\/blog\/wp-content\/uploads\/2025\/10\/GettyImages-2219881058-1.jpg 724w, https:\/\/deaconcpa.com\/blog\/wp-content\/uploads\/2025\/10\/GettyImages-2219881058-1-300x200.jpg 300w\" sizes=\"auto, (max-width: 724px) 100vw, 724px\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">The recently passed&nbsp;<strong>One Big Beautiful Bill (OBBB)<\/strong>&nbsp;\u2014 often called the&nbsp;<strong>One Big Beautiful Tax Act<\/strong>&nbsp;\u2014 introduced some of the most significant tax changes in years. For small business owners and self-employed professionals, these updates open new opportunities to save money, invest in growth, and plan smarter.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Here are&nbsp;<strong>five \u201cbeautiful\u201d tax reduction strategies<\/strong>&nbsp;to help you make the most of the new law.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>1. Maximize the 20% Pass-Through Deduction (QBI)<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The One Big Beautiful Tax Act made the&nbsp;<strong>20% Qualified Business Income (QBI)<\/strong>&nbsp;deduction&nbsp;<em>permanent<\/em>&nbsp;\u2014 a huge win for entrepreneurs, professionals, and family businesses. This deduction applies to income from S corporations, partnerships, and sole proprietorships.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>How to take advantage:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Ensure your business structure qualifies (LLC, S Corp, partnership).<\/li>\n\n\n\n<li>Keep taxable income within the phaseout thresholds, especially for service businesses like accounting, law, or consulting.<\/li>\n\n\n\n<li>Use pre-tax retirement contributions, depreciation, and expense planning to manage your income levels strategically.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Even a well-timed retirement plan contribution can mean the difference between qualifying for or losing part of this valuable deduction.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>2. Use 100% Bonus Depreciation and Expanded Section 179<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">One of the most immediate ways to lower your tax bill is through&nbsp;<strong>accelerated expensing<\/strong>. The new law restored&nbsp;<strong>100% bonus depreciation<\/strong>&nbsp;and increased&nbsp;<strong>Section 179<\/strong>&nbsp;expensing limits to $2.5 million, allowing small businesses to deduct the full cost of qualifying equipment, vehicles, or technology in the year of purchase.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>How to use it:<\/strong><br>If you\u2019ve been delaying capital upgrades \u2014 buying new computers, software, or machinery \u2014 now may be the perfect time. Making qualified purchases before year-end can dramatically reduce your taxable income for 2025.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This is one of the simplest and most powerful tax-saving tools available to business owners.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>3. Revisit R&amp;D Tax Deductions<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The Act allows&nbsp;<strong>immediate expensing for R&amp;D (research and development) costs<\/strong>, reversing the previous requirement to amortize over five years. This change benefits a wide range of businesses, not just tech or biotech companies.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Who qualifies:<\/strong><br>Businesses that invest in&nbsp;<strong>innovation, process improvement, or software development<\/strong>&nbsp;\u2014 even small firms developing internal systems or new service models \u2014 can qualify.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Action step:<\/strong><br>Document your R&amp;D activities carefully and work with your CPA to determine whether past or current expenditures can be deducted or credited. You may even be eligible to amend prior returns for additional savings.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>4. Optimize State and Local Tax (SALT) Deductions<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">For many small business owners, the prior $10,000 cap on&nbsp;<strong>state and local tax deductions<\/strong>&nbsp;was painful. The new law raises the limit to&nbsp;<strong>$40,000 for joint filers<\/strong>, providing significant relief in high-tax states.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>How to use it:<\/strong><br>Combine the new SALT cap increase with a&nbsp;<strong>Pass-Through Entity Tax (PTET)<\/strong>&nbsp;election, where available. This allows state income taxes to be paid at the business level and deducted as an ordinary business expense \u2014 often producing thousands in additional tax savings.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Your CPA can help evaluate whether a PTET election makes sense for your situation and state.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>5. Take Advantage of New Credits for Employee Benefits<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The One Big Beautiful Tax Act expanded tax credits for small businesses that provide&nbsp;<strong>childcare assistance<\/strong>,&nbsp;<strong>paid family leave<\/strong>, and other employee benefits.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Examples include:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Up to a\u00a0<strong>50% credit<\/strong>\u00a0(up from 25%) for employer-provided childcare.<\/li>\n\n\n\n<li>Extended and enhanced credits for paid family and medical leave.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Why it matters:<\/strong><br>These incentives reduce your overall tax burden&nbsp;<em>and<\/em>&nbsp;improve employee retention \u2014 a valuable combination in today\u2019s tight labor market.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Final Thoughts<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The&nbsp;<strong>One Big Beautiful Tax Legislation<\/strong>&nbsp;gives small business owners more flexibility and long-term certainty than we\u2019ve seen in years. But with opportunity comes complexity \u2014 and that\u2019s where proactive planning pays off.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">By coordinating your&nbsp;<strong>entity structure, capital investments, employee benefits, and income timing<\/strong>, you can reduce taxes today and position your business for future growth.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Smart tax strategy isn\u2019t just about compliance \u2014 it\u2019s about capturing every dollar the law allows. And under this \u201cbeautiful\u201d new tax law, there\u2019s plenty to capture.&nbsp; Call us at (336)899-7660 to schedule a consultation.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The recently passed&nbsp;One Big Beautiful Bill (OBBB)&nbsp;\u2014 often called the&nbsp;One Big Beautiful Tax Act&nbsp;\u2014 introduced some of the most significant tax changes in years. For small business owners and self-employed professionals, these updates open new opportunities to save money, invest in growth, and plan smarter. Here are&nbsp;five \u201cbeautiful\u201d tax reduction strategies&nbsp;to help you make the most of the new law. 1. Maximize the 20% Pass-Through Deduction (QBI) The One Big&#8230; <a class=\"more-link\" href=\"https:\/\/deaconcpa.com\/blog\/2025\/10\/07\/5-beautiful-tax-reduction-strategies-under-the-one-big-beautiful-tax-legislation\/\">Read More<a><\/p>\n","protected":false},"author":1,"featured_media":82,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[3],"tags":[],"class_list":["post-81","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business-tax","entry"],"_links":{"self":[{"href":"https:\/\/deaconcpa.com\/blog\/wp-json\/wp\/v2\/posts\/81","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/deaconcpa.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/deaconcpa.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/deaconcpa.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/deaconcpa.com\/blog\/wp-json\/wp\/v2\/comments?post=81"}],"version-history":[{"count":1,"href":"https:\/\/deaconcpa.com\/blog\/wp-json\/wp\/v2\/posts\/81\/revisions"}],"predecessor-version":[{"id":83,"href":"https:\/\/deaconcpa.com\/blog\/wp-json\/wp\/v2\/posts\/81\/revisions\/83"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/deaconcpa.com\/blog\/wp-json\/wp\/v2\/media\/82"}],"wp:attachment":[{"href":"https:\/\/deaconcpa.com\/blog\/wp-json\/wp\/v2\/media?parent=81"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/deaconcpa.com\/blog\/wp-json\/wp\/v2\/categories?post=81"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/deaconcpa.com\/blog\/wp-json\/wp\/v2\/tags?post=81"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}