Big Beautiful Bill - The Tax-Specific Highlights
Signed into law on Friday, July 4, 2025
TL;DR:
100 percent bonus depreciation retroactive to January 1, 2025 (Bitcoin miners rejoice)
Deduct up to $10,000 of personal vehicle interest through 2028
Child Tax Credit increases and core credits locked in through 2031
Cap on deductible property taxes raised to $40,000 in 2025 from $10,000 in 2024, phases down to $10,000 by 2030
New $6,000 senior deduction (ages 65+, 2025–2029)
Charitable-giving deduction up to $1,000 (single)/$2,000 (married) for non-itemizers starting 2026
On July 1, the Senate passed H.R. 1 by a 51–50 vote (VP Vance tie-breaker), the House approved that identical text on July 3, and the President signed it the next day. Here’s what landed in the final law—and what didn’t—plus how to turn it into smarter 2025 decisions.
What’s In:
- No change to current tax rates
2017 individual brackets (top rate 37% for high earners), standard-deduction boosts, 20% QBI deduction under existing thresholds, and core credits (Child Tax Credit, savers’ credit, ABLE enhancements) locked in through 2031.
- Full Expensing & Bonus Depreciation
100% bonus depreciation and Section 179 write-offs for qualifying equipment, retroactive to January 1, 2025. This is especially meaningful to bitcoiner miners who might be looking to add ASICs to their fleet in 2025.
- State & Local Tax (SALT) Update
SALT deduction cap at $40,000 in 2025, phases down until 2030, then reverts to $10,000; income over $500,000 phases the cap down by 30% of excess (but never below $10,000).
- Qualified Business Income Deduction
20% QBI deduction remains intact, with no new phase-outs or threshold changes through 2031. If you own a small business, no change in your tax rates.
- Corporate Rate
Flat 21% corporate tax rate unchanged.
- Payroll Changes
Tip income and authorized overtime pay exempt from income-tax withholding (in approved occupations). We’ll have to wait to see more specifics on who specifically is eligible for tips income.
- Health & Retirement Flexibility
HSAs: spouses—even Medicare-eligible—can make catch-up contributions; permanent savers’-credit enhancements.
- New Senior Deduction
Ages 65+ receive an annual $6,000 deduction (2025–2029) above the standard deduction; Social Security wages remain taxable. This is not an “elimination of taxes on social security”, but can certainly lower the taxable income for those that are currently withdrawing.
- Estate & Trust Taxes
Estate & gift exemption at $12.92 million per individual through 2025, rising to $15 million (indexed) in 2026; trust-and-estate tax brackets/rates unchanged through 2031. If you are a HNWI, now would be good time to looking establishing a Trust, if you haven’t already.
- New Savings Vehicle for Minors
Non-deductible contributions up to $5,000/year for under 18s; funds locked until age 18; one-time credit of $1,000 for births 2025–2028. It appears this fund will be limited to “index funds”.
- Auto-Loan Interest & EV Credits
Deduct up to $10,000 of U.S.-assembled car-loan interest through 2028; new/used EV and energy-efficiency credits expire end-2025..
- Charitable-Giving Deduction
Starting 2026, up to $1,000 (single) or $2,000 (married) deductible for cash gifts without itemizing. In prior year we often saw individual donate to charities, but because they took the stand deduction, received no tax benefit. This will be a nice change for those who make contribution on an annual basis.
- 1099-K Reporting
Threshold reset to $20,000/200 transactions for payment-platform reporting, effective 2025. Previously the government was looking to make your Venmo/Paypal payments over $600 per year reportable on a 1099-k. This reigns that in so that you reimbursing your friend for a burrito is not reported to the IRS.
- R&D Expense Treatment
Suspension of §174 capitalization (2025–2029) with full immediate deduction or optional amortization (60 months or 10 years); coordination rules with the §41 research credit. Big change for many companies building in the bitcoin space that previously were limited to how much of their payments to developers were deductible for tax purpose. Now those cost will be treated like any other expense of the business
What’s Out:
- No crypto de minimis relief.
- No mining-income timing amendment (mined Bitcoin still ordinary income on receipt).
Senator Lummis has already started talking about getting these changes in future bills, so we’ll continue to monitor.
Your Next Steps:
Book a 2025 Tax-Planning Session! Work one-on-one with our CPA team now to:
● Model your projected business income, equipment purchases, and SALT exposure.
● Implement robust record-keeping workflows for every transaction.
● Identify all deductions & credits—HSA, senior deduction, MAG-IRA, charitable gifts, R&D credits, and more.
Ensure your financial decisions this year are fully optimized for tax efficiency and compliance. Reach out today to schedule your planning session.