by Isabella Gonzalez | Nov 17, 2025
The One Big Beautiful Bill (OBBBA), passed for 2025, brought several important changes for businesses. If you own a business or are planning investments, it’s worth understanding what these updates mean for taxes, deductions, and planning strategies. Here’s a breakdown in plain English.
1. Continued Qualified Business Income (QBI) Deduction
The 20% deduction for Qualified Business Income (QBI) is here to stay. This deduction allows owners of pass-through businesses—like sole proprietorships, partnerships, S-corporations, and some LLCs to deduct up to 20% of their qualified business income from federal taxes. It’s a major incentive for small and medium-sized business owners, helping reduce taxable income and improve cash flow.
2. Immediate Deduction for Research & Experimental Expenditures
OBBBA restores the ability to fully deduct research or experimental expenses in the year they are incurred. Previously, businesses often had to capitalize these costs and depreciate them over time, which delayed tax benefits. Now, qualifying R&D expenses can be deducted immediately, making innovation more financially attractive for companies investing in new products or processes.
3. Permanent 100% Bonus Depreciation
One of the biggest changes is that 100% bonus depreciation is now permanent for qualifying property acquired and placed in service. This means businesses can immediately deduct the full cost of eligible assets (like equipment, machinery, or furniture) in the year they start using them. This accelerates tax savings and helps businesses reinvest cash into operations or expansion.
4. Renewal and Adjustment of Qualified Opportunity Zones
The bill renews the Qualified Opportunity Zone (QOZ) program but updates the eligibility rules. Businesses investing in designated opportunity zones can still defer or reduce capital gains taxes if they reinvest profits in these areas, but they need to be aware of the adjusted requirements to maximize benefits.
5. Permanent Limitations on Excess Business Losses
OBBBA makes the limitations on excess business losses indefinite. Previously, some losses above a certain threshold could offset other income in a given year, but limits were temporary. Now, businesses will continue to face restrictions on how much loss can be used to offset non-business income, ensuring that large losses don’t create disproportionate tax advantages.
What This Means for Your Business
The 2025 tax changes under OBBBA offer several opportunities to reduce taxable income, invest strategically, and improve cash flow. Remember this:
- If you own a pass-through business, the QBI deduction remains a valuable benefit.
- Innovation is encouraged with immediate R&D deductions.
- Buying qualifying property? 100% bonus depreciation means you can write off the cost right away.
- Opportunity Zone investments are still advantageous but require careful planning.
- Track your business losses carefully, as limitations are now permanent.
Set Up Your Business’s Finances With a Pro
Working with a CPA or tax advisor is more important than ever to make sure your business leverages these rules effectively while staying compliant. Proper planning can maximize deductions and position your company for growth in 2025 and beyond.
But not all CPAs are created equal. Here at 13 Consulting, we go above and beyond for every single client, every single time. No matter the business size, we’re prepared to treat your business like our own. Maximizing deductions and planning strategically.
Ready to get your business’s finances set up the right way? Schedule a call with 13 Consulting for expert advice.
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by Isabella Gonzalez | Nov 10, 2025
One Big Beautiful Bill Act (OBBBA, OBBB, or BBB)
Some amendments make the Tax Cuts and Jobs Act of 2017 (TCJA) provisions permanent or extended. If not specifically mentioned, the deduction rates are for single filers.
Individual Taxpayers
- The tax brackets of 10%, 12%, 22%, 24%, 32%, 35%, and 37% remain permanent from the TCJA.
- Increased standard deduction to: single or married filing separately – $15,750; head of household – $23,625; married filing jointly or surviving spouses – $31,500.
- Up to $25,000 of tip income is deductible, and a maximum annual deduction of $12,500 on overtime, with a phaseout at $150,000 in MAGI (2025-2028).
- Any personal use vehicle that undergoes final assembly in the United States has a maximum annual deduction of $10,000 in car loan interest.
- 65 and older individuals get an additional deduction of $6,000 each, with a phaseout of $75,000 in MAGI.
- Increases the state and local taxes (SALT) deduction to $40,000 from the original $10,000.
- Permanently eliminates miscellaneous itemized deductions.
- The lifetime estate and gift tax exemption has increased to $15 million per individual.
- Itemized deductions for personal casualty losses resulting from state & federal declared disasters are in effect.
- Mortgage interest deduction cap remains at $750,000 of acquisition debt.
- Child Tax Credit increased from $2,000 to $2,200 per child, phase out thresholds are $400,000 for joint filers.
- 529 plans get more flexible with up to $20,000 to pay for K-12 expenses (up from previous $10,000):
- Also includes books, online learning materials, tutoring, standardized tests, college exams, etc.
- Adoption Tax Credit is refundable up to $5,000.
- Trump Child Savings Accounts are created with a contribution limit of $5,000 per tax year (2026-2028):
- The government will make a one-time $1,000 contribution per child to a U.S. citizen.
- The Alternative Minimum Tax (AMT) exemption amount is $88,100:
- The AMT ensures higher-income taxpayers pay at least a minimum tax.
Get Expert Financial Advice from a CPA
Stay tuned as we continue to monitor legislative developments and their potential impact on your financial planning. Ready to get your business’s finances set up the right way? Schedule a call with 13 Consulting for expert advice.
by Isabella Gonzalez | Jan 9, 2025
Updated: January 8th, 2025
As of January 8th, 2025: BOI reporting is voluntary.
Explore the developments leading to this status:
- January 1, 2024: The Corporate Transparency Act went into effect, requiring businesses formed before this date to file Beneficial Ownership Information (BOI) reports by January 1, 2025. Newly formed businesses in 2024 were given 90 days to file, with this period shrinking to 30 days in 2025.
- December 3, 2024: A federal district court in Texas issued a nationwide injunction, temporarily blocking the BOI reporting requirement, just weeks before the January 1, 2025, deadline. Read more about this update.
- December 23, 2024: A Fifth Circuit motions panel granted the government’s request to stay the injunction, reinstating the BOI reporting requirement. FinCEN extended the filing deadline by two weeks.
- December 26, 2024: A different Fifth Circuit panel reversed the December 23 decision, reinstating the nationwide injunction and halting the BOI reporting requirement once again.
by Isabella Gonzalez | Jan 9, 2025
Starting in 2025, businesses in Pennsylvania will need to file an annual report, replacing the previous decennial report requirement. This new filing applies to various domestic and foreign business entities, including corporations, LLCs, and partnerships.
Key Points of the Annual Report:
- Must include details such as the business name, registered office address, principal officers, and more.
- Fees vary by entity type, with a $7 fee for most for-profit entities and no fee for nonprofits.
- Filing deadlines differ by entity type: June 30 for corporations, September 30 for LLCs, and December 31 for other entities.
The Pennsylvania Department of State will send reminders before each deadline, but it’s crucial for businesses to keep their information updated to ensure they receive these notices.
by Isabella Gonzalez | Dec 12, 2024
On December 3rd, a federal district court in Texas temporarily blocked the enforcement of beneficial ownership reporting (BOI) requirements under the Corporate Transparency Act (CTA).
The court ruled that the CTA overstepped congressional authority by infringing on states’ rights to regulate businesses, deeming the reporting mandate unconstitutional. As a result, the Financial Crimes Enforcement Network (FinCEN) cannot enforce the January 1, 2025, BOI reporting deadline for businesses across the U.S.
While an appeal is expected, businesses are currently not required to file BOI reports with FinCEN.
Note: Find the latest news on BOI reporting in this article.
