BIG Changes Ahead: What The "Big Beautiful Bill" Means for 2025 Taxes

Love it or hate it, Congress has just pushed a massive budget‑reconciliation package over the finish line on a 51‑50 vote. Nicknamed the “One Big, Beautiful Bill,” it locks in the 2017 tax cuts, adds fresh incentives for growth, and sprinkles in a few guardrails for high‑earners. Every taxpayer—C‑corps, S‑corps, partnerships, sole proprietors, and individuals—will feel the impact.

At Beaconshire Advisory, we’ve already mapped the planning opportunities and compliance checkpoints. Below is the executive‑summary version; watch this space for deeper dives by entity type over the coming days.

Theme	Why It Matters
Permanent Rate Relief	The 12 % / 22 % / 24 % brackets are now permanent; the top rate stays 37 %.
Standard Deduction Super‑Sized	2017’s near‑doubling is locked in plus a 2025‑2028 bonus bump ($2k joint / $1k single).
Family Boosts	Child Tax Credit stays $2,000, rises to $2,500 (2025‑28) and will index thereafter; adoption credit becomes partly refundable.
Overtime & Tips = Tax‑Free	Above‑the‑line deduction wipes out tax on qualified tips and OT premiums (2025‑28) for most middle‑income workers.
Senior Extra Deduction	65+ filers get an added $4k each ($8k joint) through 2028, phasing out after $75k/$150k AGI.
Made‑in‑USA Car‑Loan Interest	Deduct up to $10k of interest on loans for U.S.-built vehicles (2025‑28, phased out for high earners).
“MAGA” Kids’ Accounts	New $5k‑per‑year post‑tax savings vehicle for children under 8; federal $1k seed for 2024‑28 births.

Business Highlights

• Pass‑Through Deduction ➜ 23 % & Permanent

  Section 199A sticks around—bigger and with smoother phase‑outs.

• 100 % Bonus Depreciation Returns (2025‑29)

  Buy equipment, write it off immediately—cash‑flow win.

• Section 179 Doubled

  Expense up to $2.5 M; phase‑out now begins at $4 M (indexed).

• R&D Costs Fully Deductible Again

  No more 5‑year amortization headache for domestic research.

• Interest Deduction Loosened

  Limit reverts to 30 % of EBITDA through 2029.

• Factory & Construction Expensing

  New “qualified production property” gets 100 % write‑off for U.S. plants started 2025‑30.

• Opportunity Zones 2.0

  Extended, better targeted to rural areas, and now accept up to $10k of ordinary income annually.

• Form 1099 Relief

  1099‑K threshold back to $20k/200 transactions; standard 1099 threshold rises to $2,000 (indexed).

The Fine Print & Trade‑Offs

• SALT Cap Adjusted, Not Gone

  Raised to $30k joint but phases back to $10k for very high earners—and workaround abuse is curtailed.

• Excess‑Business‑Loss Limit Made Permanent

  Large losses (> ~$520k joint) still carry forward, keeping high‑income shelters in check.

• Corporate Deductions Tweaked

  Executive‑pay $1 M cap tightened; first 1 % of C‑corp charity now non‑deductible.

• Clean‑Energy Credits Sunset

  EV, solar, and efficiency credits begin wind‑down after 2024.

What Happens Next?

Over the coming week we’ll post short, sector‑specific guides covering:

1. S‑Corporations & Partnerships – capital‑intensive planning, 199A modeling, and SALT workarounds.

2. C‑Corporations – bonus‑depreciation scheduling, executive‑compensation caps, and corporate philanthropy.

3. Sole Proprietors & Gig Workers – 1099 relief, tip/OT deductions, and car‑loan interest angles.

4. Individual Investors & Families – SALT‑cap strategies, MAGA Accounts, and phasing of family credits

The Beaconshire Promise

Major legislation is exhilarating—and perilous—because missed provisions become missed dollars. Beaconshire Advisory is already updating tax‑projection models, entity agreements, and payroll systems so our clients stay compliant and capture every opportunity embedded in this bill.

If you’re unsure how the “One Big, Beautiful Bill” reshapes your 2025 roadmap, let’s talk. Until then, follow Beaconshire for the forthcoming break‑outs and practical checklists.

— Beaconshire Advisory | Strategy • Compliance • Confidence