Sep 6 • General discussion
What's the Impact of the "Big Beautiful Bill" on Small Businesses?
Part 1 ----->
💸Lower taxes for business owners -> This bill makes permanent a tax break for small businesses like LLCs and S-Corps. It means that instead of paying taxes on every dollar of profit, you can keep about 20% of it tax-free. That’s money that stays in your pocket or can be reinvested in your business. For example, if your shop made $100,000 in profit, you’d only pay taxes on about $80,000. This can make a big difference in your cash flow and growth potential.
💻 Write off equipment faster -> Normally, when you buy big items for your business—like trucks, computers, or kitchen equipment—you have to spread the tax deduction out over many years. The new rule lets you write off the full cost the same year you buy it. That means if you buy a $20,000 delivery van, you can reduce this year’s taxes by $20,000 instead of waiting. This makes it easier to afford upgrades when your business needs them.
🚜 Bigger spending allowance - > There’s also a higher cap on how much equipment, software, or tools you can deduct in one year. The old limits meant some businesses had to spread out deductions and wait to see tax savings. Now, the cap is much higher—up to a few million dollars—so even mid-sized companies can take full deductions upfront. For small business owners, this mostly means you won’t hit the ceiling anytime soon. It gives you more freedom to invest without worrying about tax rules getting in the way.
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What's the Impact of the "Big Beautiful Bill" on Small Businesses?
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