Small Business Tax Updates: Santos Consulting 2025
New Tax Law Lightens Compliance for Small Businesses
The recently signed One Big Beautiful Bill Act of 2025 (OBBBA) expands several business tax benefits while easing certain compliance obligations. Here are the highlights you should know:
Reporting threshold increases from $600 → $2,000 (effective after Dec 31, 2025).
Threshold indexed for inflation starting 2027.
💡 Tip: Update your accounting system to track vendor payments against the $2,000 limit — and always collect W-9s upfront.
Threshold rolled back to $20,000 + 200 transactions.
💡 Tip: Report all income regardless of thresholds. Keep business and personal payment apps separate to avoid IRS confusion.
🔹 Qualified Business Income (QBI) Deduction
20% deduction made permanent.
Minimum deduction: $400 if QBI ≥ $1,000.
💡 Tip: Most contractors and gig workers qualify. But if you’re in a Specified Service Trade or Business (like health, law, accounting, or financial services), income limits apply starting at $197,300 (single) or $394,600 (married).
🔹 Section 179 & Bonus Depreciation
Section 179 deduction limit: $2.5M (was $1.25M).
100% bonus depreciation reinstated (Jan 19, 2025–Dec 2029).
💡 Tip: You can combine Section 179 and bonus depreciation. Remember — it’s about timing of deductions, not extra deductions.
✅ These changes could create new opportunities for your business. Let’s talk about how they affect your specific tax plan and wealth-building strategy.
📞 Call us today or book your consultation online.
