Breaking Down the Senate’s New Tax Bill: What It Means for Small Business Owners
Senate Tax Bill Could Deliver Big Wins for Small Business Owners
A new tax bill currently making its way through Congress may bring much-needed relief to small business owners across the country—if it’s passed in time.
Attorney and CPA Mark J. Kohler broke down the breaking news in a recent video, explaining the most important elements of the Senate proposal now under negotiation with the House. Lawmakers are pushing to finalize the bill before the July 4th holiday, and for Main Street entrepreneurs, the potential savings are substantial.
Among the bill’s most notable provisions is an increase in the standard deduction, which could help small business owners lower their taxable income without complicated planning. The legislation also includes significant changes to the Qualified Business Income (QBI) deduction, making it easier for pass-through entities like LLCs and S-corporations to keep more of their income.
One of the biggest opportunities lies in the revival of enhanced bonus depreciation. This provision would allow business owners to immediately write off more of the cost of certain business assets—like equipment or vehicles—rather than spreading those deductions over several years. Kohler emphasized that this kind of accelerated depreciation can result in thousands of dollars in tax savings for companies making strategic investments.
But the clock is ticking.
“If this bill passes—and that’s still an ‘if’—small business owners need to act quickly to take advantage of the changes before the end of the year,” said Kohler. “These strategies could put serious money back in your pocket, but only if you’re paying attention and planning ahead.”
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The video includes not just a breakdown of what’s in the bill, but also real-world examples of how these tax strategies apply, and who stands to benefit the most.
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Key Highlights from the Video
Enhanced Tax Deductions
The proposed bill includes provisions for increased standard deductions, allowing small business owners to reduce their taxable income more effectively.
Qualified Business Income (QBI) Enhancements
Adjustments to the QBI deduction could provide additional tax relief, particularly benefiting pass-through entities like S-corporations and LLCs.
Bonus Depreciation
The bill proposes enhanced bonus depreciation, enabling businesses to deduct a larger portion of the cost of qualifying property in the year it’s placed in service.
Urgency for Action
Mark emphasizes the importance of staying informed and consulting with tax professionals to take advantage of these potential benefits promptly.
Conclusion
The Senate’s new tax bill presents a significant opportunity for small business owners to reduce their tax liabilities. By understanding the proposed changes and acting swiftly, entrepreneurs can position themselves to benefit from these potential savings. Stay tuned for further updates as the bill progresses through the legislative process.
Mark J. Kohler, who has long advocated for small business tax education, urged viewers to not wait on their accountant or financial advisor to notify them. “This is your business and your money. No one will care about it more than you,” he said. For business owners, especially those currently managing growth or planning for retirement, this legislation could be a turning point. With potential boosts to cash flow and a simplified path to strategic planning, the bill is designed to strengthen the small business backbone of the U.S. economy.
