News
It has been brought to our attention that once again QuickBooks is being deceptive with
their marketing and promotion of services. We have been recently made aware
QuickBooks on-line is informing clients of the following “Your accountant invited you to
Quickbook Payments”
WE HAVE NOT INVITED YOU TO JOIN THIS AND DO NOT RECOMMEND THIS OR
ENDORSE IT IN ANY WAY. Please be aware and do not sign up for this service unless
YOU are interested.
Legislative Summary: The “One Big Beautiful Bill” (OBBB) or The Bill– Tax Reform Overview
On July 4, 2025, President Donald J. Trump enacted H.R. 1 of the 119th Congress, formally titled the One Big Beautiful Bill (OBBB). This expansive legislative package builds upon the Tax Cuts and Jobs Act (TCJA) of 2017 and introduces numerous permanent and temporarychanges affecting individual taxpayers, business entities, and international transactions. At 870 pages in length, the OBBB represents a comprehensive and transformative revision of the Internal Revenue Code.
This memorandum provides an executive-level summary of important tax provisions and their potential implications for U.S. taxpayers. It is intended to assist in evaluating planning strategies in light of this significant legislative development but in no way is it a complete analysis.
I. Individual Tax Provisions
Permanent Extensions and Modifications to TCJA Provisions:
Individual Income Tax Rates: The Bill makes permanent the TCJA’s marginal income tax brackets, maintaining rates between 10% and 37%. Long-term capital gains remain taxed between 10% and 20%, with the 3.8% Net Investment Income Tax continuing to apply.
Standard Deduction: Codifies increased deduction levels: $15,750 for single filers,$31,500 for joint filers, and $23,625 for heads of household. Indexed annually for inflation.
Charitable Contributions (Standard Deduction Filers): Allows an additional
deduction of $1,000 (single) or $2,000 (joint) for qualified charitable contributions.
Personal Exemptions: Permanently repealed.
Itemized Deductions Adjustments:
State and Local Tax (SALT) Deduction: Increased to $40,000 with a phased reduction commencing at $500,000 AGI. The original $10,000 cap is reinstated in2030.
Mortgage Interest Deduction: The $750,000 loan cap under TCJA is retained permanently.
Charitable Contributions: Deductibility limited to amounts exceeding 0.5% of AGI.
Miscellaneous Deductions and Casualty Losses: Permanently disallowed except for federally declared disaster losses.
Child-Related Tax Credits:
Child Tax Credit: Increased to $2,200 per qualifying child, with $1,700 refundable.Requires a valid SSN for each child.
Child and Dependent Care Credit: Enhanced to 50% of eligible expenses, subject to income-based phaseouts.
Estate and Gift Tax:
Increases the exemption amount to $15 million per individual as of 2026, indexed for inflation thereafter.
Alternative Minimum Tax (AMT):
Permanently increases the exemption to $500,000 (single) and $1,000,000 (joint), indexed for inflation. Prior issues related to “bracket creep” have been largely resolved.
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II. Temporary Provisions Applicable to Individuals (2025–2028)
Overtime Pay Deduction: Deductible up to $12,500 (single) or $25,000 (joint) above standard wages; phased out above $150,000/$300,000 AGI.
Tip Income Deduction: Deductible up to $25,000 for workers in customary tipping industries; subject to the same phaseout thresholds.
Auto Loan Interest Deduction: Up to $10,000 for interest on new, U.S.-assembled passenger vehicles. Phaseouts begin at $100,000/$200,000 AGI.
Senior Deduction: Additional $6,000 deduction for taxpayers aged 65 and over; phased out at $75,000/$150,000 AGI.
III. Investment and Savings Incentives
Qualified Small Business Stock (QSBS): Enhances capital gain exclusions under §1202. Depending on the holding period (3 to 5 years), exclusions range from 50% to100%.
Opportunity Zones: Program is made permanent. However, current designations expire in 2026. New zones to be designated thereafter.
Trump Accounts for Minors: Tax-advantaged savings vehicle for minors, with up to $5,000 in annual contributions and a $1,000 credit for eligible accounts opened between 2025–2028.
Clean Energy Tax Incentives: Many credits (e.g., EVs, energy-efficient buildings) are phased out by mid-2026.
IV. Business Tax Provisions
Qualified Business Income Deduction: The 20% pass-through income deduction under §199A is made permanent.
Business Interest Expense Deduction: EBITDA-based formula restored for determining deductibility of interest, effective for tax years beginning after 2024.
Bonus Depreciation: 100% bonus depreciation reinstated for property placed in service post-January 19, 2025.
Qualified Production Property (QPP): Additional elective 100% depreciation through 2030 for eligible U.S. manufacturing and refining property.
R&D Expenses: Immediate deduction of domestic R&D expenditures allowed beginning in 2025. Small businesses may apply changes retroactively to 2022.
V. Conclusion and Action Items
The Bill represents a substantial revision to federal tax policy with both simplifying and complexifying effects. Many provisions require immediate attention for planning purposes, particularly those with short-term applicability or income-based limitations.
Contact Information
For further discussion regarding how the OBBB may impact your individual or business tax posture, please contact:
Royce A. Belcher, CPA, CEPA Royce@rabcpa.com
Danny Kasic Danny@rabcpa.com
Doris Jessie Doris@rabcpa.com
This memorandum is provided for informational purposes only and does not constitute legal or tax advice. Clients should consult with qualified advisors prior to taking any action based on the contents herein as each situation is unique and requires detailed analysis.
****Please note that the 2024 Client Information Worksheet must be completed by ALL clients (new and returning) and returns will not be filed unless this form is completed in its entirety including bank account information. We must have this information including routing and account numbers to be able to complete your return.
Per IR-2025-47 April 14, 2025
The IRS announced today tax relief for individuals and businesses for the entire state of TN affected by
severe storms, straight line winds and flooding that began on April 2, 2025. Per this disaster relief, various deadlines have been postponed until November 3, 2025.
This means, for example, that the Nov. 3, 2025, deadline will now apply to:
Individual income tax returns and payments normally due on April 15, 2025.
2024 contributions to IRAs and health savings accounts for eligible taxpayers.
Quarterly estimated tax payments normally due on April 15, June 16 and Sept. 15, 2025.
Quarterly payroll and excise tax returns normally due on April 30, July 31 and Oct. 31, 2025.
Calendar year corporation and fiduciary returns and payments normally due on April 15, 2025.
Calendar year tax-exempt organization returns normally due on May 15, 2025.
If you have given us payment: 2024 1040-V, 2025 1040-ES or a payment to go with an extension to be sent with our certified mailing and you wish to pick up any of these payments and hold them until extended deadline please notify our office by 8 a.m. on April 15th otherwise the payment will be taken to the post office for certified mailing.
The deadline for our office to file an Extension for the 2024 tax year for our clients is Saturday April 12, 2025 at 2:00 pm.
Any money that is to be sent with the Extension must be in our office by the deadline to be sent timely.
The Extension form can be downloaded HERE and a Tax Information Worksheet must also be completed and returned with the Extension Request. These completed and signed forms can be emailed to doris@rabcpa.com
We would like to take a moment to thank our clients for their patience and understanding while we navigated through the trials of the lightning strike that occurred on March 15. We ask that you continue to have patience as we move forward.
The number of things that were affected by this have been tremendous as we lost computers, monitors, printers, scanners, copiers, fax machines, internet, phones systems, cameras, credit card machines, and the list goes on.
Our vendors have been wonderful in working to get our equipment replaced in the quickest manner possible and we appreciate them. It has been a stressful process but it seems that we are finally operating at full capacity.
As hard as we worked to stay on schedule, this has set us behind but we are diligently working to gain ground daily. Our staff has been amazing through this and continue to put in the work to make it to the deadline.
Again, thank you for you understanding and patience and continue to have both as we work toward April 15.
If you are needing to file an extension for the Tax Year 2024, download a request form HERE, complete and return to our office via email (doris@rabcpa.com) of fax (615-444-6626).
You will also need to complete the Tax Information Worksheet for the Extension Request to be completed.
All forms will be due by Friday, April 11, 2025 to ensure the Extension if filed timely.
Please note: the extension only extends the time for you to file your return. This does NOT extend the due date or time to pay any outstanding tax liability if you owe additional taxes. In the event additional taxes are due and remitted after April 15, 2025 you will be subject to late payment penalties and interest. You will need to inform us of the amount you intend to send with your extension and this amount will need to be submitted along with the request for extension.
Every day brings us closer to our office being “back to normal” after the lightening strike almost two weeks ago.
We now have a working fax and have the ability to take Credit Cards again. Our phones are still being programed so not all staff has one at their desk and email is still a great way to get in touch with individual staff members.
We are still working with “loaner” copiers and scanners as we wait for ours to be delivered.
Thank you again for your patience.
We are slowly getting back to normal but it is a work in progress.
Our phone service has been restored but we do not have each individual office supplied with a phone yet as they are on order and must be programmed before delivery. You may have to leave your number and wait for a call back or you can still email individual staff members for fastest response. (doris@rabcpa.com; danny@rabcpa.com; carlene@rabcpa.com; renee@rabcpa.com; staff@rabcpa.com)
We do not have the ability to accept credit cards yet but have that machine on order also and it must be programmed as well. We can take cash, checks and Venmo at this time.
We do not have a fax machine that is working at this time, but you are welcome to email. Hopefully our fax capability will be restored within a few days.
We will keep you updated as we receive information.
Thank you for your patience during this very trying time.
Our phones are still out except for one line that is being forwarded to a cell phone. Email is still the most efficient way to connect with us. Please email any of our staff for fastest response. doris@rabcpa.com; danny@rabcpa.com; carlene@rabcpa.com; deborah@rabcpa.com; renee@rabcpa.com; staff@rabcpa.com
You can leave a message and we will return your call as soon as possible but email is the most efficient way to correspond with our office at this time. We have only one phone line to work with until our phone system is restored.
We are thankful that no one was injured and our beloved historical building was not structurally damaged.
We are working diligently with the appropriate companies to get everything back to normal as quickly as possible but we ask that our clients are patient as there are many moving parts for us to address.
Thank you for your understanding during this process.
