CULLMAN, Ala. – The Cullman Area Chamber of Commerce recently hosted a Lunch & Learn focused on the “One Big Beautiful Bill Act,” signed into law last July. The session was titled, “From Legislation to Strategy: Understanding the OBBBA and Your Taxes.”
Guest speaker Zack Bennett, CPA, PFS, from Kassouf Wealth Advisors, provided an overview and explained how the changes affect individuals and businesses. Bennett is the director in Kassouf’s Healthcare Tax and Advisory Group.
Bennett noted that many provisions from the 2017 Tax Cuts and Jobs Act were set to expire at the end of 2025. According to him, the new legislation makes several of those tax rates permanent and introduces additional updates.
On the individual side, he highlighted continued lower income tax rates, an increased standard deduction and a new $6,000 deduction for seniors age 65 and older, subject to income limits.
Other changes, he said, include:
- Raising the state and local tax (SALT) deduction cap from $10,000 to $40,000
- Allowing up to $10,000 in auto loan interest deductions for certain new U.S.-assembled vehicles
- Deductions for up to $25,000 in qualified tip income
- Deductions for up to $12,500 in overtime pay ($25,000 for joint filers)
- An increased child tax credit of $2,200 per qualifying child
Several provisions include income-based phase-outs.
For businesses, Bennett said the 20% qualified business income deduction was extended, and 100% bonus depreciation was restored, allowing companies to immediately deduct qualifying equipment purchases. Section 179 expensing limits were also increased. He also shared tax planning strategies, including qualified charitable distributions from IRAs, Roth conversions, short-term rental strategies and cost segregation studies to accelerate depreciation.
Bennett encouraged people to evaluate how the changes apply to their individual situations and businesses, emphasizing that proactive planning can maximize available benefits.
