2025 PENDING TAX BILL

2024–2025 Tax Bill Highlights: Key Updates That May Benefit You

If you're a small business owner, real estate professional / owner, or managing your own personal finances, recent tax proposals could have a meaningful impact on your bottom line. Below is a summary of key provisions from the new proposed tax bill (pending) — including a return of 100% bonus depreciation, expanded credits, and deductions that may reduce your tax liability.

1. 100% Bonus Depreciation Restored

Bonus depreciation is back — and it's a big deal for business owners and real estate professionals / owners.

• The proposal restores 100% first-year bonus depreciation through 2026 for qualifying business assets like rentals, commercial buildings, equipment, vehicles, and property improvements

• Cost segregation studies will be popular planning vehicles

• This is a powerful tax strategy for reducing taxable income in the year you make large capital investments

• There are some retroactive 2024 provisions in the pending bill

2. Enhanced Child Tax Credit

• Proposed increase to $2,500 per child, effective in 2025 and adjusted for inflation thereafter

• A portion would be refundable, benefiting lower-income families who may not owe much in taxes

3. New $4,000 Senior Deduction

• A $4,000 federal tax deduction for seniors aged 65 and up — regardless of Social Security status

• Intended to ease tax burdens for retirees on fixed or moderate incomes

4. Exclusion of Tip and Overtime Pay from Income

• Tips and overtime wages would be excluded from taxable income under the proposal

• Aims to increase take-home pay for hourly workers and those in service industries

5. Adoption Credit Becomes Partially Refundable

• Makes the adoption tax credit refundable up to $5,000

• Expands access for families even with low tax liability

6. SALT Deduction Limit Increased

• Raises the State and Local Tax (SALT) deduction cap to $15,000 (single) and $30,000 (married)

• Offers relief to taxpayers in high-income or high-property-tax states

Why These Tax Change Matter (still pending w/ Senate)

This proposed legislation could significantly affect tax planning in 2024, 2025, and beyond. Whether you’re investing in your business, growing a real estate portfolio, or raising a family, these updates may help you:

• Lower taxable income

• Improve cash flow

• Claim more deductions and credits

Ready to Maximize Your 2025 Tax Strategy?

Balanced Equity LLC specializes in helping individuals and business owners plan smarter and keep more of what they earn. Contact us today for a personalized consultation.