Posted in Blog
By Tony Liu, Founder and Principal Business Trial Attorney
In Summary:
Congress just rewrote 900 pages of tax law. The Big Beautiful Bill locks in 2017 corporate & pass-through cuts, makes tips + overtime tax-free, restores 100 % bonus depreciation through 2027, and lifts the SALT cap to $40 K. We unpack the wins, flag hidden risks, and give you a five-step, 30-day action plan. If this new law has led to disputes or impacted your business in any way, our Newport, CA partnership dispute lawyer is here to help.
Congress approved President Trump’s One Big Beautiful Bill yesterday, capping a nail-biter 218-214 House vote. At 900 pages, the law rewrites large parts of the tax code, pours $175 billion into border security, and slices deep into social-service programs—all in one stroke. thetimes.co.uk
Tax Cuts 2025 – What Actually Changes?
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Permanent 2017 rate cuts for corporations and pass-throughs
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“No tax on tips & overtime” through 2028
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100 % bonus depreciation on qualified assets placed in service 2025-2027
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SALT cap jumps to $40,000 (up from $10k), indexed 1 % per year
These headline items are designed to goose hiring and investment while sweetening paychecks for service-sector staff. forbes.com
Pros and Cons for California & OC Businesses
Our experienced Irvine partnership dispute attorney is here to help you understand how this new law impacts your business, both positively and negatively.
SALT Deduction Cap Increase to $40,000
Pro: Owners in high-tax states like California gain a larger write-off for property and state income taxes.
Con: The benefit phases down for earners above $500 k, and critics say it skews relief toward higher-income households. taxfoundation.org
100 % Bonus Depreciation – Equipment & Real Estate
Pro: Immediate expensing can slash this year’s tax bill when you buy or build qualifying assets (machinery, tenant improvements, even some real estate).
Con: The window is short—full expensing sunsets after 2027—so cash-flow planning is critical. axios.com bakerbotts.com
Medicaid & SNAP Cuts – Indirect Risk
If your customers, tenants, or vendors depend on federal aid, reduced benefits could dent their spending power and contract stability, raising credit-risk exposure for B2B firms. thetimes.co.uk vox.com
30-Day Action Plan for Business Owners
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Run a 2025 tax-projection. Model new rates, SALT, and bonus depreciation to spot early savings.
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Fast-track cap-ex decisions. Sign POs or purchase agreements before Q4 to lock in 100 % expensing.
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Update payroll systems. Reclassify tip and overtime fields so they flow to employees tax-free.
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Review vendor contracts. Insert price-adjustment clauses if Medicaid or energy-credit changes hit their margins.
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Book a compliance check. Our litigators can flag exposure in handbooks, independent-contractor agreements, and indemnity clauses.
Need a guided walkthrough? Schedule a “Bill Impact Audit” with Focus Law’s business-tax team today.
Quick Q&A
– When do the new tax rates take effect?
Most provisions, including rate cuts and SALT expansion, start January 1 , 2026; bonus depreciation is available for assets placed in service after Jan 19 , 2025. bakerbotts.com
– Is “no tax on tips” really 100 %?
Yes—cash and credit-card tips plus overtime wages are exempt from federal income tax through 2028, but FICA/Medicare still apply. vox.com
– Will California conform to these changes?
Not automatically. Sacramento historically decouples from federal bonus depreciation; watch for a state trailer bill this fall.
– Can I still claim solar credits from 2024 projects?
Yes, projects with binding contracts signed before the law’s enactment keep legacy credits; new installations lose the credit beginning 2026. axios.com
– What if the Senate amends the law again?
Major tax items are reconciliation-protected; tweaks are possible, but core business provisions are unlikely to be clawed back this fiscal year.
Contact Our Irvine Partnership Dispute Lawyer Today
If you have questions about how this new law affects your business, our California partnership dispute lawyer is here to help. Contact Focus Law LA today to schedule a consultation.
