Tax Changes Ahead: What the OBBA Means for You
On July 4, 2025, President Donald Trump signed into law the One Big Beautiful Bill Act (OBBA)—a sweeping tax and spending bill that cements many tax rules into permanent law and introduces new deductions for individuals and businesses.
For taxpayers, families, and business owners across the country—including those in trucking, logistics, and other capital-intensive industries—the OBBA brings long-term clarity, expanded deductions, and new planning opportunities.
At Bell & Company, we’ve outlined the key provisions—and how they could affect your planning in 2025 and beyond.
Individual Tax Rates Are Now Permanent
Top individual tax rate capped at 37%
Capital gains and qualified dividend income remain capped at 20%
The 3.8% Net Investment Income Tax remains in effect on passive income
QBI Deduction Made Permanent
The 20% deduction for pass-through businesses (S Corps, partnerships, sole proprietors) is now permanent
Helps bring pass-through income in closer range to the 21% C corporation rate
Bonus Depreciation Restored to 100%
Businesses can now fully expense qualifying new and used property starting with property acquired after 1/19/25
Applies to personal property (trucks, trailers, equipment—also known as 1245 assets)
Real estate bonus depreciation may be available through cost segregation studies
Section 179 Expensing Limit Increased
Section 179 expense limit increased to $2.5 million
Phase-out begins at $4 million of assets purchased
Can be used in tandem with bonus depreciation for strategic asset purchases
Estate and Gift Tax Exemption Increased
Estates up to $15 million per person or $30 million per couple are exempt from the 40% estate tax (effective 1/1/26 and inflation adjusted yearly after that)
Step-up in basis at death remains in effect, allowing assets to be revalued at fair market value
SALT Deduction: Expanded and Extended
Pass-through entity (PET) tax workaround remains in place
Personal SALT deduction raised to $40,000 through 2029 (this higher amount is subject to phase out for higher earners, but will still be allowed $10,000 at minimum)
Taxpayers will need to decide whether to file via the PET structure or itemize and take the expanded deduction
Business and Personal Deductions: A Closer Look
Here are several new or expanded deductions available under the OBBA:
Car loan interest on NEW personal use U.S.-made vehicles is deductible up to $10,000 (above-the-line), with phaseouts starting at $200,000 MAGI for joint returns. This deduction will be allowed for tax years 2025-2028.
Federal Tax credits on electric vehicles will end effective 9/30/2025.
Charitable deductions up to $2,000 for a joint couple are allowed above the line.
Trump Accounts are a new concept. Newborns born 2025 through 2028 receive a $1,000 federal deposit, with parents allowed to contribute $5,000 and employers $2,500—assumed to be tax deductible, pending guidance.
Overtime pay (with limits) is now exempt from federal tax but still subject to Social Security and state taxes. Preliminary exemption applies to the first $25,000 for joint filers under $300,000. There is based on the excess over the regular rate of pay, not the full overtime amount.
Tips are also exempted on the first $25,000 earned, for joint filers with income capped at $300,000.
The much-discussed Social Security tax exemption was limited. A $6,000 exemption per eligible individual (65 or older) will apply through 2028, for joint filers with income ranging from $33,200 to $150,000.
Business Interest Limitation Returns
Businesses must now add back depreciation when calculating their allowable interest deduction
This affects highly financed companies, especially in trucking or construction
Gambling Loss Rule
The OBBA limits the deduction for gambling losses starting in 2026. Taxpayers will only be able to deduct up to 90% of their gambling winnings, down from the full 100% allowed under prior law. This affects anyone who reports gambling income—from slots and lotteries to sports betting. For example, a taxpayer who wins $100,000 and loses $500,000 will only be able to deduct $90,000, leaving $10,000 in taxable income despite an overall loss. The 100% deduction remains in effect through the 2025 tax year. This change is permanent as written, though industry pressure could lead to revisions.
Bell & Company’s Take
Bell and Company will be providing future advice and information throughout the remainder of the 2025 year as the OBBA seasons and IRS guidelines are so provided.
Interesting items to note: Almost all temporary tax law changes have varying implementation dates, sunset dates, deduction limits, and income thresholds—so be cautious when applying what you read to your specific tax situation.
The overtime pay and tip exemptions are expected to apply for all of 2025. The tax ‘savings’ will be calculated on the individuals return. This will likely required employers to have to keep up with and report additional information that they previously have not had not to. Expect updates to IRS reporting, including revised W-2 forms, which may create some complexities in Q3, Q4, and year-end payroll reporting.
We’re Here to Help You Navigate What Comes Next
These changes bring opportunity—but also complexity. Whether you're planning equipment purchases, re-evaluating your estate plan, or just trying to understand what the new law means for your next W-2, our team is ready to help.
Final Thoughts from Bell & Company
The “One Big Beautiful Bill Act” brings major planning opportunities for business owners, trucking companies, and individuals across income levels. But some provisions include income limits, phaseouts, or strategic choices—especially around state tax deductions, equipment expensing, and wage income treatment.
As IRS guidance continues to roll out, we’ll keep you informed. In the meantime:
Let’s talk.
We can help evaluate how the OBBA applies to your unique situation—whether you’re running a fleet, filing as a sole proprietor, or planning your estate.
Stay up to date:
We’ll continue sharing updates and planning tools as more details are released.
For the IRS’s plain-language summary, visit:
irs.gov/newsroom/one-big-beautiful-bill-act-tax-deductions-for-working-americans-and-seniors