21 Hats Podcast Dashboard: Is the GOP Tax Bill Good for Business?
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Jun 9, 2025 Gene Marks, a CPA and prolific writer for outlets like Forbes and The Guardian, shares his insights on the GOP tax bill's implications for small businesses. He discusses the potential benefits, including enhanced pass-through and first-year capital deductions. However, he warns about the hidden challenges it poses, particularly for nonprofits and service industries. Marks argues that while there are advantages, the bill could lead to significant long-term issues for entrepreneurs, especially in light of rising national debt and interest rates.
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Pass-Through Deduction Boost
- The GOP tax bill increases the pass-through deduction to 23%, making it permanent and expanding eligibility.
- This benefits many small businesses, especially those structured as pass-through entities like S corporations and LLCs.
Maximize Equipment Deductions
- Take advantage of the full 100% bonus depreciation deduction available for first-year capital equipment purchases.
- Remember the asset must be put into service to qualify for immediate expensing benefits.
Use R&D Expense Deduction
- Track research and development expenses carefully to qualify for immediate 100% deduction in the first year.
- Use this provision to reduce taxable income significantly for costs related to new product or service development.