The newly enacted One Big Beautiful Tax Act has introduced sweeping tax changes for individuals and business owners across the country. While the headlines focus on the size and scope of this legislation, the real opportunity lies in understanding how to use these new rules to your advantage.
Here are three smart tax strategies to help you lower your taxes and make the most of the new law.
1. Maximize the 20% Pass-Through Deduction (QBI)
One of the most impactful parts of the One Big Beautiful Tax Act is the permanent extension of the 20% Qualified Business Income (QBI) deduction for owners of pass-through entities such as S corporations, LLCs, partnerships, and sole proprietorships.
This deduction allows eligible business owners to exclude up to 20% of qualified business income from taxation, effectively lowering your top marginal rate.
What you can do:
- Make sure your business structure qualifies for the deduction.
- Keep taxable income within the phaseout range for specified service trades (like accounting, consulting, or legal services).
- Use strategic planning tools — such as retirement contributions, depreciation, or charitable giving — to manage your income level and stay eligible.
Why it matters:
This deduction is one of the most valuable tax breaks available to entrepreneurs and professionals. With careful planning, you can preserve it year after year.
2. Take Advantage of 100% Bonus Depreciation and Expanded Section 179
The new tax law restores 100% bonus depreciation and increases Section 179 expensing limits to $2.5 million. These provisions allow business owners to deduct the full cost of qualifying property and equipment in the year it’s purchased and placed in service — instead of spreading the deduction over several years.
Example:
If your business invests $100,000 in new equipment or technology before December 31, you may be able to deduct the entire amount this year.
Why it matters:
This creates a direct, immediate reduction in taxable income — freeing up cash flow for reinvestment, debt reduction, or growth.
Smart move:
Time large purchases strategically near year-end to maximize deductions while ensuring the assets are fully placed in service by December 31.
3. Use New and Expanded Tax Credits for Employee Benefits
The One Big Beautiful Tax Act expands several tax credits designed to support small businesses that provide meaningful benefits to their employees.
Highlights include:
- A 50% tax credit for employer-provided childcare (up from 25% previously).
- Enhanced credits for offering paid family and medical leave.
- Expanded deductions for health and wellness benefits that improve retention and productivity.
Why it matters:
These incentives reduce your overall tax burden and strengthen your business culture. Offering better benefits isn’t just good HR — it’s now a powerful tax strategy.
What to do:
Review your current benefits package with your CPA or HR consultant to determine which programs qualify and how to maximize the available credits.
Final Thoughts
The One Big Beautiful Tax Act delivers fresh opportunities for entrepreneurs and professionals to build wealth more efficiently. But capturing these benefits requires more than compliance — it takes proactive planning.
By focusing on:
- The 20% QBI deduction,
- Accelerated expensing, and
- Expanded benefit credits,
you can reduce your tax bill, improve cash flow, and reinvest confidently in your business’s future.
Now is the time to schedule a tax planning session and make sure you’re positioned to benefit from these new rules before year-end.