Business Owners
Business Tax Changes
The One Big Beautiful Bill preserves the Qualified Business Income (QBI) deduction, raises Section 179 expensing limits, and trims the charitable giving deduction from 37% to 35%.
What this means for you:
- Higher Section 179 limits make it easier to write off equipment and technology purchases upfront.
- Charitable contributions still create deductions, but at a slightly reduced benefit. Consider accelerating donations before rates fall further.
- Rules are subject to change in 2026, so timing matters.
Just like retirees must manage their AGI thresholds, business owners need to manage deductions wisely before rules shift again.
Investment Incentives
The OBBB expands Qualified Small Business Stock (QSBS) rules and strengthens Opportunity Zone incentives, rewarding reinvestment into businesses and communities.
What this means for you:
- Selling eligible QSBS could now result in greater tax-free gains.
- Enhanced Opportunity Zone incentives make community-focused investments more attractive.
- These rules create planning windows—delay could mean missed tax advantages.
Similar to retirees weighing Roth conversions during a short window, business owners have a limited time to optimize reinvestment strategies.
Employee Benefits & Healthcare
Shrinking premium tax credits under OBBB mean higher health coverage costs, raising the price tag of offering employee benefits.
What this means for you:
- Employers may need to re-evaluate health plan contributions.
- Rising costs can affect talent retention and long-term planning.
- Alternative benefit structures may help offset expenses.
Where retirees must watch income thresholds to maintain deductions, business owners must monitor benefit costs closely to protect margins and employees alike.
Estate & Succession Planning
The estate tax exemption has increased to $15 million per person but only temporarily.
What this means for you:
- Business owners have a rare opportunity to transfer more wealth tax-free.
- Succession plans should be updated now, while the exemption is high.
- Without planning, heirs could face significantly higher taxes when today’s rules sunset.
Much like retirees’ temporary deduction relief, this is a window that will close. Planning early ensures family and business continuity.