The Big Beautiful Bill: What Business Owners Need to Know

In this four-part series we will implications for business owners.

Part 1: Overtime & Tips Tax Savings

Part 2: Section 179 Expansion

Part 3: Bonus Depreciation Made Permanent

Part 4: Choosing the Right Depreciation Strategy

PART 1: New Tax Savings on Overtime & Tips (2025–2028)

New tax legislation is creating real savings opportunities for employees—and new compliance responsibilities for employers.

Under recent changes, certain overtime pay and tip income may now be excluded from federal taxable income from 2025 through 2028.

Here’s what you need to know:

✔ Only the overtime premium portion qualifies for exclusion

✔ Qualified tips must be voluntary and properly reported

✔ New W-2 reporting requirements begin in 2026

✔ Income limits apply for eligibility

For businesses, this means payroll systems should be reviewed to make sure these are properly tracked and reported.

For employees, this could mean lower taxable income and increased take-home pay.

At BUSBooks, we’re helping clients:

  • Review payroll reporting systems
  • Ensure compliance with new W-2 requirements
  • Maximize available tax benefits

PART 2: Section 179 Just Doubled—Here’s What It Means for Your Business

If your business is planning equipment or vehicle purchases, this is important.

The Section 179 deduction has been significantly expanded:

Up to $2.5 million in immediate expensing (starting 2025)

This allows you to:

✔ Deduct the full cost of qualifying assets

✔ Reduce taxable income immediately

✔ Improve cash flow

However, timing and profitability matter—Section 179 works best when your business has sufficient income to absorb the deduction.

At BUSBooks, we help clients:

  • Strategically time purchases
  • Evaluate tax impact before year-end
  • Coordinate federal and state treatment

PART 3: 100% Bonus Depreciation Is Here to Stay

One of the biggest tax updates for businesses is now official:

100% bonus depreciation is permanent

This means you can:

✔ Fully depreciate qualifying assets in year one

✔ Generate tax losses if needed

✔ Plan long-term with confidence

Unlike Section 179, bonus depreciation:

  • Has no income limitation
  • Can create losses
  • Applies automatically unless elected out

This creates powerful planning opportunities—but also requires careful coordination with your overall tax strategy.

BUSBooks can help you determine:

  • When to use bonus depreciation vs. Section 179
  • How to optimize deductions across multiple years
  • The impact on your personal return

Let’s build a strategy that works for your business.