The passage of President Donald Trump’s One Big Beautiful Bill marks one of the biggest tax overhauls in years. The bill will reshape how high earners and business owners plan for their taxes, and smart filers are already making changes to lock in the new benefits provided by key measures like the expanded SALT deduction cap and the increased Qualified Small Business Stock exemption.
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Rachel Richards, CPA and head of tax at Gelt, shared what proactive filers should be doing now to lock in benefits for 2025.
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Expand Your Business With Section 179 Upgrades
If you’re a physician or another high-spending professional, now is a great time to grow your business.
“If you’re thinking of expanding, the tax code just gave you more room to maneuver,” Richards said. “With Section 179, expensing limits are now bumped up to $4 million from $2.5 million. Financing new equipment or opening another location could be more rewarding than ever.”
Maximize SALT Deductions
If you’re a business owner, there are two ways you can handle your state and local taxes (SALT). One way is to list them on your personal tax return or you can let your business pay them for you using the Pass-Through Entity Tax (PTET).
“Now is the time to think strategically about how you handle state and local tax (SALT) deductions,” Richards said. “With new itemized deduction thresholds in play, comparing that route to the Pass-Through Entity Tax (PTET) election might open the door to greater federal savings — if you structure things wisely.”
Invest In Real Estate for New Passive Loss Benefits
Trump’s bill provides additional tax benefits to real estate investors, making acquiring real estate more attractive.
“Owning your office building or investing in short-term rentals could unlock major tax benefits, especially if you can treat losses as active and offset other income,” Richards said.
Use QSBS Rules To Plan a Tax-Free Exit
The Qualified Small Business Stock (QSBS) exemption is a special tax rule that helps entrepreneurs save on taxes when they sell their shares later. The QSBS exemption now goes up to $15 million under certain conditions
“Plan ahead if you’re starting a new venture,” Richards said. “This isn’t something you want to miss.”
For the more advanced, there’s also a way to “stack” QSBS benefits across shareholders. This means that if you have friends or family who own shares too, each person can get their own tax break.
“[This strategy is] definitely worth discussing with your tax advisor,” Richards said.
Claim Up to $15 Million in Tax-Free Gains
If you’re an angel or early-stage investor in a company, when you sell your shares later, you’d normally have to pay hefty taxes on the money you made. But now, you might not have to pay taxes on up to $15 million or 10 times what you originally invested — whichever is more.
Only certain startups qualify for the deduction, but this has also expanded — the asset threshold has increased from $50 million to $75 million.
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This article originally appeared on GOBankingRates.com: Expert: 5 Ways To Lock in Benefits From Trump’s New Tax Bill
