Big Bill, Real People: What the New Tax Law Means for You (Plain & Practical)
- Karolyn & Bryan LaLonde
- Jul 12
- 4 min read
The One Big Beautiful Bill, signed July 4, 2025, is packed with changes to how taxes work for individuals and businesses. We’re here to make it simple.
Keep reading for real talk on:
What changed
How it might help (or not)
Which businesses it applies to
One thing you can do right now
1. 20% Business Income Deduction (QBI)
What changed:
The 20% deduction for pass-through businesses is now permanent.
Applies to:
Sole proprietors, partnerships, LLCs taxed as partnerships, and S-corps.
Pros:
Annual tax savings you can count on
More stability for planning
Cons and Limits:
Phases out above $197,300 (or $394,600 for joint filers)
Some service businesses have to pass a wage or property test
Not available for C-corps
What to do:
Check if you’re close to the income threshold. Talk with your advisor about strategies that keep your deduction intact.
2. Bigger Write-Offs (Section 179 and Bonus Depreciation)
What changed:
The Section 179 limit doubled to $2.5 million. Bonus depreciation at 100 percent is also here to stay.
Applies to:
All business types making qualifying equipment purchases.
Pros:
Big upfront tax savings when you buy equipment or tech
Keeps more cash in your business now
Cons and Limits:
Only applies to qualifying items
May not make sense if your income is low this year
What to do:
If you’re planning upgrades, talk to your bookkeeper to see if it makes sense to buy before year-end.
3. Stock Gains Relief (QSBS)
What changed:
Qualified Small Business Stock (QSBS) rules now apply to companies with up to $75 million in assets. There are tiered tax breaks in the new tax bill: 50 percent after 3 years, 75 percent after 4, and 100 percent after 5.
Applies to:
Owners and early investors in C-corps.
Pros:
Reduced or zero federal tax on stock gains
Encourages holding equity longer
Cons and Limits:
Only applies to C-corps
Complex rules and timing required
Gains must meet holding and cap requirements
What to do:
If you’re growing a business with the intention to sell, or issuing shares, bring this up with your tax team early.
4. Tip and Overtime Deduction (Through 2028)
What changed:
Employees can deduct up to $25,000 in tips and $12,500 in overtime pay. This lasts through 2028.
Applies to:
Workers earning tips or overtime, especially in service industries.
Pros:
Boosts take-home pay for employees
May help with hiring and retention
Cons and Limits:
Applies to cash tips only
Phases out for higher earners ($150,000 single or $300,000 joint)
Set to expire at the end of 2028
What to do:
Help your staff understand how to track tips properly and share updates in team meetings or onboarding.
Pros and Cons Snapshot
Provision | Applies to | Pro | Con or Limit |
QBI Deduction | LLC, S-Corp, Sole Prop | Permanent 20% | Phases out at higher income levels |
Section 179 / Bonus | All business types | Big first-year write-offs | Must be qualifying purchases |
QSBS Exemption | C-Corp stockholders | Up to 100% tax-free gain | Only for C-corps, must meet asset and time rules |
Tip and OT Deduction | Tipped/OT workers | Lower tax for staff | Cash tips only, ends 2028 |
Two Smart Actions You Can Take
Review your income level to see if the QBI deduction applies in full or in part.
If you’re planning any major purchases for your business, consider doing it before year-end to take advantage of the larger write-offs.
Stillwater Perspective
This bill offers benefits, but they’re not one-size-fits-all. The right moves depend on your business type, income, and goals. We’re here to help you cut through the noise, clarify what matters for your business, and build plans that make sense.
A Strong Tax Partner Makes All the Difference
This upcoming tax season is a great time to bring in a tax professional who understands the shifting landscape. Working with an Enrolled Agent (EA) or a virtual CFO (vCFO) means you don’t have to guess or go it alone. You want someone in your corner—someone who knows how to translate complex tax changes into smart business decisions. The SBS Way is walking with you through every phase of growth, offering strategy, clarity, and steady support.
Want the Whole Picture?
The Big Beautiful Bill offers new tax tools—but it leaves some important areas untouched. 📬
Get Part 2 delivered to your inbox and learn how to handle:
Payroll support gaps
Health insurance workarounds
Start-up stage blind spots
Lending + credit planning
Compliance stress for solo owners
Article Resources
📜 General Overviews of the Bill
Investopedia: 7 Things Taxpayers Need to Know About the Big Beautiful Bill
MoneyWeek: What Does Trump’s ‘Big Beautiful Bill’ Mean for the US Economy?
💸 QBI Deduction
Williams Mullen: Legal Overview of Small Business Tax Impacts
Buchanan Ingersoll & Rooney: Legislative Summary of QBI and Expensing
🧾 Section 179 + Bonus Depreciation
📈 QSBS (Qualified Small Business Stock)
💵 Tip & Overtime Deductions
Stillwater Business Solutions is run by Karolyn and Bryan, a tech-savvy and community-focused team who believe bookkeeping should feel collaborative and empowering—not confusing. Whether you're looking to simplify your systems or get support you can trust, we're here when you're ready. No pressure. Just people-first accounting that fits your business.
Comments