THE BIG, BEAUTIFUL TAX BILL: WHAT IT MEANS FOR YOU AND YOUR DEDUCTIONS
- Heath Vo
- Jul 20
- 2 min read
Move over, standard deduction. There's a new sheriff in town—and it brought a suitcase full of write-offs.
In a year already full of economic curveballs, Congress just dropped what some are calling “The Big, Beautiful Tax Bill”—a sweeping piece of legislation promising relief, reform, and (of course) enough loopholes to keep accountants up past midnight. And while the name might be a little grandiose, the bill does come with some potentially juicy new deductions that could make a real difference for taxpayers, small business owners, and aspiring real estate moguls alike.
Let’s unpack what’s inside.
Expanded Standard Deduction
The standard deduction just got juiced. For tax year 2025, the deduction is increased by:
$2,500 for single filers
$4,000 for heads of household
$5,000 for married couples filing jointly
Why? Congress says it's to "combat inflation." We say it's to keep you quiet while they gut something else. Either way, take the W and adjust your withholdings.
Homeowner GOLD RUSH!
First-time homebuyer? You might be eligible for a $12,000 refundable tax credit.Own rental property? There’s a bonus depreciation kicker back on the table, allowing 100% expensing for qualified improvements through 2026.And yes, mortgage interest deductions are uncapped again (up to $1.25 million in mortgage debt)—because apparently, we’re pretending 2005 is back.
Medical Deductions Made Easier (because you may not have healthcare)
The floor for medical expense deductions has been permanently reduced from 7.5% to 5% of AGI.Translation: if you had a rough year medically (or just pay ridiculous premiums), you may finally see a break on your 1040.
Small Business & Side Hustle Love
This bill is basically love poetry for S-corps, LLCs, and Etsy side hustlers:
Section 179 limits doubled to $2.5 million
Expanded qualified business income (QBI) deduction thresholds
A new startup credit worth up to $15,000 for first-year business expenses
And a fun twist: a 25% tax credit for cybersecurity investments (because your nephew’s hacked Shopify site doesn’t secure itself)
Green Incentives
EV credits are back in full swing with no income phaseout and no North America assembly requirement (hello, Teslas made in Germany).Solar credits now cover batteries, and there’s even a new credit for energy-efficient home appliances—finally a tax write-off for that fancy air fryer you never use.
Red Flags (Because it's still Congress)
The SALT cap is still alive and kicking, but only for blue states
The earned income tax credit (EITC) has been narrowed—expect stricter eligibility
And the IRS got another $10 billion for enforcement, but don’t worry—it’ll take them 5
years to staff it (if ever)
TL;DR the Big Beautiful Tax Bill?
The Big Beautiful Tax Bill is exactly what you’d expect:
✔️ Some headline-friendly goodies
✔️ A handful of game-changing deductions
✔️ A fair amount of political chest-thumping
✔️ And buried complexity that makes hiring a good tax pro more important than ever
Which, hey—works out great for us.
Don't Come Late to the Supper Plate
If you want to make the most of the new deductions, contact ExFed Tax. We’re not just another tax shop—we’re a team of real former IRS pros who know exactly how to navigate the beast from the inside. We'll help you legally lower your tax bill and stay audit-proof.
Uncle Sam may not love you—but one of his exes does.
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