How the One Big Beautiful Bill (H.R. 1) Impacts Your Taxes — And How Peters Tax Can Help
- David Peters
- Jul 10
- 2 min read
The “One Big Beautiful Bill” (H.R. 1), passed on July 4, 2025, brings major changes to federal taxes. Here’s what matters most for individual and small business clients—and how Peters Tax Preparation & Consulting can help you navigate them.
Key Changes from H.R. 1
1. State & Local Tax (SALT) Deduction Cap Rises to $40,000
The SALT deduction limit increases from $10,000 to $40,000 (increased by 1% per year through 2029).
2. Pass-Through Entity Tax (PTET) Workaround Preserved
The final version of the OBBBA keeps the PTET deduction in place, allowing pass-through business owners to bypass the SALT cap.
3. Enhanced QBI Deduction
The qualified business income deduction remains at 20%, but the phaseouts have increased, creating savings for small business owners.
4. New Deductions
Tax deductions are implemented for tip income, overtime pay, and auto loan interest through 2028 (even if you don’t itemize).
5. 100% Bonus Depreciation Restored
Full expensing of equipment and property.
What It Means for Peters Tax Clients
Impact Area | Why It Matters | How Peters Tax Helps |
SALT & PTET | Business owners and wage earners may be able to save more on federal taxes | We analyze your entity structure to make sure you are getting the tax savings you are entitled to. |
Small Business Implications | Enhanced tax deductions boost savings | Optimizing QBI and entity structure to maximize deductions |
New Deductions | Tip/overtime deductions can increase refunds and lower taxes. | We can help update your withholding to account for these new deductions. |
Accelerated Depreciation | Asset write-offs reduce taxable income | We’ll align the timing of your deductions with your tax strategy. |
How Peters Tax Preparation & Consulting Assists
At Peters Tax, we integrate these new rules into your strategy through services including:
Tax Preparation: We apply the expanded SALT, QBI, and new deductions and explain to you how they impact you.
Tax Planning & Advisory: We recalibrate your estimated tax payments and evaluate your entity structure to ensure ongoing compliance and optimal savings.
Small Business & Self-Employed Support: We help you determine how to best utilize depreciation to meet your business goals.
IRS Notices & Representation: We monitor guidance, respond to notices, and support compliance.
What to Do Now
Review your estimated tax calculations.
Adjust payroll withholding.
Time your asset purchases to capture full depreciation at the optimal time.
Ready to Optimize Your Taxes?
Contact us today to review how H.R. 1 affects your unique situation and build a plan that maximizes your savings—and keeps you compliant.
By proactively adjusting your tax plan, Peters Tax ensures you're prepared to benefit from every available break. Let's get started.
Comments