While the new BBB legislation comes with plenty of headline-grabbing bells and whistles—no tax on tips, a car-loan interest deduction, and other narrowly targeted perks—we want to focus on the true game-changers.
🔹 Expanded Itemized Deductions (Schedule A Is Back)
The SALT cap has been raised from $10,000 to $40,000. That means your:
Property taxes (on up to two homes),
State income taxes, and
State sales taxes
are no longer artificially capped at $10,000.
After years of near-irrelevance, Schedule A is meaningful again. This is the time to revisit charitable giving strategies and fully leverage itemized deductions to reduce your federal income tax burden.
🔹 100% Depreciation of Capital Assets
Major purchases in 2025—vehicles, machinery, equipment, and even certain rental property improvements—may now be fully deductible in the year placed in service.
No five-, seven-, or fifteen-year depreciation schedules.
No waiting.
Take the entire deduction in 2025.
WATAX Top Recommendations (Any Tax Year)
✔ Profitable, cash-flowing business?
We often recommend forming an LLC that elects S-corporation taxation, which can significantly reduce Social Security and Medicare taxes for business owners.
✔ Business owners should also consider retirement strategies, including:
SEP IRAs
Solo 401(k)s (“Owner-Ks”)
Defined benefit plans
These tools can meaningfully reduce current-year taxes while building long-term wealth.
