One Big Beautiful Bill Accounting, Finance and Tax Impact and Happy Independence Day

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Need Expert Guidance on the OBBBA? Trust SoFla Prime Consulting

Navigating the complexities of Trump’s One Big Beautiful Bill can be daunting, but 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.

Contact us at SoFlaPrimeConsulting.com to optimize your tax strategy and seize the bill’s benefits.

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

President Donald Trump’s “One Big Beautiful Bill” (OBBBA), officially passed by the U.S. House of Representatives on May 22, 2025, represents a sweeping tax reform package aimed at extending and expanding 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, with a special focus on excess business losses, affordable housing, and accelerated depreciation, and discuss their potential implications for businesses, investors, and everyday Americans.

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What Is the One Big Beautiful Bill?

The OBBBA is a comprehensive tax and spending package that builds on the TCJA, which 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% but reduce federal tax revenue by $4.0 trillion from 2025 to 2034, potentially adding $2.4 to $3.3 trillion to the federal deficit, per CBO estimates.

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Key Provisions of the OBBBA

• Permanent TCJA Extensions

Makes permanent the TCJA’s lower personal income tax rates, doubled standard deduction, and increased child tax credit (with a temporary boost to $2,500 through 2028).

• No Tax on Tips and Overtime

Introduces above-the-line deductions for tipped income and overtime pay, fulfilling Trump’s campaign promises to support service workers.

• Trump Accounts

Creates tax-exempt savings accounts for children under 18, with a $1,000 federal credit for kids born between 2025 and 2028.

• Business Incentives

Restores 100% bonus depreciation, expands the Section 179 expensing cap to $2.5 million, and reinstates immediate expensing for domestic R&D.

• SALT Cap Increase

Raises the SALT deduction cap from $10,000 to $30,000 (or $40,000 in some versions), with phaseouts for high incomes.

• Opportunity Zones

Reestablishes Opportunity Zones (2027–2033), focusing on rural areas with enhanced tax benefits.

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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 (single) and $626,000 (joint). Losses beyond that are converted into NOLs, subject to annual caps.

Impact: Limits the ability of high-income investors (especially real estate professionals) to use losses to offset other income. Could discourage loss-driven tax strategies.

Affordable Housing

Enhancements to the LIHTC include restoring the 9% credit to 2021 levels with a 12.5% allocation increase and reducing bond-financing thresholds for the 4% credit.

Impact: Encourages development in rural and Tribal areas. Some critics argue other tax incentives in the bill may indirectly increase property prices.

Accelerated Depreciation

Reinstates 100% bonus depreciation for qualifying property acquired after Jan 19, 2025. Adds a new 100% deduction for “qualified production property.”

Impact: Strong tax incentive for industrial and commercial developers. Larger firms benefit most, potentially widening the competitive gap.

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Broader Implications and Controversies

The bill promises:

• Take-home pay increases of $7,800–$13,300 for a family of four

• Wage boosts of $6,100–$11,600 for the average worker

Controversy:

• Adds $2.4 to $3.3 trillion to the deficit over 10 years (CBO)

• Seen as favoring corporations and high earners

• Cuts to green energy credits anger environmental groups

Supporters, including banks and manufacturers, claim it promotes long-term growth, especially in sectors like real estate, energy, and industrial production.

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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 negotiation with the House.

Next Steps for Stakeholders:

• Monitor amendments

• Assess long-term planning strategies

• Consult professionals to leverage short-term provisions

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Conclusion

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

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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:

o Economic Benefits of the OBBBA

o Deficit and Spending Clarifications

o Supporters Speak Out

o Growth and Tax Cut Claims

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