The One Big Beautiful Bill: What Small Business Owners Need to Know

Stay informed about the One Big Beautiful Bill (HR1) and its evolving tax provisions, as changes are likely before final enactment.

Be aware of potential increases in income tax brackets if the new bill doesn't pass, and note that both House and Senate versions aim to keep current brackets.

Understand the proposed standard deduction changes, especially for seniors and married couples, as they could simplify tax filing and offer larger deductions.

Evaluate the impact of child tax credit adjustments on your family's finances, recognizing the House and Senate offer slightly different permanent and temporary increases.

For employers, prepare for potential administrative changes if 'no tax on tips' or 'no tax on overtime' provisions pass, as payroll systems may need updates to separately state wages.

Utilize current pass-through entity tax strategies if you are an S corp owner, as these can help mitigate the state and local tax (SALT) cap.

Consider strategic equipment purchases in 2025 if 100% bonus depreciation is reinstated retroactively, as this can lead to significant first-year deductions.

For self-employed individuals, recognize the critical importance of the Qualified Business Income (QBI) deduction, as its expiration would mean a significant tax increase.