Congress just rewrote the playbook for businesses and investors with the Big Beautiful Bill—a massive tax overhaul with lasting effects. From 100% bonus depreciation to new savings accounts for kids, these changes could reshape how you plan, invest, and grow in 2025 and beyond.
Business & Broader Tax Changes in the Big Beautiful Bill (Part 2)
What Business Owners, Investors, and Everyday Taxpayers Need to Know
In July 2025, Congress passed the Big Beautiful Bill, a sweeping overhaul of the U.S. tax code. While Part 1 focused on individual tax changes, Part 2 dives into key provisions impacting business owners, investors, and broader tax strategies.
From bonus depreciation returning to 100% to new savings accounts for children, these updates are packed with planning opportunities—and potential pitfalls if you’re not proactive.
Key Updates for Business Owners and Investors
1. Bonus Depreciation Is Back at 100%
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100% bonus depreciation is reinstated and made permanent for qualified property acquired after January 19, 2025.
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Property purchased under contract before January 19 but closed afterward is treated as ineligible for 100% and qualifies only for 40% bonus depreciation (if acquired between Jan 1–Jan 19, 2025).
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Critical for real estate investors and capital-intensive businesses—timing of acquisition is key.
2. Section 179 Deduction Limit Raised
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The Section 179 cap increases from $2.5M → $4M.
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Applies to tangible personal property (typically Section 1245 property).
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Great for small businesses acquiring equipment, machinery, or software.
3. Research and Development (R&D) Costs
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Domestic R&D can now be expensed immediately, starting in 2025.
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Foreign R&D still must be amortized over 15 years.
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An optional election is available to amortize domestic R&D over 60 months, but only for certain taxpayers.
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This heavily impacts tech companies, software developers, and innovation-driven firms.
4. Qualified Small Business Stock (QSBS)
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New graduated exclusion schedule for C-corp stock:
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50% exclusion if held 3 years
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75% after 4 years
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100% after 5 years
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Applies only to stock acquired after July 4, 2025.
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The $10M capital gain exclusion limit increases to $15M, starting in 2027.
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Highly beneficial for startups and venture investors planning early exits.
5. 1099K Reporting Thresholds Rolled Back
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Thresholds revert to $20,000 and 200 transactions/year—undoing the lower thresholds that caused compliance issues for many small platforms and freelancers.
6. Employer Student Loan Payment Exclusion
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Made permanent starting in 2026.
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Employers can contribute up to $5,250 annually tax-free toward employee student loans.
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This exclusion is already available—but becomes permanently codified in 2026.
What These Changes Mean for You
The Big Beautiful Bill introduces both short-term opportunities and long-term planning considerations for business owners, investors, and taxpayers. Whether it’s utilizing 100% bonus depreciation, strategizing R&D deductions, or capitalizing on new QSBS rules, timing and compliance are critical.
If you’re a business owner or investor, this is the year to revisit your strategy—especially if you plan to acquire assets, support charitable causes, or gift stock to future generations.
Final Thoughts
The tax landscape is shifting dramatically. These changes aren’t just numbers on paper—they could influence how you invest, hire, save, and give.
At Thompson Tax Group, we help real estate investors, entrepreneurs, and high-income earners stay ahead of evolving tax rules. Let’s make sure you’re not just compliant—you’re capitalizing.
Book a planning call today and get ready for 2026 and beyond.
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