19/01/2026
New Tax Breaks for Self-Employed & Small Business Owners in 2025!
The One Big Beautiful Bill Act (signed July 2025) just made life easier for the self-employed, sole proprietors, freelancers, gig workers, and small biz/LLC owners. These apply to your 2025 taxes (filing now in 2026) and beyond.
Here are quick, simple highlights, because who has time for tax jargon? 😎
1. 20% Qualified Business Income (QBI) Deduction.
Perfect for most self-employed, tradespeople, landlords, and pass-through LLCs (some services have income caps).
⏺️Deduct up to 20% of your business profit straight off your taxable income.
⏺️Example: Make $50k profit? Potentially save taxes on $10k of it!
It's permanent now (was going away after 2025).
⏺️Starting 2026, get a minimum $400 deduction if you have at least $1k profit.
2. 100% Bonus Depreciation ➡️Full Write-Off on New Stuff!
Buy business equipment, trucks, computers, machinery?
⏺️Deduct 100% of the cost in Year 1.
⏺️Permanent for stuff placed in service after Jan 19, 2025.
⏺️No more slow depreciation. Which is great cash flow boost when upgrading your gear!
3. Section 179 Expensing ➡️ Doubled Limits!
Awesome for small businesses grabbing tools or office upgrades fast.
⏺️Immediately deduct up to $2.5 million on qualifying purchases (equipment, software, improvements).
⏺️Phase-out starts at $4 million in total buys (both numbers adjust for inflation).
4. Immediate Deduction for U.S. Research & Development (R&D)
It's huge for inventors, software folks, or manufacturers tinkering.
⏺️Spend on developing new products, apps, processes? Deduct 100% right away (no more 5-year spread).
These changes help prevent a tax hike and put more money back in your pocket for growing your business. Rules can depend on your income, business type, and specifics.
Ready for 2025 taxes? Fill out my Get Started Intake Form (LINK IN BIO). I'm happy to hop on a call and review how this fits YOU!
You've earned these breaks ,let's claim 'em! 📈💰