On July 4th, Congress passed the One Big Beautiful Bill — and while the name may sound theatrical, the implications for growth-focused businesses are very real.
I’m not your CPA — but I am your Fractional CFO, and this new law presents a window for you to unlock cash flow, make smarter investments, and fuel your growth with confidence.
Here are the most impactful changes for small businesses:
What Changed — and What to Do
R&D Write-Offs Are Back
If you’ve invested in internal systems, tech, or innovation, you may now fully expense domestic research & development costs starting 2025 — and even retroactively recapture deductions from prior years.
👉Meet with your CPA to evaluate past and future R&D deductions.
100% Bonus Depreciation Returns (Through 2030)
Now’s the time to plan strategic asset purchases — from tech platforms to equipment — with full first-year expensing a possibility.
👉Build a Capital Expenditure roadmap this quarter with your Fractional CFO to align with financing and tax timing.
QBI (Qualified Business Income) Deduction Made Permanent
If you’re considered a “qualified specified service trade or business”, the 20% pass-through deduction is here to stay (with enhancements).
👉Work with your CPA to determine if you qualify and if so, what your tax-adjusted profitability would be so you can explore reinvestment opportunities.
SALT Deduction Relief (For High-Tax States)
The state and local tax cap shall raise in 2026 for certain entities and adjust for inflation thereafter, which is especially valuable if you operate in NY, NJ, CA, or similar states.
👉Confirm with your CPA that your entity structure is optimized for this benefit.
Filing Threshold for 1099-NEC and 1099-MISC will raise (2026)
You’ll have to issue form 1099-NEC and 1099-MISC to individuals or entities to whom you paid at least $2,000 instead of the previous $600 threshold leading to less admin for your bookkeeper. But it’s still important to track spend for general year end tax reporting.
Temporary Deductions for Tips, Overtime, and Auto Interest (2025–2028)
Cash tips up to $25,000 per employee are now deductible from federal income tax but state and local taxes still apply. Great for teams with hourly or tipped workers — improves morale and retention, with no extra payroll cost.
👉Contact your payroll service or PEO service to make sure payroll is set up to process with this change in mind. You should also see the tax deduction breakdowns on your payroll summary reports.
Estate & Gift Tax Exemption Increased to $15M Individual / $30M Joint
This is big for family-owned businesses or founders with succession on the horizon. If you’re planning to sell, transfer, or pass your business down, this creates breathing room for strategic estate planning—without a punitive tax hit.
👉Contact a trust & estate attorney to see if this applies to you.
Your Game Plan for 3rd & 4th quarter 2025
Here’s how I recommend using this info strategically for planning:
| Task | Purpose | Timeline |
| 1. CPA Strategy Meeting | Validate which tax provisions apply to you (e.g. R&D deductions, SALT, and CapEx eligibility) | July–August |
| 2. Financial Modeling with FinCore, your fractional CFO | Run scenarios on the impact of applying certain R&D and CapEx credits to your bottomline after convo with CPA | 3Q |
| 3. Work with your CPA & CFO | Plan asset purchases to maximize bonus depreciation deduction | 3Q |
| 4. Do a Vendor audit with your bookkeeper | Prepare for 1099 threshold change and boost staff awareness | 4Q |
| 5. Succession Planning Review | Factor the estate/gift exemption into long-term exit strategy with your attorney | 4Q |
If you want support modeling the options, sequencing your spending, or prepping your financials for what’s next — I’ve got you.
Let’s schedule a 3Q financial strategy session by clicking this link.
