The landmark One Big Beautiful Bill Act, signed into law in July 2025, introduces a sweeping set of tax reforms designed to benefit many small- and medium-sized businesses across the country — including many of our clients at Moskowitz LLP.
If you own an LLC, S-Corp, partnership, or other pass-through entity — or you run a small to mid-sized business — it’s essential to understand how these changes impact your bottom line. Let’s break down the key provisions and what they mean for you.
Major Small Business Tax Wins Under OBBBA
- Permanent Qualified Business Income (QBI) Deduction
The law makes the 20% deduction for qualified business income permanent for pass-through entities (LLCs, partnerships, S-corps, etc.). That stability provides predictable savings for years to come, making long-term planning easier. - Expanded Immediate Expensing (Section 179 & Bonus Depreciation)
Under OBBBA, small businesses can immediately deduct the full cost of qualified property and equipment (bonus depreciation) placed into service after January 19, 2025. The Section 179 deduction limit also rises substantially, allowing many businesses to deduct up to $2.5 million in qualifying investments — a big win if you’re buying equipment, upgrading property, or investing in growth. - Easier Interest Expense Deductions
For businesses that borrow money or carry debt, the interest expense deduction calculation becomes more favorable under OBBBA, removing some prior limits tied to adjusted taxable income. This makes financing business operations more attractive and tax-efficient. - More Predictable Tax Planning
Because many changes are now permanent rather than temporary or scheduled to phase out, business owners gain long-term certainty. That predictability can help with financial forecasting, cash flow planning, hiring decisions, and growth investments. - Stronger Incentives for Investment, Expansion & Hiring
By lowering tax burdens on new investments, property purchase, equipment, and business expansion — the new law encourages small businesses to reinvest and grow. For many, that could mean purchasing new assets, expanding facilities, or hiring additional staff to take advantage of the available deductions.
What Small Business Owners Should Watch Out For
- Proper bookkeeping and documentation is still essential. To claim the QBI deduction, Section 179, or bonus depreciation correctly, accurate financial records and proper classification of income and expenses are still required.
- Complexity for pass-through entities. While the QBI deduction remains, business structure (LLC, S-Corp, partnership) and how the business operates may affect eligibility — sometimes requiring careful planning or restructuring.
- Timing matters. For equipment purchases or property placed in service, the timing and nature of the asset must qualify under the new rules to fully benefit from expensing.
What Moskowitz LLP Can Do For You
The changes under the One Big Beautiful Bill open up considerable opportunities — but only if you know how to apply them. That’s where we come in:
- Help you determine if your business qualifies for QBI deduction and advise on entity structure
- Evaluate potential equipment and property investments under Section 179 or bonus depreciation to maximize tax savings
- Develop tax planning strategies that align with the new permanent rules, focusing on growth and cash flow
- Confirm documentation, bookkeeping, and financial records comply with IRS requirements to avoid unwanted issues or audits
Bottom Line: Timing + Strategy = Opportunity
The One Big Beautiful Bill Act represents one of the most significant pieces of tax reform legislation for small businesses in recent years. For many of us — entrepreneurs, service-based businesses, property owners, pass-through entities — it’s a golden opportunity to invest in growth, improve cash flow, and reduce tax liability.
But seizing this opportunity requires planning and strategy. If you’d like to see how these changes apply to your business specifically — and how you can get the most from them — we’re here to help. Let’s make 2026 your strongest year yet under the new tax law.
Contact a Tax Professional
Moskowitz LLP can help you with strategies that may benefit your situation, and we can deal with the IRS on your behalf. Schedule a consultation with a tax professional by visiting our website or by calling us today at (888) 829-3325.
