Wealthy Way Tax-Free Overtime and Bonus Depreciation
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Sep 16, 2025 Explore the game-changing tax changes, including tax-free overtime and 100% bonus depreciation, making it easier for businesses to maximize deductions. Discover how to leverage vehicle purchases like the Tesla Model X for significant tax benefits. Learn strategic tax deductions through real estate investments, focusing on rental properties for both cash flow and tax efficiency. Dive into the importance of balancing these investments with business income to foster sustainable wealth growth!
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Tipped Income Deduction Introduced
- The Big Beautiful Bill added a new tipped-income deduction rather than eliminating tip taxes entirely.
- Workers can deduct up to $25,000 of tipped income if single under $150k or married filing jointly under $300k.
Report Tips To Claim The Deduction
- Report all tipped income on your federal return to qualify for the deduction.
- Deduct up to $25,000 in tips and up to $12,500 in overtime if you meet the AGI thresholds.
Tax-Free Overtime Up To Threshold
- The law allows overtime pay to be deductible up to $12,500 for qualifying taxpayers.
- Deduction phases apply at the same AGI thresholds as the tipped-income deduction.