What Trump’s New 2025 Tax Policies Mean for Small Business Owners

What Trump’s New 2025 Tax Policies Mean for Small Business Owners

With 2025 tax policies on the horizon, small business owners have some exciting opportunities to save, invest, and grow. Here’s a quick rundown of the key changes and how they could benefit your business:

1. Tax Rates Stay Steady

No increases in tax rates mean you can budget with confidence and focus on reinvesting in your business without worrying about higher taxes eating into your profits.

2. Increased Standard Deductions

Standard deductions for individuals and married couples are higher, reducing taxable income and leaving you with more to reinvest or save.

3. Removal of the SALT Deduction Cap

For those in high-tax states, the removal of the SALT deduction cap could mean significant savings, allowing you to deduct more on your federal taxes.

4. Return of 100% Bonus Depreciation

You can now write off the full cost of eligible property and equipment in the year of purchase, which is perfect for investing in new equipment or expanding your business.

5. Continued QBI Deduction

The 20% Qualified Business Income deduction remains, offering tax savings on business profits. Ensure your business structure is optimized to take full advantage.

6. New Exemptions for Social Security and Tips

Tax exemptions for Social Security, tips, and overtime income can help you keep more of what you earn.

7. Higher Start-Up Deductions

New entrepreneurs can now deduct up to $50,000 in start-up costs, a huge relief when launching a business.

Take Action:

  • Reassess your budget and plan for large purchases, leveraging 100% bonus depreciation.
  • Ensure your business structure supports QBI eligibility.
  • Consult a tax professional to maximize deductions and credits.

By taking action early, you can capitalize on these changes and position your business for success in 2025.

Need help navigating these changes? Book a call with me to review your tax strategy and make sure you're maximizing the benefits of the new tax policies for your business. Click here to schedule your call!

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