Need Expert Guidance on the OBBBA? Trust SoFla Prime Consulting

SoFla Prime
Jul 2, 2025
4 min read

Updated: Aug 4, 2025

Navigating the complexities of Trump’s One Big Beautiful Bill can be daunting. SoFla Prime Consulting, led by Douglas Kohn, MBA, CPA, is here to help. With decades of expertise in tax planning and business strategy, our team can guide real estate investors, small businesses, and individuals through provisions like excess business losses, accelerated depreciation, and LIHTC opportunities.

Unpacking Trump’s One Big Beautiful Bill: A Deep Dive into Its Tax Provisions

President Donald Trump’s “One Big Beautiful Bill” (OBBBA) was officially passed by the U.S. House of Representatives on May 22, 2025. This sweeping tax reform package aims to extend and expand the 2017 Tax Cuts and Jobs Act (TCJA) while introducing new incentives and provisions. Championed as a pro-growth, pro-family, and pro-business legislative milestone, the bill has sparked both enthusiasm and controversy.

From reinstating 100% bonus depreciation to creating new savings accounts, the OBBBA seeks to reshape the U.S. tax landscape. In this blog post, we’ll explore the bill’s key components, focusing on excess business losses, affordable housing, and accelerated depreciation. We will also discuss their potential implications for businesses, investors, and everyday Americans.

What Is the One Big Beautiful Bill?

The OBBBA is a comprehensive tax and spending package that builds on the TCJA. The TCJA temporarily lowered income tax rates, doubled the standard deduction, and introduced business-friendly provisions like bonus depreciation. With many TCJA provisions set to expire at the end of 2025, the OBBBA aims to make these changes permanent while adding new tax incentives, such as:

“No Tax on Tips” and “No Tax on Overtime” deductions
“Trump Accounts” for children
Border security, energy, and healthcare provisions

According to the Tax Foundation, the bill is projected to increase long-run GDP by 0.8%. However, it may reduce federal tax revenue by $4.0 trillion from 2025 to 2034. This could potentially add $2.4 to $3.3 trillion to the federal deficit, according to CBO estimates.

Key Provisions of the OBBBA

Permanent TCJA Extensions

The OBBBA makes permanent the TCJA’s lower personal income tax rates, doubled standard deduction, and increased child tax credit. The child tax credit will receive a temporary boost to $2,500 through 2028.

No Tax on Tips and Overtime

This provision introduces above-the-line deductions for tipped income and overtime pay. It fulfills Trump’s campaign promises to support service workers.

Trump Accounts

The bill creates tax-exempt savings accounts for children under 18. It includes a $1,000 federal credit for kids born between 2025 and 2028.

Business Incentives

The OBBBA restores 100% bonus depreciation. It also expands the Section 179 expensing cap to $2.5 million and reinstates immediate expensing for domestic R&D.

SALT Cap Increase

The bill raises the SALT deduction cap from $10,000 to $30,000 (or $40,000 in some versions). There are phaseouts for high incomes.

Opportunity Zones

The OBBBA reestablishes Opportunity Zones from 2027 to 2033, focusing on rural areas with enhanced tax benefits.

Spotlight: Excess Business Losses, Affordable Housing, and Accelerated Depreciation

Excess Business Losses

The bill makes permanent the limitation on excess business losses for noncorporate taxpayers. In 2025, the threshold is $313,000 for single filers and $626,000 for joint filers. Losses beyond that are converted into NOLs, subject to annual caps.

Impact: This limitation restricts the ability of high-income investors, especially real estate professionals, to use losses to offset other income. It could discourage loss-driven tax strategies.

Affordable Housing

Enhancements to the Low-Income Housing Tax Credit (LIHTC) include restoring the 9% credit to 2021 levels. There is also a 12.5% allocation increase and reduced bond-financing thresholds for the 4% credit.

Impact: These changes encourage development in rural and Tribal areas. However, some critics argue that other tax incentives in the bill may indirectly increase property prices.

Accelerated Depreciation

The OBBBA reinstates 100% bonus depreciation for qualifying property acquired after January 19, 2025. It also adds a new 100% deduction for “qualified production property.”

Impact: This provision serves as a strong tax incentive for industrial and commercial developers. Larger firms benefit the most, potentially widening the competitive gap.

Broader Implications and Controversies

The bill promises significant economic benefits:

Take-home pay increases of $7,800 to $13,300 for a family of four.
Wage boosts of $6,100 to $11,600 for the average worker.

However, it has also sparked controversy:

It adds $2.4 to $3.3 trillion to the deficit over 10 years, according to CBO.
Critics argue it favors corporations and high earners.
Cuts to green energy credits have angered environmental groups.

Supporters, including banks and manufacturers, claim the bill promotes long-term growth. This is especially true in sectors like real estate, energy, and industrial production.

What’s Next?

The Senate version of the bill passed with VP JD Vance’s tie-breaking vote. However, changes to SNAP, SALT, and sunset dates for provisions may trigger negotiations with the House.

Next Steps for Stakeholders:

Monitor amendments to the bill.
Assess long-term planning strategies.
Consult professionals to leverage short-term provisions.

Conclusion

Trump’s One Big Beautiful Bill offers expanded incentives and permanent reforms. However, it also invites significant fiscal and social debate. Key provisions on depreciation, business losses, and housing could drive growth or widen inequities. The impact will depend on implementation and enforcement.

Sources:

Tax Foundation: Preliminary Details and Analysis of the OBBBA
House Ways and Means Committee: OBBBA Press Release
Buchanan Ingersoll & Rooney PC: OBBBA Simplified Overview
Proskauer Tax Talks: Key OBBBA Provisions
The Real Estate CPA Podcast: What Real Estate Investors Need to Know
CBS News: What’s in Trump’s One Big Beautiful Bill
CLA Connect: OBBBA’s Impact on Real Estate
CNN Business: Affordable Housing Impact
BBC News: Legislative and Fiscal Impacts
Politifact: Fact-Checking Economic Claims
CNBC: Banking Industry Response
White House:

- Economic Benefits of the OBBBA

- Deficit and Spending Clarifications

- Supporters Speak Out

- Growth and Tax Cut Claims

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