Important Tax Update!

[Mohamed Youssef]

The recently enacted "One Big Beautiful Bill Act" brings significant tax updates directly affecting you and your investments. Here are the key highlights:

• 100% Bonus Depreciation Restored. Immediately deduct the full cost of property improvements, renovations, and qualifying assets. This is excellent news for managing cash flow and accelerating property reinvestments.
• Qualified Opportunity Zones Made Permanent: The Opportunity Zones program is now permanent, providing ongoing benefits such as deferring or eliminating capital gains through targeted investments.
• Permanent 20% Qualified Business Income (QBI) Deduction. Continued availability of this substantial deduction for pass-through entities (S-corporations, partnerships, LLCs), now accessible to more businesses due to higher income thresholds.
• Increased SALT Deduction Cap The deduction limit for state and local taxes significantly rises from $10,000 to $40,000, greatly benefiting those in high-tax jurisdictions.
• Expanded Child Tax Credit Starting in 2025, families will see an increased refundable credit of up to $2,200 per child, benefiting many households.

Other notable updates:

• Higher and permanently extended standard deductions.
• Permanently lower individual tax rates from the 2017 tax reforms.
• New deductions specifically introduced for seniors, overtime pay earners, and interest on auto loans for U.S.-manufactured vehicles.