SNAP Accounting LLC

RESOURCES & USEFUL INFORMATION

Below, you will find some useful information for you and your business.

One Big Beautiful Bill Act (Summary of new tax law changes)

One Big Beautiful Bill Act - some key changes that will impact the 2025 tax year and forward for most tax payers

💰 Current tax rates & tax brackets established with TCJA in 2017 are made permanent (10%, 12%, 22%, 24%, 32%, 35%, and 37%)

💰Standard Deduction amounts are permanently increased for 2025 and will be adjusted for inflation going forward. 2025 amounts are $15,750 for singles and $31,500 for MFJ.

💰SALT Deduction Cap is temporarily increased from $10,000 to $40,000 for years 2025-2029.

💰Deductions for Tips and Overtime Pay are available as a temporary deduction for qualified tip income & qualified overtime pay for tax years 2025-2028. Taxpayers still have to pay Social Security and Medicare tax.

💰Senior deduction of $6,000 is available for tax payers aged 65 or older for tax years 2025-2028.

💰The federal Estate, Gift and Generation-Skipping Transfer Tax exemptions are increased to $15 million per person ($30 million for married couples), plus inflation adjustments.

💰Child Tax Credit is also permanently increased to $2,200 per qualifying child starting 2025.

💰A new temporary car loan interest deduction up to $10,000 for vehicles if the final assembly occured in the United States.

💰Donations beginning in 2026, taxpayers who do not itemize deductions are allowed a charitable contribution deduction of up to $1,000 ($2,000 for MFJ)

💰Trump Accounts are available with a one time government deposit of $1,000 for qualifying children born between December 31, 2024 and January 1, 2029

💰100% Bonus Depreciation for certain qualified property acquired after January 19th, 2025 is permanently restored. The bill also permanently restores immediate expensing of domestic research or experimental expenditures from 2025.

💰Section 179 annual expense limit is increased to $2.5 million, reduced by expenditures for section 179 property that exceed $4 million.

💰Miscellaneous Itemized Deductions and Personal Exemptions are permanently eliminated.

💰The FICA tip credit for employers is now expanded to include those in the beauty services in addition to food & beverage industries.

💰Permanently extends Opportunity Zone tax benefits. Qualified Opportunity Zones will now be redesignated every 10 years beginning in 2026. Deferred gain on investments made after January 1, 2027, will be recognized on the earlier of five years or disposition of the investment. A 10% basis increase is allowed if held for five years. No tax is imposed on investment gains if the qualified investment is held for at least 10 years and up to 30 years.