How could a “big, beautiful account” affect small businesses Businessman

On Thursday 218-214 the house of President Donald Trump passes. (On the White House’s website, there is even a pizza tracker to Domino-“We are preparing your tax cuts …” Reads.)

President Trump is expected to sign law 4 July. After having gone through the house, House Speaker Mike Johnson (R-Louisiana) said: “What more time to go through a big, beautiful account for America than on independence day?”

The 887 -page law included tax and expenditure cuts that will affect small businesses.

Related: For small businesses come big government changes – what do you need to know

On Wednesday “Mornings with Maria” on Wednesday “Mornings with Maria” CPA and owner of small enterprises Gene Marks said that the great winners of the law “are small businesses”.

“I think it will have a huge impact on the growth of business in this country,” Marks said. “There are certain tax provisions in this bill, invest in capital equipment, expenditure on research and development, (increasing) exemption for real estate tax (A) and all were permanent, which means that small businesses can take long -term decisions on investing in their business and pass them on new generations.

Father, President Trump said, “One of the most subsequent accounts at all.”

Here are several key items that have large and small businesses:

Corporation

Tax reliefs by the Act on Tax Strikes and Jobs of 2017 will be permanent, allowing businesses to write off research and development costs.

When the Committee and resources voted to make cuts of 2017 permanent, they stated that they would “provide small businesses, manufacturers and farmers certainty and confidence to support the second economic boom of Trump through new investments and job creation”.

“Families and workers will save money from lower tax rates, larger tax credit for children and President Trump’s tax priorities for hardworking Americans: tax relief for seniors, no tips, no overtime tax and credit interest tax on US cars.”

Building and building

Businesses will be able to deduct the cost of building new production facilities in full – and much faster. According to associated builders and suppliers (ABC), which represents 23,000 members and “millions of” building staff, it states that the legislation includes several tax provisions that will “directly benefit suppliers”.

“Certainly and policy for growth are not an abstract political objectives for building companies-it is a foundation that allows ABC members to invest, grow and maintain America,” said Kristen Octaha, vice president ABC for the government.

Deductible

The bill is supported by the International Franchise Association (IFA). President and CEO Matt Haller said Businessman In June, the tax provisions in the bill “will have an extremely positive impact on 830,000 American owners of small enterprises and their million employees”.

Related: Here’s what the franchise industry means “one, large, beautiful account”

“IFA, our member brands and franchise owners were focused on Ensembring’s permanent tax relief,” Haller said. “IFA would like to thank President Trump for being important to protect the franchise owners of small businesses in front and the center and legislators for their work to get this account through the finish line.”

Eliminate tips tax

In occupations where workers receive tips (restaurants, bars, cosmetic services, etc.), the will not be taxable as taxable long. However, there are several objections: the provisions expire in 2028 and the deduction is limited to $ 25,000.

The exemption only for federal income tax, which means that state and local incomes and wage taxes would not apply. In the new version of the Senate Act, workers who earn $ 150,000 or more a year ($ 300,000 for common files) are also exempt.

No overtime tax

White House estimates indicate that employees who work overtime would save up to $ 2,000 in taxes annually.

“Overtime liberation of remuneration from the Federal Institute of Tax Edition Direct, meaningful relief for hardworking men and women in construction, rewarding long hours in the workplace,” said builders and suppliers in the form.

However, the ports of AP that the bill does not exclude taxes on social security benefits.

Deduction

The bill suggests that instead of calculating with EBIT (income before interest and taxes), the deductions of EBITDA (adds depreciation and amortization) should be calculated, which, as the White House says

State and local taxes (salt) deductions

The federal deduction for state and local taxes (SALT) will increase from $ 10,000 to $ 40,000 in 2025. According to the tax foundation, this will mainly have earnings.