Final Big Beautiful Bill Tax Law Summary Trump Signs into Law

00:03:49
https://www.youtube.com/watch?v=NpNr2rx51N0

Resumo

TLDRThis video discusses the new tax laws that will affect small business owners and individuals. Key highlights include the continuation of the QBI deduction at 20%, no tax on tips up to $25,000, and an additional $6,000 deduction for seniors. Car loan interest can now be deducted up to $10,000 for American vehicles. The SALT deduction limit has increased to $40,000. 100% bonus depreciation is available for qualifying assets until January 19, 2025, and the green clean vehicle tax credit will expire on January 1, 2025. Other tax elements like the child credit and mortgage interest deduction remain with slight adjustments. Viewers are encouraged to consult their tax professionals for personalized advice.

Conclusões

  • 💼 QBI deduction remains at 20% for small businesses.
  • 💰 No tax on tips up to $25,000 for certain industries.
  • 👴 Additional $6,000 deduction for seniors.
  • 🚗 Car loan interest deduction up to $10,000 for American vehicles.
  • 🏡 SALT deduction limit increased to $40,000.
  • 📉 100% bonus depreciation available until January 19, 2025.
  • 🌱 Green clean vehicle tax credit expires on January 1, 2025.
  • 👶 Slight increase in child credit.
  • 🏠 Mortgage interest deduction limited to $750,000.
  • 🗓️ Consult with a tax professional for planning.

Linha do tempo

  • 00:00:00 - 00:03:49

    The video discusses new tax laws, particularly highlighting the QBI deduction for small business owners, which remains at 20%. It mentions that there are exceptions and phase-outs for this deduction. Additionally, there is no tax on tips up to $25,000 and no tax on overtime up to $12,500. Seniors can benefit from an additional $6,000 deduction, and car loan interest on American vehicles can be deducted up to $10,000. The SALT deduction has been limited to $40,000, and there are updates on bonus depreciation and section 179 depreciation limits. The green clean vehicle tax credit will expire on January 1, 2025. Other tax elements like the standard deduction and child credit have slight changes, but many remain unchanged. The speaker encourages viewers to plan with their tax professionals and stay informed about these changes.

Mapa mental

Vídeo de perguntas e respostas

  • What is the QBI deduction?

    The QBI deduction allows small business owners to deduct 20% of their net income.

  • Is there a tax on tips?

    No tax on tips up to $25,000 for defined industries.

  • What is the additional senior deduction?

    An additional $6,000 deduction for seniors.

  • What is the limit for car loan interest deduction?

    Up to $10,000 for American vehicles.

  • What is the SALT deduction limit?

    Limited to $40,000 for state and local taxes.

  • What is 100% bonus depreciation?

    Allows for 100% deduction of qualifying assets until January 19, 2025.

  • What is the green clean vehicle tax credit?

    A $7,500 credit that expires on January 1, 2025.

  • Are there changes to the child credit?

    There is a slight increase in the child credit.

  • What is the limit for mortgage interest deduction?

    Limited to $750,000.

  • What should I do to take advantage of these tax changes?

    Consult with your tax professional for planning.

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Legendas
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Rolagem automática:
  • 00:00:00
    We got new tax laws going into play.
  • 00:00:02
    Here's the major ones affecting most and
  • 00:00:05
    a few that we don't see any changes. At
  • 00:00:08
    the end, I'm going to give you a link
  • 00:00:09
    where you can see a full summary related
  • 00:00:12
    to this. So, JJ the CPA here, hope
  • 00:00:15
    you're doing well. Here's the big one,
  • 00:00:18
    at least for small business owners, is
  • 00:00:20
    that the QBI deduction remains at 20%
  • 00:00:24
    and in effect after this year. You may
  • 00:00:27
    not be aware of this, but this is a
  • 00:00:29
    beautiful out of thin air tax deduction.
  • 00:00:33
    Meaning the net income of your business
  • 00:00:35
    times 20%
  • 00:00:37
    is a deduction out of thin air and it
  • 00:00:39
    continues. With that being said, of
  • 00:00:41
    course, there's always exceptions to
  • 00:00:43
    that and phase outs. Also, no tax on
  • 00:00:46
    tips, but where this is landing is that
  • 00:00:49
    it'll be up to $25,000 of tips. And they
  • 00:00:53
    did define which industries will be able
  • 00:00:55
    to benefit from this. And of course,
  • 00:00:57
    there are phase out. No tax on overtime
  • 00:01:00
    up to $12,500.
  • 00:01:02
    The same any tax law is going to have
  • 00:01:04
    exceptions and phase outs. Additional
  • 00:01:07
    senior deduction. You know, I'm about
  • 00:01:08
    getting there myself. But an additional
  • 00:01:11
    $6,000 deduction for seniors. Car loan
  • 00:01:15
    interest. What? Now, this is going to be
  • 00:01:18
    a deduction. It'll be up to $10,000 and
  • 00:01:21
    it'll be on American vehicles. The salt,
  • 00:01:24
    what is salt? State and local taxes.
  • 00:01:27
    What's that? Real estate taxes, state
  • 00:01:29
    taxes, income taxes. At the state level,
  • 00:01:33
    it's been limited to 10,000. They've
  • 00:01:35
    landed at 40,000. Now, for states that
  • 00:01:38
    have the pass through entity tax play,
  • 00:01:42
    if you will, well, the House said nope,
  • 00:01:44
    but the Senate said yes. And what's
  • 00:01:47
    going into play is yes, it will be
  • 00:01:49
    allowed that workaround. 100% bonus
  • 00:01:52
    depreciation. Check this one out. Now
  • 00:01:55
    it's back to January 19th of 25. 100%
  • 00:01:59
    bonus depreciation means that for the
  • 00:02:01
    qualifying assets in your business, bam,
  • 00:02:04
    100% deductible if it makes sense for
  • 00:02:07
    you. Also, in depreciation world,
  • 00:02:09
    section 179, that depreciation is
  • 00:02:13
    allowed 100%. Now, it does get limited
  • 00:02:15
    to your income. There's some exceptions
  • 00:02:18
    to all that. You know that, right? But
  • 00:02:20
    anyways, up to $2,500,000.
  • 00:02:23
    The green clean vehicle tax credit.
  • 00:02:28
    Don't know that you're going to see this
  • 00:02:29
    as a positive, but it expires on 101 of
  • 00:02:34
    25. Meaning from 10125 and after, if you
  • 00:02:37
    purchase it, but uh uh from that date
  • 00:02:40
    and after, you're not going to be able
  • 00:02:41
    to get that credit. That's that $7,500
  • 00:02:43
    credit. No changes, little changes. Tax
  • 00:02:47
    rate, standard deduction, other
  • 00:02:49
    dependent credit, the earned income tax
  • 00:02:52
    credit, the estate and gift uh uh
  • 00:02:56
    exemption, the mortgage interest, uh is
  • 00:02:58
    going to be limited still to the
  • 00:03:00
    750,000.
  • 00:03:02
    And when we're talking about the child
  • 00:03:03
    credit, uh slight increase for that as
  • 00:03:06
    well. So, as promised in the body of
  • 00:03:08
    this video, you'll find a link to a
  • 00:03:11
    summary going through this. Check out
  • 00:03:13
    other videos related to this as well as
  • 00:03:15
    my seminars. And here we are basically
  • 00:03:18
    now able to plan, get with your tax
  • 00:03:21
    professional. Stay tuned on how you can
  • 00:03:24
    take advantage of these things. And a
  • 00:03:26
    big part of all this is that we're going
  • 00:03:28
    to get this continued relief that we've
  • 00:03:31
    all gotten used to in the law that came
  • 00:03:34
    into play in 2018. as we move forward.
  • 00:03:38
    All right. Hey, thanks for tuning in.
  • 00:03:40
    I'd love it if you'd subscribe. And then
  • 00:03:42
    don't you ever forget, you've never met
  • 00:03:45
    a CPA quite like me. You have a great
  • 00:03:48
    one.
Etiquetas
  • tax laws
  • QBI deduction
  • small business
  • deductions
  • credits
  • tax planning
  • SALT deduction
  • bonus depreciation
  • green vehicle credit
  • senior deduction