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Posted July 16, 2025
Tax Update : What BNA CPAs Want You to Know About the “Big Beautiful Bill”
The recently passed “One Big Beautiful Bill” marks a significant update to the U.S. tax code—building on the 2017 Trump tax cuts and introducing new opportunities for individuals, families, and business owners alike.
At BNA CPA & Advisors, we’ve been reviewing the bill closely to understand its full impact. Below, Jason Ackerman, CPA, CFP®, CGMA, shares some of the most important takeaways—and where smart tax planning can make a difference.
Permanence That Matters
The bill’s primary goal was to make the 2017 Trump tax cuts permanent—and in most areas, it succeeds. That means there’s no looming sunset for many of the major provisions, making it easier for advisors and taxpayers to plan beyond the typical 8–10 year window.
This will make it harder to change these laws in the future, Jason says, but it also gives planners the ability to plan around them with a longer-term horizon. Of course, laws can always change—but permanent ones are much more difficult to undo.
A few provisions, that are not permanent include:
- No tax on tips
- No tax on overtime pay
- Enhanced senior deductions
- No tax on car loan interest
These items—many of which were campaign promises—are set to expire at the end of Trump’s term and may not be renewed. Additionally, while the bill introduces several taxpayer-friendly provisions, many may be subject to income limits or phaseouts.
Let’s Look at Key Tax Updates
No Tax on Overtime: Planning Opportunity
Overtime wages are now exempt from federal income tax—at least temporarily.
For S-Corp owners or employees with flexible pay structures,” Jason explains, “this could provide a planning opportunity to shift income into overtime. reduce overall tax exposure. We will have to wait on regulations for this but this is one to watch.
Expanded 529 Plan Uses
The bill significantly expands what qualifies as an eligible expense for 529 education savings plans, including:
- Homeschool expenses
- Exam/credentialing fees (CPA, CFP, Bar, etc.)
- Therapies for children with disabilities
This opens up new tax-saving strategies—especially in states like South Carolina, where contributions are deductible. You could, for example, contribute to a 529, take a state tax deduction, and then withdraw the funds almost immediately to pay for qualified expenses.
“Trump Accounts” for Children
Every child born between 2024 and 2028 will receive a $1,000 federal contribution into a new “Trump Account.” While the details are still developing, this could become a significant financial planning tool for young families.
SALT Deduction Cap Raised
The State and Local Tax (SALT) deduction limit is now $40,000 for individuals, phasing out at $500,000 of income for joint filers.
This is a big win for clients in high-tax states,” Jason says. “But for those hovering near the phase-out threshold, we may be able to find creative ways to keep the deduction intact.
More Key Highlights
Employee Retention Credit: Enhanced enforcement for fraudulent claims—Congress is now cracking down.
1099 Reporting Threshold: Raised from $600 to $2,000, indexed for inflation. This reduces the burden on businesses and makes CPAs happy by simplifying compliance.
R&D Expenses: Businesses can now immediately expense domestic R&D costs—and even amend prior returns to reclaim deductions.
This creates a huge planning window for small businesses—we’ll help clients decide whether to expense now, amend, or spread deductions over time.
Accelerated Depreciation: The bill brings back 100% bonus depreciation and boosts Section 179 limits, allowing small businesses to write off most purchases in year one.
Qualified Small Business Stock (Section 1202): The capital gain exclusion limit jumps to $15M, and now allows tiered exclusions (50% at 3 years, 75% at 4, and 100% at 5).
Some clients might now benefit from C-Corp conversions if they plan to sell in 3–5 years.
Expanded Tip Credit: Now includes the beauty industry—a win for employers in salons and spas.
Opportunity Zones: The program has been extended through 2028, offering ongoing ways to defer capital gains by investing in designated development zones.
Planning is More Powerful Than Ever
This bill gives us more tools—and more certainty—to build around. But with so many moving parts, personalized planning is essential.
If you’re wondering how these changes may affect your 2025 return, business strategy, or long-term financial goals, we’re here to help.
Contact BNA Today
If you’re looking for reliable financial guidance, we’re just a call away. Reach out to us at (803) 366-8371 or email us at success@bna.com to see how we can support your goals.
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