Carl Seidman, CSP, CPA

This is the 3rd of several posts regarding the "One Big Beautiful Bill Act", or OBBBA. This post concerns changes for business entities. OBBBA extends the 20 % qualified business income deduction (QBI). There is an increase in the deduction limit phase-in from $50K to $75K for non-joint returns & $100K to $150Kfor joint returns. Bonus depreciation is extended. The allowance is increased to 100% for property acquired & placed in service on or after 01/19/2025, as well as for specified plants planted or grafted on or after 01/19/2025. OBBBA increases the maximum amount a taxpayer may expense under Code Sec. 179 to $2.5 million, reduced by the amount by which the cost of qualifying property exceeds $4 million. These amounts will be adjusted for inflation annually. OBBBA allows businesses to immediately deduct domestic research or experimental expenditures paid or incurred in tax years beginning after December 31, 2024. If this affects your business, please call us, as there are numerous rules and restrictions around this area. OBBBA allows taxpayers an additional first-year depreciation deduction equal to 100% of the adjusted basis of "qualified production property." This is defined as nonresidential real property in the United States used for manufacturing & placed in service after 07/04/2025 and before 01/01/2031. OBBBA increases the cap on the deductibility of business interest for tax years beginning after 12/31/2024. Specifically, "adjusted taxable income" aligns with the financial accounting concept of earnings before interest, taxes, depreciation & amortization (EBITDA). For payments made after 12/31/25, OBBBA increases the threshold for reporting payments on Forms 1099-MISC and 1099-NEC for services performed by independent contractors from $600 to $2,000. 1099-K reporting modified reporting requirement for payees unless they have earned more than $20,000 on more than 200 separate transactions in an applicable tax period. For tax years beginning after July 4, 2025, OBBBA adds a new provision that allows capital gains from the sale or exchange of qualified farmland property to a qualified farmer to be paid in four equal annual installments, beginning on the original due date of the tax return for the tax year in which the sale or exchange occurred. For tax years beginning after 12/31/25, OBBBA allows a deduction for corporate charitable contributions only to the extent that the aggregate of corporate charitable contributions exceeds 1% of taxable income. Expansion of Qualified Small Business Stock Gain Exclusion. See us for details on this part of the law. OBBBA permanently increases the employer-provided childcare credit & creates a separate credit amount for qualified small businesses. Termination of Clean Energy Credits. OBBBA terminates an array of business-related clean energy tax credits enacted by the Inflation Reduction Act of 2022. Call us at 901-684-7474 to set up a time to discuss tax strategy.

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𝐘𝐞𝐚𝐫-𝐞𝐧𝐝 𝐦𝐨𝐯𝐞𝐬 𝐭𝐨 𝐬𝐞𝐭 𝐲𝐨𝐮𝐫 𝐩𝐫𝐚𝐜𝐭𝐢𝐜𝐞 𝐮𝐩 𝐟𝐨𝐫 𝐬𝐮𝐜𝐜𝐞𝐬𝐬 𝐢𝐧 𝟐𝟎𝟐𝟔 Advisors should evaluate team structure, audit technology for efficiency, prioritize succession planning, address stalled initiatives, conduct self-assessments and celebrate wins before the end of the year, according to Beverly Flaxington of The Collaborative. "The more you can automate, the more time you can dedicate to finding new clients and working with the ones you have," Flaxington writes. #CavalierAssociates #FinancialIntelligenceReport #InsuranceAdvisors #AdvisorStrategy #PracticeManagement

Association Budgeting and Forecasting: Smarter Planning for the Year Ahead. Effective association budgeting starts with understanding how your financial choices support the programs and services your members rely on most. As this year winds down, associations enter one of the most important times of the year. Year-end planning is underway, financial teams are reviewing revenue and expenses, and leadership is preparing for the new fiscal year. It can feel like a lot, but this period also offers a valuable chance to clean up your financials, tighten your budgeting process, and set clearer expectations for the coming year. Below are practical, end-of-year steps to help your team plan more strategically, with support from the EMS and Financial Management tools that keep your operations running smoothly. https://lnkd.in/d7uuETrb #IBC #IntuitiveBusinessConcepts #SageIntacct #2026forcasting #financialmanagement

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