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​Anthony McVeigh, MSA, CPA •

The Qualified Business Income (QBI) deduction under Section 199A was originally enacted with the 2017 Tax Cuts and Jobs Act (TCJA) and was set to expire at the end of 2025. The QBI deduction allows up to 20% of qualified business income and qualified real estate investment trust (REIT) dividends to be deducted. This only applies to sole proprietors and owners of pass-through entities such as partnerships, S corporations, and LLCs taxed as those entities. C corporations are not eligible. This deduction is subject to several limitations, including income thresholds, wage and property tests, and special rules for specified service businesses or SSTBs (like law, health, and consulting).

Anthony McVeigh, MSA, CPA •

Bonus Depreciation
 
The 2017 Tax Cuts and Jobs Act (TCJA) created a temporary 100 percent bonus depreciation provision, with a gradual phase out over time. Starting in 2023, the bonus depreciation started to phase out, with a business only being allowed to deduct 80 percent in 2023, then dropping 20 percent each year. This was to continue until 2027, when it was scheduled to be eliminated entirely. Bonus depreciation primarily covered machinery, equipment, and qualified improvement property such as interior improvements to nonresidential buildings.

Dana Bull, CPA, MST contributed to the NH Business Review this month for their Ask the Experts section on Tax Planning and Policy.

"Q: What regulations should business owners be aware of as it relates to tax planning for 2025 and 2026?
A: The current administration recently passed the One Big Beautiful Bill Act on July 4, 2025. In addition to making permanent many provisions originally set to expire from the Tax Cuts and Jobs Act of 2018, the Act also introduces changes that affect deductible expenses and business credits. Here are three changes to take note of.

Dana Bull, CPA, MST •

The One Big Beautiful Bill Act (OBBBA) was passed on July 4, 2025. In addition to making permanent many provisions originally set to expire from the Tax Cuts and Jobs Act of 2018, the OBBBA also introduces changes that affect deductible business expenses. One of the more taxpayer-friendly provisions is the ability to immediately deduct domestic research and experimental expenditures that were previously required to be capitalized.

Alyssa Hodges, CPA, CVA •

​The 2017 Tax Cuts and Jobs Act (TCJA) significantly reduced the amount of taxes that individual taxpayers can deduct as part of itemized deductions on individual income tax returns. As a workaround, many states implemented pass-through entity (PTE) tax options and elections on their business tax returns.

​The One Big Beautiful Bill Act (OBBBA) was silent on the treatment of PTE taxes, however, there are significant changes to the rules for individual taxpayers who itemize which may make PTE taxes and elections less favorable moving forwards.