July 21, 2025 • 43 mins
TaxTalk4U One Big Beautiful Bill Business Provisions President Trump Singed the OBBBA on July 4th 2025. Breaking Down The “One Big Beautiful Bill Act”: Impact Of New Laws On Tax Planning. Qualified Business Deduction (Section 199A): Bonus Depreciation Section 179 Expensing, Limits Charitable Deductions, increase in threshold for information report 1099K, 1900-NEC, 1099-Misc, Sunsetting of business green energy tax incentives. Trucking & Taxes, Tax Relief Taxation Solutions
Tax Talk 4 U is broadcast live Mondays at 10AM ET and Music on W4CY Radio (www.w4cy.com) part of Talk 4 Radio (www.talk4radio.com) on the Talk 4 Media Network (www.talk4media.com). Tax Talk 4 U is viewed on Talk 4 TV (www.talk4tv.com).
Tax Talk 4 U Podcast is also available on Talk 4 Media (www.talk4media.com), Talk 4 Podcasting (www.talk4podcasting.com), iHeartRadio, Amazon Music, Pandora, Spotify, Audible, and over 100 other podcast outlets.
Become a supporter of this podcast: https://www.spreaker.com/podcast/tax-talk-4-u--6333550/support.
Tax Talk 4 U is broadcast live Mondays at 10AM ET and Music on W4CY Radio (www.w4cy.com) part of Talk 4 Radio (www.talk4radio.com) on the Talk 4 Media Network (www.talk4media.com). Tax Talk 4 U is viewed on Talk 4 TV (www.talk4tv.com).
Tax Talk 4 U Podcast is also available on Talk 4 Media (www.talk4media.com), Talk 4 Podcasting (www.talk4podcasting.com), iHeartRadio, Amazon Music, Pandora, Spotify, Audible, and over 100 other podcast outlets.
Become a supporter of this podcast: https://www.spreaker.com/podcast/tax-talk-4-u--6333550/support.
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
The topics and opinions express in the following show are
solely those of the hosts and their guests and not
those of W FOURCY Radio. It's employees are affiliates. We
make no recommendations or endorsements for radio show programs, services,
or products mentioned on air or on our web. No
liability explicitor implies shall be extended to W FOURCY Radio
or its employees are affiliates. Any questions or comments should
be directed to those show hosts. Thank you for choosing
(00:21):
W FOURCY Radio.
Speaker 2 (00:27):
Barry G.
Speaker 3 (00:28):
Fowler EA brings you tax talk for you right here
on W four CY Radio and Talk for TV. As
an enrolled agent and a national leader in tax resolution
as well as Trucker bookkeeping and tax planning. With over
thirty years of experience, Barry will break down taxes, bookkeeping,
(00:49):
tax planning, and tax relief for individuals and businesses just
like you. So let's have some tax talk for you
with your host, Barry G.
Speaker 4 (00:59):
Foul Hey, welcome man, good morning, It's another great week,
and wait, what a way to start off talking taxes
on a Monday morning. You know, we have a lot
of fun. We enjoy what we do when the new
tax laws come out, we get a lot of good
rest because you know, we have to go through and
(01:21):
read those tax bills to know what's in them so
that we can talk about them here, you know, with
you and get the information out, you know, to you
our listeners and to our clients. And uh, you know,
last week was a great week here at Trucker Tax
Tools tax Talk for you. We've got a bunch of
(01:43):
new trucking clients. So if you're a trucker looking for
great bookkeeping service at a reasonable price, call us at
eight seven seven nine nine six two four seven seven,
or go over to Trucker tax Tools dot com again.
That number is eight seven seven nine ninety six two
four seven seven. Hey, we're talking to one big, beautiful bill.
(02:07):
Nine hundred roughly pages of a bill passed by Congress
signed into law by President Trump on July fourth. It
stends and expands many provisions of the twenty seventeen Tax
Cuts and Jobs Act TCJA, and it's helped aiming to
(02:33):
spur growth and reduce compliance burdens. Now I'm not sure
about the compliance burdens because it's adding a lot of
new twists and turns deductions that have limitations, so you know,
in my opinion, yes, it should help to spur growth
(02:54):
keep more money in people's pockets with some of the
things that's done on the personal side. Today we're going
to talk business and what provisions the one big beautiful
bill as for businesses, and the first one is bonus depreciation.
(03:14):
So everybody you know talks about depreciation and what we
can do with depreciation, whether Section one seventy nine or
bonus depreciation. What this bill does is full expensing has
become a permanent feature of this tax code. Specifically, Section
one sixty eight K one A has been amended to
(03:37):
replace the previously phased down percentage with a flat one
hundred percent, thereby putting in place permanently the ability to
fully expense qualified property. It's permanent until they come in
and change the code. Again. You have to like that
(03:58):
because you know, you never know what you're going to
get when you get these things. And it says it's permanent,
but again, if Congress passes a new law and changes
the law, it's not permanent. It's not like it needs
a constitutional amendment. It just needs Congress to come in
and pass a law that changes you know what they've
(04:21):
done is they've gone in and replaced the old rule,
put the new rule in to make sure that you
have this permanent expensing. Under the current law, Section one
sixty eight K of the Internal Revenue Code provided for
bonus appreciation allow taxpayers to immediately expense abortion of the
(04:42):
cost of qualifying profit property in the year's plash and service. However,
that percentage was scheduled to phase down after twenty twenty two,
from one hundred percent to eighty percent to sixty percent
to forty percent to twenty percent before fully sunsetting in
twenty twenty six. So this is amended that, and we've
(05:03):
got now the one hundred percent bonus depreciation. Now, nothing
in the legislature permits taxpayers to amend twenty three or
twenty four to revise bonus pre depreciation previously allowed at
eighty and sixty percent. Additionally, that one hundred percent bonus
appreciation that you get to expense under the new provision
(05:26):
does not apply to property placed in service or acquired
prior to the enactment date January nineteenth, twenty twenty five.
Property acquired before that date remains subject to the TCJA
phase down rules. Talk about complications. But when did you
(05:47):
buy the property that you're fixing to put in and
want to get depreciated? Now does it mean by or
does it mean placed in service. We've still got to
get some interpretations from the IRS to me make sure, hey,
which date is the applicable date because it's a lot
of times you if you're looking at buying a piece
(06:07):
of equipment at the end of the year, you may
have bought it in December, but you didn't place it
in service until the end of January when you actually
received that contract, that equipment and that property. So you
got to take a look at this and you've got
to interpret the laws. Now, got to understand they said
this was going to make the law less complicated, right wrong.
(06:31):
Got to be looking at those dates. So make sure
you got that effective date. New property acquired after January nineteenth,
twenty twenty five, So you need to make sure you're
looking at your dates. There's a special provision for special
(06:52):
depreciation allowance for qualified production property. A new provision under
Section one sixty eight allows one hundred percent bonus depreciation
for certain qualified non residential real property used in qualified
specific production related activities. See complications in this bill as
(07:15):
they go, So traditional one point sixty eight K bonus
depreciation applies mainly to personal property. This effective rule expands
full expensing to specific real estate investments that support manufacturing
and refining. I just remember land is not a depreciable asset.
(07:35):
The building on the land is. So when you're going
through and calculating and depreciation, you need to and especially
on a building and land, you need to know what
the value of the land is in the purchase so
that you can get your depreciation correct. So there's a
lot of important things in this when you're looking at depreciation,
(07:57):
and you've got to remember some key requirements. To qualify,
the real property must be non residential real property used
as an integral part of your qualified production activity. Be
placed in service in the US or a US possession.
See they're promoting growth here in the US. Have original
(08:20):
use beginning with the taxpayer. So it's got to be new,
be constructed between January twenty and twenty twenty five and
December thirty one, twenty twenty eight, be placed in service
by December thirty one, twenty thirty be designated as qualified
production property through election on the tax return. So you've
got to make this election fun fun fun. Nobody ever
(08:47):
said that Congress isn't full of a bunch of people
with hot air. You can do that when you read
this bill and knowing that there's how many pages in it,
you know there's a lot of carve ads and a
lot of crazy things that they do in this bill.
As a matter of fact, when you're reading this bill,
there are certain sections that you read and you interpret
(09:07):
based on what you're reading there. And I'll give you
the example, no tax on cash tips. But then later
on they clarify what cash tips are and it's not
just cash, it's basically any tips that do come in.
So there was some other interpretations you've got to put
(09:28):
into into this bill. When you are looking at this bill,
so you're going to want to talk to your tax
preparer and make sure that you can actually expense everything
here based on the qualified property. Make sure you're taking
the right amount of deduction, you're not taking too much deduction,
(09:52):
and make sure that the way it's going to be
done actually benefits you or business, because sometimes you're using
too much depreciation and you're really only offsetting smaller amounts
of income and you don't need to do the full
bonus depreciation on the piece of equipment that you have,
(10:16):
because you're already into a much lower rate and using
that depreciation. Bonus depreciation at a low rate doesn't save
you as much money as possibly depreciating it over the
life of the of the asset. Asset useful life of
the asset, and you'll get better use of your depreciation
(10:40):
to down. We're going to talk about Section one seventy
nine depreciation right after this quick break.
Speaker 3 (10:47):
We have only scratched the surface of today's show. Please
stand by as Barry che Bower will be right back
with tax talk for you. If you owe the IO
or are going through an IRS audit, don't go at
it alone. Call Taxation Solutions Tax Relief at eight eight
(11:08):
eight nine three zero one zero one six. We are
your solution for IRS debts, audits, back taxes, garnishments, leans
and levees. Whether you're an individual or business, you need
a solution and a strong aggressive tax resolution. Don't let
(11:28):
the IRS walk all over you. Stop the IRS now.
Call eight eight eight nine three zero one zero one
six or go to Taxationsolutions dot net now for a
free no obligation consultation let's get back to tax stock
(11:48):
for you with more tax stock once again.
Speaker 2 (11:52):
Here's your host, Barry G. Fowler.
Speaker 4 (11:57):
Hey, welcome back. Section one seventy nine has heard that
term before you know. It allows you to expense the
asset that you bought if it doesn't fit under bonus
appreciation or maybe you just need to use a portion
of it. Section sevent nine has increased, so the increased
(12:17):
limits provides greater flexibility the larger first year deduction for
business investing in capital assets. So what they've done is
a mended Section one seventy nine B one to increase
the maximum deduction from one million to two point five billion. Simultaneously,
Section one seventy nine B two increase the phase out
(12:40):
threshold from two point five million to four million. These
adjustments are drastically dramatically raising the ceiling at which small
and mid sized businesses can fully expense the quality cost
of your qualified property property. Now, once you get above
these limits, your deduction is reduced dollar far dollar by
(13:05):
dollar for the amount of qualifying property placed in service
that exceeds the four million threshold. Once the total cost
of eligible property placed in services ex seeds six point
five million, the entire Section one seventy nine is phased out,
so you still got the complications out there. They're going
to also add in new inflation adjustment rules for Section
(13:27):
one seventy nine, so they've changed that so it'll be
indexed for inflation future as well. So these are not
going to be static numbers. They're assuming more midside sized
businesses are going to qualify for expensing under Section one
seventy nine, and then you need to monitor inflation adjustments
(13:52):
every year just to make sure that you know they're
qualifying how much you can actually expense. That's something interesting.
We talk to businesses, and a lot of our businesses
we talk to our LLC's multi member or even single
member so reporting as a sole proprietorship or they are escorts,
(14:12):
and you do business charitable contributions, and your business charitable
contributions pass through to your personal return and if you
are itemizing, you get to take it on schedule A. Now,
if you are a c court, you're reporting on eleven twenty.
This bill is going to introduce the significant change to
(14:35):
the rules governing corporate charitable deductions by putting in a
one percent floor for deducting charitable contributions. So they amended
Section one seventy B two A as if everybody really
wants to go through and read the IRS Code. But
if you do, it's section one seventy B to a corporates.
(14:59):
Corporates deduction for charitable contributions is in a taxable year
will only be allowed to the extent that the contribution
exceeds the one percent of the corporate's taxable income, and
it also remains capped at ten percent of taxable income
as it is in current law. So this means if
(15:22):
you're running a corporation and you're reporting on eleven twenty,
you're not going to receive any tax benefit for the
first one percent of taxable income donated to a charity,
or if you give more than ten percent, you're going
to be limited to the ten percent. Andy Sometimes we
tell people, you know, especially when you are in business,
(15:46):
sometimes it's better to use your charitable contributions to do marketing,
you know, pay them to put your banners and stuff up.
Have the marketing section of it, so it is fully
deductible in not having to face the charities. So if
you're running an escort, you're running a partnership, you're running
a multi member LLC tax as a partnership or as
(16:09):
a single member tax as a sole proprietor. Marketing sometimes
is better deduction for you than the charitable contributions because
you have to get over the standard deduction. If you
don't get over the standard deduction, then it has done
you no good. So if you're contributing from your business,
maybe you want to look at ways of using that
(16:31):
charity to provide you with more marketing as opposed to
giving charitable contribution. Now, the IRS did put in carry
forward rules. The treatment of disallowed contributions is adjusted to
reflect the new floor. Contributions exceeding the ten percent cap
can still be carried forward for five years. However, the
(16:54):
new caveat only contributions disallowed due to exceeding the ten
percent cap will be eligible for the fully carry forward.
If a contribution is disallowed solo to not exceeding the
one percent floor, it can be only carry forward if
the ten percent limit was also exceeded in that year. Okay,
and then they have BIFO rules. First in first out
(17:17):
contributions be treated as used in the order they were made.
First in first out BIFO fun things in life taxes.
That's why we do taxes. We enjoy doing this. This
is not effective until after December thirty one, twenty twenty five,
so this will become effective in twenty twenty six. You know,
(17:42):
if if you are court running as a corporation and
you're making consistent charitable contributions near or below the one
percent threshold, you're losing the deductibility of that, and it
does take away some of the incentive for charitable giving.
Sometimes you got to look at this in a different light.
Maybe look at it that you want to spend it
(18:03):
more as marketing. So little tidbits out there you can
really kind of look at how you want to do
your charitable contributions. Is it going to exceed the one
percent floor? Is it going to exceed the ten percent?
So maybe you want to limit what you're what you're giving.
(18:24):
So those are things to keep in mind and when
you're doing tax planning and planning for the future, how
you're going to save money for your business, where you
want to spend spend the money, and how you want
to spend the money as well. Now, this one big
beautiful bill, I guess they call it the o BBB
(18:44):
A one Big Beautiful Bill Act did repeal revision of
the diminished rules for third party network transactions. So what
is that, Well, a lot of that is your ten
ninety nine K reporting, So you know, it gets got
really complicated. And we've seen people that have received ten
(19:08):
ninety nine k's, you know through maybe Zemo paypath, maybe
not really doing or being in business, but using it
to transfer money between family members. Maybe like I went
and bought a Mother's Day gift for my mom from
me and my sisters, and then people reimburse me or
(19:33):
my sisters. One of my sisters bought Christmas gifts for
my mom and we all reimburse her. And you know,
there may be other things that have happened that you
get reimbursed. You pay for something and somebody reimburses you,
and then the reporting company gives you the ten ninety
(19:53):
ninety K. Well, these rules needed to be modified, and
it's not going to prove that if your transactions are
still over the limit. But it amended section sixty fifty,
we they're only going to be required to issue ten
ninety nine K if both conditions are met the total
(20:17):
payments to a paye exceed twenty thousand and the number
of transactions surpassed two hundred within a calendar year. So
I hope you know there's not twenty thousand moving back
and forth between family members now, I will be This
would kind of be funny because my sister would have
passed the twenty thousand when she bought a vehicle from
(20:39):
my mom when she was xelling them, but she wouldn't
have surpassed the two hundred transactions within a year. Us
are kids and somebody else are transferring a lot of
money back and forth, you know, you know, so these
are the things that really helped. Now, if you're object
(21:00):
to back up with holdings, you know, you've got to
be concerned because they may still take the backup with
holdings from this as well. So that's kind of, you know,
some good things there. So you know, if you receive
fifty payments totaling five thousand through some kind of craft
selling platform, or you were selling eggs because she had
(21:25):
fewer than because you have fewer than two hundred transactions
in less than twenty thousand, the platform is not going
to give you a ten ninety k. Now if you're reporting,
you know you're selling eggs and you have a thousand
transactions at you know, five dollars each. You know that's
only five thousand. There's still going to be no reporting
(21:46):
on that because you didn't break both thresholds. But if
you're doing some free atlance work, consulting work, or something else,
and you've received two hundred and fifty payments in the
total twenty five thousand, you're going to get a ten
ninety nine. Okay, So you've got to be aware of
that and know that you're going to have to make
sure that you're reporting.
Speaker 2 (22:06):
Yeah.
Speaker 4 (22:06):
The one thing about that is if you're in a
consulting business, you're running a business. Whether they give you
the ten nun and nine k or not, you still
should be reporting all your income as well. Hey, when
we come back, where you continue talking about this one big,
beautiful bill and what else it has for your businesses
and how it'll impact we're right back.
Speaker 3 (22:30):
We have only scratched the surface of today's show. Please
stand by as Barry Gie Fowler will be right back with.
Speaker 2 (22:38):
Tax talk for you.
Speaker 3 (22:42):
As an owner operator, you already spend too much time
away from your family. Trucker Tax Tools handles all your
bookkeeping in taxes, no matter what level Trucker you are.
Life on the road can be taxing, but that doesn't
mean that your wallet or time with your family should suffer.
Tax Tools makes your life run smoothly. Go to Trucker
(23:04):
tax Tools dot com for a free guide that will
give you the tools to never worry about your taxes again.
Call Trucker Tax Tools eight seven seven nine sixty six
two four seven seven or go to Trucker tax Tools
dot com now and let.
Speaker 2 (23:21):
The experts keep you trucking.
Speaker 3 (23:26):
Let's get back to tax stock for you with more
tax stock once again.
Speaker 2 (23:31):
Here's your host, Barry g. Fello.
Speaker 4 (23:36):
Hey, welcome back. You know, we're talking about different things
that effect businesses, and one thing that business has always
got to do is send out UH ten ninety nine
miscellaneous or ten ninety nine NEC ten ninety nine none
employee compensation. But starting in twenty twenty six, the threshold
(23:57):
for information reporting under a Revenue Code Section six zero
four to one A is actually increasing. It's going from
the six hundred dollars that we've been at that did
an index for inflation to two thousand dollars. This change
means businesses will only need to file information returns such
(24:18):
as ten ninety nine NEC or ten SELLANEUS if your
total payments to a recipient in a calendar year exceeds
two thousand dollars. Now, starting in twenty twenty seven, that
two thousand is going to be adjusted annually for inflation adjustment,
(24:39):
but based on the cost of living formula under section
one f three in calendar year twenty twenty five as
the base, and the amount is going to be rounded
to the nearest one hundred dollars increment. So what I
see is it's going to be two thousand, and then
it's going to be twenty one hundred and twenty two hundred.
So you know we're going to be hit two thousand
(25:01):
being the amount for twenty twenty six. You're still going
to be reporting at the six hundred dollars level twenty five.
Don't jump to the conclusion that you don't have to
do the ten ninety nins. If you're under two thousand,
it's still a six hundred for twenty twenty five. So
(25:21):
you know, you make sure that if you do work
with independent contractors, and I tell people this all the time,
the first time somebody works for you, get that W
nine before you have to issue the payment, because I'm
going to tell you it's harder to get a W
nine from somebody after they finished doing work for you.
But if you get it on the very first time,
(25:43):
you've already set the standard that hey, I'm going to
issue you at ten ninety nine. Is I am not
going to be responsible for the taxes on your contract
labor if I was to get audited. So if I've
issued the ten ninety nine and it puts the burden
back on you, and I'm not the one going to
(26:04):
be left holding back. So keep those things in mind
when you first hire somebody as a contractor and get
them to sign, you know, your contract, get them to
sign and file the W nine with US. Verify that
they are legally here, so you're not held accountable either.
(26:25):
You know, you don't want to be doing work for
somebody that is here illegally using illegal Social Security number
that isn't valid or is somebody else's. It's just going
to get you in trouble. It's going to get you
when you do file your W nine ten ninety nine,
when they get kicked back, you're the one that's going
(26:46):
to be responsible for trying to find that person and
get the correct solid Security number, which I'm sure they've
already disappeared. So you want to make sure that you're
keeping track of it, keeping the INFRA nation so that
you know you have good records. So you've got to
(27:07):
make sure you're doing that, don't You can't also count
on Venmozelle whoever you're using to pay these contractors or
gig workers or whatever. They're not getting the ks, so
you got to be making sure you're giving the tens there.
(27:27):
So again, remember reporting threshold under the current law is
six hundred dollars. Starting next year it will be two thousand,
and then index for inflation. Under the current law, we
had no indexing. New law will be indexed after twenty
twenty six. If you're paying for services, the six hundred
dollars threshold applies this year. Starting in twenty twenty six,
(27:51):
the new threshold applies. So keep those things in mind. Now,
this one big, beautiful bill did the things for qualified
business income and it's called the qb I. Now that
was part of Trump's tax law back in twenty seventeen.
They did do some enhancements to that bill. Hey, I'm
(28:13):
going to ask answer a quick question here. What's the
difference between the ten ninety nine K and ten ninety
nine NEC and the ten ninety nine miscellanea. So the
ten ninety nine K is coming from a merchant service provider.
If you're accepting credit cards, taking Venmo, taken Zell, they're
going to issue the ten ninety nine case NEC is
(28:36):
somebody that's a non employee. So you know, if you've
got somebody that's working for you, there's a contractor, you're
going to issue the ten ninety nine an EC. Miscellaneous
has several different categories. It could be royalties, it could
be rents. So what you've got to do is look
at the forum ten ninety nine and you can see
the different things that if you've paid for, how you're
(28:58):
going to have to report it. So if if you're
a business and you're paying rent to individual, you're going
to issue them a ten sellaneous rents out there maybe
to do it for LLCs. It just depends on the
qualifications that you have out there as well. All right,
(29:19):
I know everybody's been, you know, thinking about this and
talking about this is Qualified Business Income Deduction QBI. It
expanded and phased in thresholds for income based limitations they
threw in a few more complications and where it can
(29:41):
phase in. It added some guaranteed minimum deductions for active businesses.
And guess what. Because it's in depth, it's long discussion.
We're going to take a short break and then we're
going to jump right in to QBI right after this.
Speaker 3 (29:58):
We have only scratched a serp us of today's show.
Please stand by as Barry G. Fowler will be right
back with tax talk for you. As an owner operator,
you already spend too much time away from your family.
Stop spending time doing paperwork. Go to Trucker tax tools
(30:18):
dot com, a solution built specifically for truckers. Trucker tax
tools dot Com makes your life run smoothly. Let's get
back to tax stock for you with more tax stock
once again, here's your host, Barry G.
Speaker 2 (30:36):
Fowler.
Speaker 4 (30:39):
Hey, qb I QBI Qualified Business Income Deduction Section one A.
This changes are going to take effect and tax your
twenty twenty six, not twenty twenty five, but expanded phase
in threshold for income based limitations. The amendment increases the
(31:02):
phase in ranges for the W two wage and qualified
property requirement limitations for single filers. The phase in window
expands from fifty to seventy five thousand for joint filers
one hundred to one hundred and fifty thousand. This adjustment
means basically more taxpayers are going to be able to
(31:23):
take full advantage of the QBI deduction before encountering any
income based restrictions. Now, it did also throw in a
guaranteed minimum deduction for active businesses. If you're not active,
you wouldn't qualify anyway, would it? Don't know, That's just
(31:43):
the way it is. A new provision in the Section
one ninety nine a I. Section I introduces a minimum
QBI of four hundred dollars for qualifying taxpayers. To be eligible,
you the tax must have at least one thousand dollars
in qualified business income from an active business they you
(32:07):
are materially participating in as defined by Section four sixty
nine H. The minimum deduction is going to ensure as
small actively managed businesses received meanionful QBI, even when calculated
at the twenty percent would otherwise be negligible amount. So
(32:31):
they're giving you a lot of four one hundred dollars
on a on you have a minimum one thousand dollars
of income beginning in twenty twenty seven, that minimum deduction
and the thousand QBI floor will be adjusted annually for
inflation and then rounded to the nearest five dollars at
(32:52):
one hundred five dollars. So you know it, QBI has been,
you know, pretty good as giving small businesses a leg up,
giving small businesses who do make money depending on the
phase in and how they're paying people assets. Uh, you know,
(33:14):
a twenty percent right off on that income. It's it's
been really really good for people. So, you know, for
the way this bill worked, if you were a consultant
with QB, I have one hundred and twenty thousand, small
businessman with QBI have a one hundred qualified business income
(33:37):
of one hundred and twenty thousand. If you were single
and QBI was one hundred and twenty tax income one
thirty five, you would have a phase in below the
one thirty five to around one seventy. Under the new law,
phase in doesn't start for single taxpayer until one hundred
(33:59):
and ninety three thousand is fully phased in at two
hundred and forty seven. Therefore, under the new law, you
would actually get twenty percent of one hundred and twenty
thousand who's a twenty four thousand dollars deductible Really nice.
So you know, at one hundred and thirty five thousand
you were below the plan. You still get to twenty
(34:20):
four thousand because your threshold would start around one seventy five.
So yeah, little things to keep in mind that are
out there. Uh, if you're married, finally joint your phasing
ends around four hundred and eighty three thousand. Now, you know,
there's a lot of other problems in this bill. There's
(34:40):
a lot of other things that have been issues with QBI,
but those issues didn't get one hundred percent straightened out here.
I really wish they would have just applied this to
all kinds of businesses across the board. But that being said,
not everything works the way you or I want it,
(35:04):
you know, and there are certain politicians that basically feel
that they want you to say how much would I
make send it in, and then we'll give you money
back that we think you should should have. You know,
I can't stand those politicians. I can't stand the couple
politicians that try to make these bills more complicated than
they really need to be. Now, if you're into green energy,
(35:26):
hey great, you can be in the green entergy. I've
always felt that if you're going to support any industries
or anything else out there, it shouldn't be government supported.
If you need government support to help you maintain or
establish your entity and your business, do it through loans,
make you repay it through tash credits to lower the
(35:50):
cost of your your vehicle, or the cost of solar
or the cost of you know, electric, whatever it may be.
You know the businesses, and we hear a lot of
people say tax business, tax businesses. Well, if we're taxing businesses,
it should be every business the same way. So Sun
setting a business green energy tax and centives, to my opinion,
(36:13):
is great. I wish you would have just said, bam,
take them out, they're done. But it didn't do that.
So they're ending clean vehicle credits. They're ending the previously
owned vehicle Clean vehicle credits September thirtieth, twenty twenty five.
Qualified commercial vehicles credits September thirty, twenty twenty five. So
(36:37):
if you're looking for clean energy credits, get out there
and get the car now before they go away after
December thirty one, twenty twenty five. Clean Electricity Production credits,
clean electricity investment credit is going away. Clean hydrogen production
credits are going to be going away with some restrictions,
(37:00):
So they are sunsetting these laws. If an industry can't
support itself, again, is it a viable business? Is it
a viable structure for this business. I know we want
clean energy, I know we want clean cars, and I
(37:21):
know you've got to regulate. But again that burden should
be on the development and business that is doing it
and the people that are buying the products, not in
the backs of every single American taxpayer. You know, taxes
isn't for the redistribution of wealth. Taxes is to support
(37:42):
the government and their primary functions. And if you want
to know what the primary function of the federal government is,
wead the Constitution. You can see what's laid out in
that Constitution what the role of our federal government is.
It's not what they make it to be. Is developed
into what they've made it to be. If you want
(38:03):
to know when taxing started, it surely didn't start with
the very first constitution. Taxing the American people started back
in like nineteen thirteen. And if you want to know
more about the tax code, then you're a trucker. Come
to the Truck for Success that o IDA puts on.
I talk a lot about tax code, where we started,
(38:23):
where we're going, and what our future is going to be,
and how you can save money on your taxes as
a trucker as a business owner. So go to Trucks
for Success. Go to IDA and look up truck for Success.
Come to this great seminar that we put on for truckers.
It's at the end of October. It's up in Blue Springs, Missouri.
(38:45):
Love to see you up there. I'll be up there.
You should be up there. If you're looking to move
from owner operator out to an independent driver as a
business owner, you should be attending this manar in September.
If you're an owner operator already out there and you're
looking to possibly expand get your own authority, learn all
(39:08):
the rules regulations required to do that. Maybe you want
to add more trucks and you want to do the
other things to continue to grow. Tract to Success is
the place to be. You should be there. I'll be there. Man.
Come sit down with me in the lobby. Let's talk business,
Let's talk trucking. Let me know what you're going to do.
(39:32):
What you're most interested in, and how we can better
help you as a trucker. So you know, these are
the things that we're looking to do for you. Tax
talk for you, we bring you not just this one
big beautiful bill business side personal side. You know, last
(39:53):
week you can go back to our podcast and hear
a lot of the personal stuff that was in this bill.
In an hour, we could only get through a portion
of what was in this one big beautiful bill for
personal taxes and how it was going to save you money.
Next week we're going to get back to the one
(40:14):
big beautiful bill and how it affects you, the American taxpayer,
not the business on your personal return and how you
can use this bill to save yourself more money, and
the money that this bill saved every taxpayer and helping
you to make your life better now if you've got
(40:36):
a tax problem, Trucker tax Tools for truckers. We help
truckers save money. Taxation solutions, tax relief will help you
put your life on the right track, to fight the IRS.
To get you relief from IRS problems and put your
(40:58):
tax debt to bed for good, give you peace of
mind to be able to rest. We always tell people Hey,
call us the Taxation Solutions because you know we can
help you fight the irs, save you money, and get
you tax relief. We can't do it unless you pick
up the phone and call us, because we don't make
outgoing phone calls until you have contacted us and scheduled
(41:21):
the time with us. If you call A eight nine
three zero one zero one six again eight eight eight
nine three zero one zero one six, you can get
the help you need to save yourself versus the irs.
We got people standing buy, so don't don't worry. It's
a no judgment zone. Once you hire us, you never
(41:42):
have to talk to the IRS again. Hey, tell your
friends and family about tax Talk for You. We need
more listeners, We need more questions. We need to answer
the questions that you have that are been on your
mind for weeks or months but you were afraid to ask.
Contact us through our Facebook page at tax Talk for You,
contact us through our website tax talkfor You dot com,
(42:05):
or even go to W four C Y Radio and
listen to this program every month, every week. Actually, man,
I was thinking we're doing this monthly. Now now we
do this weekly every Monday, ten am Eastern time. Again,
every Monday, ten am Eastern time right here tax Talk
for you to go to tax Talk for you. It's
(42:26):
tax Talk the number four you Letter you dot com,
Follow us over there, follow us on Facebook. If you
got questions during the week, post those questions. We will
be here to help you every Monday ten am to
connect with us. Be here, get your questions in and
let us answer those questions. Tax Talk for you dot com.
(42:49):
Thank y'all. Have a god bless glorious week. Do something
great this week and then let us hear about it.
Have a wonderful week.
Speaker 3 (42:58):
Are you an individual business that wants to understand taxes
and how they affect you. Are you looking for specific
tax advice for self employed business owners and truckers. Are
you behind on taxes and your bookkeeping? Are you dealing
with the irs and ready to have some relief, Then
(43:19):
you need Tax Talk for You, hosted by tax and
trucker expert Barry G.
Speaker 2 (43:25):
Fower EA.
Speaker 3 (43:26):
Tune in ten am Eastern time every Monday right here
on W FOURCY Radio and Talk for TV. Don't forget
to check this and past episodes at tax talkforu dot com.
See you next week at W fourcy dot com.
The topics and opinions express in the following show are
solely those of the hosts and their guests and not
those of W FOURCY Radio. It's employees are affiliates. We
make no recommendations or endorsements for radio show programs, services,
or products mentioned on air or on our web. No
liability explicitor implies shall be extended to W FOURCY Radio
or its employees are affiliates. Any questions or comments should
be directed to those show hosts. Thank you for choosing
(00:21):
W FOURCY Radio.
Speaker 2 (00:27):
Barry G.
Speaker 3 (00:28):
Fowler EA brings you tax talk for you right here
on W four CY Radio and Talk for TV. As
an enrolled agent and a national leader in tax resolution
as well as Trucker bookkeeping and tax planning. With over
thirty years of experience, Barry will break down taxes, bookkeeping,
(00:49):
tax planning, and tax relief for individuals and businesses just
like you. So let's have some tax talk for you
with your host, Barry G.
Speaker 4 (00:59):
Foul Hey, welcome man, good morning, It's another great week,
and wait, what a way to start off talking taxes
on a Monday morning. You know, we have a lot
of fun. We enjoy what we do when the new
tax laws come out, we get a lot of good
rest because you know, we have to go through and
(01:21):
read those tax bills to know what's in them so
that we can talk about them here, you know, with
you and get the information out, you know, to you
our listeners and to our clients. And uh, you know,
last week was a great week here at Trucker Tax
Tools tax Talk for you. We've got a bunch of
(01:43):
new trucking clients. So if you're a trucker looking for
great bookkeeping service at a reasonable price, call us at
eight seven seven nine nine six two four seven seven,
or go over to Trucker tax Tools dot com again.
That number is eight seven seven nine ninety six two
four seven seven. Hey, we're talking to one big, beautiful bill.
(02:07):
Nine hundred roughly pages of a bill passed by Congress
signed into law by President Trump on July fourth. It
stends and expands many provisions of the twenty seventeen Tax
Cuts and Jobs Act TCJA, and it's helped aiming to
(02:33):
spur growth and reduce compliance burdens. Now I'm not sure
about the compliance burdens because it's adding a lot of
new twists and turns deductions that have limitations, so you know,
in my opinion, yes, it should help to spur growth
(02:54):
keep more money in people's pockets with some of the
things that's done on the personal side. Today we're going
to talk business and what provisions the one big beautiful
bill as for businesses, and the first one is bonus depreciation.
(03:14):
So everybody you know talks about depreciation and what we
can do with depreciation, whether Section one seventy nine or
bonus depreciation. What this bill does is full expensing has
become a permanent feature of this tax code. Specifically, Section
one sixty eight K one A has been amended to
(03:37):
replace the previously phased down percentage with a flat one
hundred percent, thereby putting in place permanently the ability to
fully expense qualified property. It's permanent until they come in
and change the code. Again. You have to like that
(03:58):
because you know, you never know what you're going to
get when you get these things. And it says it's permanent,
but again, if Congress passes a new law and changes
the law, it's not permanent. It's not like it needs
a constitutional amendment. It just needs Congress to come in
and pass a law that changes you know what they've
(04:21):
done is they've gone in and replaced the old rule,
put the new rule in to make sure that you
have this permanent expensing. Under the current law, Section one
sixty eight K of the Internal Revenue Code provided for
bonus appreciation allow taxpayers to immediately expense abortion of the
(04:42):
cost of qualifying profit property in the year's plash and service. However,
that percentage was scheduled to phase down after twenty twenty two,
from one hundred percent to eighty percent to sixty percent
to forty percent to twenty percent before fully sunsetting in
twenty twenty six. So this is amended that, and we've
(05:03):
got now the one hundred percent bonus depreciation. Now, nothing
in the legislature permits taxpayers to amend twenty three or
twenty four to revise bonus pre depreciation previously allowed at
eighty and sixty percent. Additionally, that one hundred percent bonus
appreciation that you get to expense under the new provision
(05:26):
does not apply to property placed in service or acquired
prior to the enactment date January nineteenth, twenty twenty five.
Property acquired before that date remains subject to the TCJA
phase down rules. Talk about complications. But when did you
(05:47):
buy the property that you're fixing to put in and
want to get depreciated? Now does it mean by or
does it mean placed in service. We've still got to
get some interpretations from the IRS to me make sure, hey,
which date is the applicable date because it's a lot
of times you if you're looking at buying a piece
(06:07):
of equipment at the end of the year, you may
have bought it in December, but you didn't place it
in service until the end of January when you actually
received that contract, that equipment and that property. So you
got to take a look at this and you've got
to interpret the laws. Now, got to understand they said
this was going to make the law less complicated, right wrong.
(06:31):
Got to be looking at those dates. So make sure
you got that effective date. New property acquired after January nineteenth,
twenty twenty five, So you need to make sure you're
looking at your dates. There's a special provision for special
(06:52):
depreciation allowance for qualified production property. A new provision under
Section one sixty eight allows one hundred percent bonus depreciation
for certain qualified non residential real property used in qualified
specific production related activities. See complications in this bill as
(07:15):
they go, So traditional one point sixty eight K bonus
depreciation applies mainly to personal property. This effective rule expands
full expensing to specific real estate investments that support manufacturing
and refining. I just remember land is not a depreciable asset.
(07:35):
The building on the land is. So when you're going
through and calculating and depreciation, you need to and especially
on a building and land, you need to know what
the value of the land is in the purchase so
that you can get your depreciation correct. So there's a
lot of important things in this when you're looking at depreciation,
(07:57):
and you've got to remember some key requirements. To qualify,
the real property must be non residential real property used
as an integral part of your qualified production activity. Be
placed in service in the US or a US possession.
See they're promoting growth here in the US. Have original
(08:20):
use beginning with the taxpayer. So it's got to be new,
be constructed between January twenty and twenty twenty five and
December thirty one, twenty twenty eight, be placed in service
by December thirty one, twenty thirty be designated as qualified
production property through election on the tax return. So you've
got to make this election fun fun fun. Nobody ever
(08:47):
said that Congress isn't full of a bunch of people
with hot air. You can do that when you read
this bill and knowing that there's how many pages in it,
you know there's a lot of carve ads and a
lot of crazy things that they do in this bill.
As a matter of fact, when you're reading this bill,
there are certain sections that you read and you interpret
(09:07):
based on what you're reading there. And I'll give you
the example, no tax on cash tips. But then later
on they clarify what cash tips are and it's not
just cash, it's basically any tips that do come in.
So there was some other interpretations you've got to put
(09:28):
into into this bill. When you are looking at this bill,
so you're going to want to talk to your tax
preparer and make sure that you can actually expense everything
here based on the qualified property. Make sure you're taking
the right amount of deduction, you're not taking too much deduction,
(09:52):
and make sure that the way it's going to be
done actually benefits you or business, because sometimes you're using
too much depreciation and you're really only offsetting smaller amounts
of income and you don't need to do the full
bonus depreciation on the piece of equipment that you have,
(10:16):
because you're already into a much lower rate and using
that depreciation. Bonus depreciation at a low rate doesn't save
you as much money as possibly depreciating it over the
life of the of the asset. Asset useful life of
the asset, and you'll get better use of your depreciation
(10:40):
to down. We're going to talk about Section one seventy
nine depreciation right after this quick break.
Speaker 3 (10:47):
We have only scratched the surface of today's show. Please
stand by as Barry che Bower will be right back
with tax talk for you. If you owe the IO
or are going through an IRS audit, don't go at
it alone. Call Taxation Solutions Tax Relief at eight eight
(11:08):
eight nine three zero one zero one six. We are
your solution for IRS debts, audits, back taxes, garnishments, leans
and levees. Whether you're an individual or business, you need
a solution and a strong aggressive tax resolution. Don't let
(11:28):
the IRS walk all over you. Stop the IRS now.
Call eight eight eight nine three zero one zero one
six or go to Taxationsolutions dot net now for a
free no obligation consultation let's get back to tax stock
(11:48):
for you with more tax stock once again.
Speaker 2 (11:52):
Here's your host, Barry G. Fowler.
Speaker 4 (11:57):
Hey, welcome back. Section one seventy nine has heard that
term before you know. It allows you to expense the
asset that you bought if it doesn't fit under bonus
appreciation or maybe you just need to use a portion
of it. Section sevent nine has increased, so the increased
(12:17):
limits provides greater flexibility the larger first year deduction for
business investing in capital assets. So what they've done is
a mended Section one seventy nine B one to increase
the maximum deduction from one million to two point five billion. Simultaneously,
Section one seventy nine B two increase the phase out
(12:40):
threshold from two point five million to four million. These
adjustments are drastically dramatically raising the ceiling at which small
and mid sized businesses can fully expense the quality cost
of your qualified property property. Now, once you get above
these limits, your deduction is reduced dollar far dollar by
(13:05):
dollar for the amount of qualifying property placed in service
that exceeds the four million threshold. Once the total cost
of eligible property placed in services ex seeds six point
five million, the entire Section one seventy nine is phased out,
so you still got the complications out there. They're going
to also add in new inflation adjustment rules for Section
(13:27):
one seventy nine, so they've changed that so it'll be
indexed for inflation future as well. So these are not
going to be static numbers. They're assuming more midside sized
businesses are going to qualify for expensing under Section one
seventy nine, and then you need to monitor inflation adjustments
(13:52):
every year just to make sure that you know they're
qualifying how much you can actually expense. That's something interesting.
We talk to businesses, and a lot of our businesses
we talk to our LLC's multi member or even single
member so reporting as a sole proprietorship or they are escorts,
(14:12):
and you do business charitable contributions, and your business charitable
contributions pass through to your personal return and if you
are itemizing, you get to take it on schedule A. Now,
if you are a c court, you're reporting on eleven twenty.
This bill is going to introduce the significant change to
(14:35):
the rules governing corporate charitable deductions by putting in a
one percent floor for deducting charitable contributions. So they amended
Section one seventy B two A as if everybody really
wants to go through and read the IRS Code. But
if you do, it's section one seventy B to a corporates.
(14:59):
Corporates deduction for charitable contributions is in a taxable year
will only be allowed to the extent that the contribution
exceeds the one percent of the corporate's taxable income, and
it also remains capped at ten percent of taxable income
as it is in current law. So this means if
(15:22):
you're running a corporation and you're reporting on eleven twenty,
you're not going to receive any tax benefit for the
first one percent of taxable income donated to a charity,
or if you give more than ten percent, you're going
to be limited to the ten percent. Andy Sometimes we
tell people, you know, especially when you are in business,
(15:46):
sometimes it's better to use your charitable contributions to do marketing,
you know, pay them to put your banners and stuff up.
Have the marketing section of it, so it is fully
deductible in not having to face the charities. So if
you're running an escort, you're running a partnership, you're running
a multi member LLC tax as a partnership or as
(16:09):
a single member tax as a sole proprietor. Marketing sometimes
is better deduction for you than the charitable contributions because
you have to get over the standard deduction. If you
don't get over the standard deduction, then it has done
you no good. So if you're contributing from your business,
maybe you want to look at ways of using that
(16:31):
charity to provide you with more marketing as opposed to
giving charitable contribution. Now, the IRS did put in carry
forward rules. The treatment of disallowed contributions is adjusted to
reflect the new floor. Contributions exceeding the ten percent cap
can still be carried forward for five years. However, the
(16:54):
new caveat only contributions disallowed due to exceeding the ten
percent cap will be eligible for the fully carry forward.
If a contribution is disallowed solo to not exceeding the
one percent floor, it can be only carry forward if
the ten percent limit was also exceeded in that year. Okay,
and then they have BIFO rules. First in first out
(17:17):
contributions be treated as used in the order they were made.
First in first out BIFO fun things in life taxes.
That's why we do taxes. We enjoy doing this. This
is not effective until after December thirty one, twenty twenty five,
so this will become effective in twenty twenty six. You know,
(17:42):
if if you are court running as a corporation and
you're making consistent charitable contributions near or below the one
percent threshold, you're losing the deductibility of that, and it
does take away some of the incentive for charitable giving.
Sometimes you got to look at this in a different light.
Maybe look at it that you want to spend it
(18:03):
more as marketing. So little tidbits out there you can
really kind of look at how you want to do
your charitable contributions. Is it going to exceed the one
percent floor? Is it going to exceed the ten percent?
So maybe you want to limit what you're what you're giving.
(18:24):
So those are things to keep in mind and when
you're doing tax planning and planning for the future, how
you're going to save money for your business, where you
want to spend spend the money, and how you want
to spend the money as well. Now, this one big
beautiful bill, I guess they call it the o BBB
(18:44):
A one Big Beautiful Bill Act did repeal revision of
the diminished rules for third party network transactions. So what
is that, Well, a lot of that is your ten
ninety nine K reporting, So you know, it gets got
really complicated. And we've seen people that have received ten
(19:08):
ninety nine k's, you know through maybe Zemo paypath, maybe
not really doing or being in business, but using it
to transfer money between family members. Maybe like I went
and bought a Mother's Day gift for my mom from
me and my sisters, and then people reimburse me or
(19:33):
my sisters. One of my sisters bought Christmas gifts for
my mom and we all reimburse her. And you know,
there may be other things that have happened that you
get reimbursed. You pay for something and somebody reimburses you,
and then the reporting company gives you the ten ninety
(19:53):
ninety K. Well, these rules needed to be modified, and
it's not going to prove that if your transactions are
still over the limit. But it amended section sixty fifty,
we they're only going to be required to issue ten
ninety nine K if both conditions are met the total
(20:17):
payments to a paye exceed twenty thousand and the number
of transactions surpassed two hundred within a calendar year. So
I hope you know there's not twenty thousand moving back
and forth between family members now, I will be This
would kind of be funny because my sister would have
passed the twenty thousand when she bought a vehicle from
(20:39):
my mom when she was xelling them, but she wouldn't
have surpassed the two hundred transactions within a year. Us
are kids and somebody else are transferring a lot of
money back and forth, you know, you know, so these
are the things that really helped. Now, if you're object
(21:00):
to back up with holdings, you know, you've got to
be concerned because they may still take the backup with
holdings from this as well. So that's kind of, you know,
some good things there. So you know, if you receive
fifty payments totaling five thousand through some kind of craft
selling platform, or you were selling eggs because she had
(21:25):
fewer than because you have fewer than two hundred transactions
in less than twenty thousand, the platform is not going
to give you a ten ninety k. Now if you're reporting,
you know you're selling eggs and you have a thousand
transactions at you know, five dollars each. You know that's
only five thousand. There's still going to be no reporting
(21:46):
on that because you didn't break both thresholds. But if
you're doing some free atlance work, consulting work, or something else,
and you've received two hundred and fifty payments in the
total twenty five thousand, you're going to get a ten
ninety nine. Okay, So you've got to be aware of
that and know that you're going to have to make
sure that you're reporting.
Speaker 2 (22:06):
Yeah.
Speaker 4 (22:06):
The one thing about that is if you're in a
consulting business, you're running a business. Whether they give you
the ten nun and nine k or not, you still
should be reporting all your income as well. Hey, when
we come back, where you continue talking about this one big,
beautiful bill and what else it has for your businesses
and how it'll impact we're right back.
Speaker 3 (22:30):
We have only scratched the surface of today's show. Please
stand by as Barry Gie Fowler will be right back with.
Speaker 2 (22:38):
Tax talk for you.
Speaker 3 (22:42):
As an owner operator, you already spend too much time
away from your family. Trucker Tax Tools handles all your
bookkeeping in taxes, no matter what level Trucker you are.
Life on the road can be taxing, but that doesn't
mean that your wallet or time with your family should suffer.
Tax Tools makes your life run smoothly. Go to Trucker
(23:04):
tax Tools dot com for a free guide that will
give you the tools to never worry about your taxes again.
Call Trucker Tax Tools eight seven seven nine sixty six
two four seven seven or go to Trucker tax Tools
dot com now and let.
Speaker 2 (23:21):
The experts keep you trucking.
Speaker 3 (23:26):
Let's get back to tax stock for you with more
tax stock once again.
Speaker 2 (23:31):
Here's your host, Barry g. Fello.
Speaker 4 (23:36):
Hey, welcome back. You know, we're talking about different things
that effect businesses, and one thing that business has always
got to do is send out UH ten ninety nine
miscellaneous or ten ninety nine NEC ten ninety nine none
employee compensation. But starting in twenty twenty six, the threshold
(23:57):
for information reporting under a Revenue Code Section six zero
four to one A is actually increasing. It's going from
the six hundred dollars that we've been at that did
an index for inflation to two thousand dollars. This change
means businesses will only need to file information returns such
(24:18):
as ten ninety nine NEC or ten SELLANEUS if your
total payments to a recipient in a calendar year exceeds
two thousand dollars. Now, starting in twenty twenty seven, that
two thousand is going to be adjusted annually for inflation adjustment,
(24:39):
but based on the cost of living formula under section
one f three in calendar year twenty twenty five as
the base, and the amount is going to be rounded
to the nearest one hundred dollars increment. So what I
see is it's going to be two thousand, and then
it's going to be twenty one hundred and twenty two hundred.
So you know we're going to be hit two thousand
(25:01):
being the amount for twenty twenty six. You're still going
to be reporting at the six hundred dollars level twenty five.
Don't jump to the conclusion that you don't have to
do the ten ninety nins. If you're under two thousand,
it's still a six hundred for twenty twenty five. So
(25:21):
you know, you make sure that if you do work
with independent contractors, and I tell people this all the time,
the first time somebody works for you, get that W
nine before you have to issue the payment, because I'm
going to tell you it's harder to get a W
nine from somebody after they finished doing work for you.
But if you get it on the very first time,
(25:43):
you've already set the standard that hey, I'm going to
issue you at ten ninety nine. Is I am not
going to be responsible for the taxes on your contract
labor if I was to get audited. So if I've
issued the ten ninety nine and it puts the burden
back on you, and I'm not the one going to
(26:04):
be left holding back. So keep those things in mind
when you first hire somebody as a contractor and get
them to sign, you know, your contract, get them to
sign and file the W nine with US. Verify that
they are legally here, so you're not held accountable either.
(26:25):
You know, you don't want to be doing work for
somebody that is here illegally using illegal Social Security number
that isn't valid or is somebody else's. It's just going
to get you in trouble. It's going to get you
when you do file your W nine ten ninety nine,
when they get kicked back, you're the one that's going
(26:46):
to be responsible for trying to find that person and
get the correct solid Security number, which I'm sure they've
already disappeared. So you want to make sure that you're
keeping track of it, keeping the INFRA nation so that
you know you have good records. So you've got to
(27:07):
make sure you're doing that, don't You can't also count
on Venmozelle whoever you're using to pay these contractors or
gig workers or whatever. They're not getting the ks, so
you got to be making sure you're giving the tens there.
(27:27):
So again, remember reporting threshold under the current law is
six hundred dollars. Starting next year it will be two thousand,
and then index for inflation. Under the current law, we
had no indexing. New law will be indexed after twenty
twenty six. If you're paying for services, the six hundred
dollars threshold applies this year. Starting in twenty twenty six,
(27:51):
the new threshold applies. So keep those things in mind. Now,
this one big, beautiful bill did the things for qualified
business income and it's called the qb I. Now that
was part of Trump's tax law back in twenty seventeen.
They did do some enhancements to that bill. Hey, I'm
(28:13):
going to ask answer a quick question here. What's the
difference between the ten ninety nine K and ten ninety
nine NEC and the ten ninety nine miscellanea. So the
ten ninety nine K is coming from a merchant service provider.
If you're accepting credit cards, taking Venmo, taken Zell, they're
going to issue the ten ninety nine case NEC is
(28:36):
somebody that's a non employee. So you know, if you've
got somebody that's working for you, there's a contractor, you're
going to issue the ten ninety nine an EC. Miscellaneous
has several different categories. It could be royalties, it could
be rents. So what you've got to do is look
at the forum ten ninety nine and you can see
the different things that if you've paid for, how you're
(28:58):
going to have to report it. So if if you're
a business and you're paying rent to individual, you're going
to issue them a ten sellaneous rents out there maybe
to do it for LLCs. It just depends on the
qualifications that you have out there as well. All right,
(29:19):
I know everybody's been, you know, thinking about this and
talking about this is Qualified Business Income Deduction QBI. It
expanded and phased in thresholds for income based limitations they
threw in a few more complications and where it can
(29:41):
phase in. It added some guaranteed minimum deductions for active businesses.
And guess what. Because it's in depth, it's long discussion.
We're going to take a short break and then we're
going to jump right in to QBI right after this.
Speaker 3 (29:58):
We have only scratched a serp us of today's show.
Please stand by as Barry G. Fowler will be right
back with tax talk for you. As an owner operator,
you already spend too much time away from your family.
Stop spending time doing paperwork. Go to Trucker tax tools
(30:18):
dot com, a solution built specifically for truckers. Trucker tax
tools dot Com makes your life run smoothly. Let's get
back to tax stock for you with more tax stock
once again, here's your host, Barry G.
Speaker 2 (30:36):
Fowler.
Speaker 4 (30:39):
Hey, qb I QBI Qualified Business Income Deduction Section one A.
This changes are going to take effect and tax your
twenty twenty six, not twenty twenty five, but expanded phase
in threshold for income based limitations. The amendment increases the
(31:02):
phase in ranges for the W two wage and qualified
property requirement limitations for single filers. The phase in window
expands from fifty to seventy five thousand for joint filers
one hundred to one hundred and fifty thousand. This adjustment
means basically more taxpayers are going to be able to
(31:23):
take full advantage of the QBI deduction before encountering any
income based restrictions. Now, it did also throw in a
guaranteed minimum deduction for active businesses. If you're not active,
you wouldn't qualify anyway, would it? Don't know, That's just
(31:43):
the way it is. A new provision in the Section
one ninety nine a I. Section I introduces a minimum
QBI of four hundred dollars for qualifying taxpayers. To be eligible,
you the tax must have at least one thousand dollars
in qualified business income from an active business they you
(32:07):
are materially participating in as defined by Section four sixty
nine H. The minimum deduction is going to ensure as
small actively managed businesses received meanionful QBI, even when calculated
at the twenty percent would otherwise be negligible amount. So
(32:31):
they're giving you a lot of four one hundred dollars
on a on you have a minimum one thousand dollars
of income beginning in twenty twenty seven, that minimum deduction
and the thousand QBI floor will be adjusted annually for
inflation and then rounded to the nearest five dollars at
(32:52):
one hundred five dollars. So you know it, QBI has been,
you know, pretty good as giving small businesses a leg up,
giving small businesses who do make money depending on the
phase in and how they're paying people assets. Uh, you know,
(33:14):
a twenty percent right off on that income. It's it's
been really really good for people. So, you know, for
the way this bill worked, if you were a consultant
with QB, I have one hundred and twenty thousand, small
businessman with QBI have a one hundred qualified business income
(33:37):
of one hundred and twenty thousand. If you were single
and QBI was one hundred and twenty tax income one
thirty five, you would have a phase in below the
one thirty five to around one seventy. Under the new law,
phase in doesn't start for single taxpayer until one hundred
(33:59):
and ninety three thousand is fully phased in at two
hundred and forty seven. Therefore, under the new law, you
would actually get twenty percent of one hundred and twenty
thousand who's a twenty four thousand dollars deductible Really nice.
So you know, at one hundred and thirty five thousand
you were below the plan. You still get to twenty
(34:20):
four thousand because your threshold would start around one seventy five.
So yeah, little things to keep in mind that are
out there. Uh, if you're married, finally joint your phasing
ends around four hundred and eighty three thousand. Now, you know,
there's a lot of other problems in this bill. There's
(34:40):
a lot of other things that have been issues with QBI,
but those issues didn't get one hundred percent straightened out here.
I really wish they would have just applied this to
all kinds of businesses across the board. But that being said,
not everything works the way you or I want it,
(35:04):
you know, and there are certain politicians that basically feel
that they want you to say how much would I
make send it in, and then we'll give you money
back that we think you should should have. You know,
I can't stand those politicians. I can't stand the couple
politicians that try to make these bills more complicated than
they really need to be. Now, if you're into green energy,
(35:26):
hey great, you can be in the green entergy. I've
always felt that if you're going to support any industries
or anything else out there, it shouldn't be government supported.
If you need government support to help you maintain or
establish your entity and your business, do it through loans,
make you repay it through tash credits to lower the
(35:50):
cost of your your vehicle, or the cost of solar
or the cost of you know, electric, whatever it may be.
You know the businesses, and we hear a lot of
people say tax business, tax businesses. Well, if we're taxing businesses,
it should be every business the same way. So Sun
setting a business green energy tax and centives, to my opinion,
(36:13):
is great. I wish you would have just said, bam,
take them out, they're done. But it didn't do that.
So they're ending clean vehicle credits. They're ending the previously
owned vehicle Clean vehicle credits September thirtieth, twenty twenty five.
Qualified commercial vehicles credits September thirty, twenty twenty five. So
(36:37):
if you're looking for clean energy credits, get out there
and get the car now before they go away after
December thirty one, twenty twenty five. Clean Electricity Production credits,
clean electricity investment credit is going away. Clean hydrogen production
credits are going to be going away with some restrictions,
(37:00):
So they are sunsetting these laws. If an industry can't
support itself, again, is it a viable business? Is it
a viable structure for this business. I know we want
clean energy, I know we want clean cars, and I
(37:21):
know you've got to regulate. But again that burden should
be on the development and business that is doing it
and the people that are buying the products, not in
the backs of every single American taxpayer. You know, taxes
isn't for the redistribution of wealth. Taxes is to support
(37:42):
the government and their primary functions. And if you want
to know what the primary function of the federal government is,
wead the Constitution. You can see what's laid out in
that Constitution what the role of our federal government is.
It's not what they make it to be. Is developed
into what they've made it to be. If you want
(38:03):
to know when taxing started, it surely didn't start with
the very first constitution. Taxing the American people started back
in like nineteen thirteen. And if you want to know
more about the tax code, then you're a trucker. Come
to the Truck for Success that o IDA puts on.
I talk a lot about tax code, where we started,
(38:23):
where we're going, and what our future is going to be,
and how you can save money on your taxes as
a trucker as a business owner. So go to Trucks
for Success. Go to IDA and look up truck for Success.
Come to this great seminar that we put on for truckers.
It's at the end of October. It's up in Blue Springs, Missouri.
(38:45):
Love to see you up there. I'll be up there.
You should be up there. If you're looking to move
from owner operator out to an independent driver as a
business owner, you should be attending this manar in September.
If you're an owner operator already out there and you're
looking to possibly expand get your own authority, learn all
(39:08):
the rules regulations required to do that. Maybe you want
to add more trucks and you want to do the
other things to continue to grow. Tract to Success is
the place to be. You should be there. I'll be there. Man.
Come sit down with me in the lobby. Let's talk business,
Let's talk trucking. Let me know what you're going to do.
(39:32):
What you're most interested in, and how we can better
help you as a trucker. So you know, these are
the things that we're looking to do for you. Tax
talk for you, we bring you not just this one
big beautiful bill business side personal side. You know, last
(39:53):
week you can go back to our podcast and hear
a lot of the personal stuff that was in this bill.
In an hour, we could only get through a portion
of what was in this one big beautiful bill for
personal taxes and how it was going to save you money.
Next week we're going to get back to the one
(40:14):
big beautiful bill and how it affects you, the American taxpayer,
not the business on your personal return and how you
can use this bill to save yourself more money, and
the money that this bill saved every taxpayer and helping
you to make your life better now if you've got
(40:36):
a tax problem, Trucker tax Tools for truckers. We help
truckers save money. Taxation solutions, tax relief will help you
put your life on the right track, to fight the IRS.
To get you relief from IRS problems and put your
(40:58):
tax debt to bed for good, give you peace of
mind to be able to rest. We always tell people Hey,
call us the Taxation Solutions because you know we can
help you fight the irs, save you money, and get
you tax relief. We can't do it unless you pick
up the phone and call us, because we don't make
outgoing phone calls until you have contacted us and scheduled
(41:21):
the time with us. If you call A eight nine
three zero one zero one six again eight eight eight
nine three zero one zero one six, you can get
the help you need to save yourself versus the irs.
We got people standing buy, so don't don't worry. It's
a no judgment zone. Once you hire us, you never
(41:42):
have to talk to the IRS again. Hey, tell your
friends and family about tax Talk for You. We need
more listeners, We need more questions. We need to answer
the questions that you have that are been on your
mind for weeks or months but you were afraid to ask.
Contact us through our Facebook page at tax Talk for You,
contact us through our website tax talkfor You dot com,
(42:05):
or even go to W four C Y Radio and
listen to this program every month, every week. Actually, man,
I was thinking we're doing this monthly. Now now we
do this weekly every Monday, ten am Eastern time. Again,
every Monday, ten am Eastern time right here tax Talk
for you to go to tax Talk for you. It's
(42:26):
tax Talk the number four you Letter you dot com,
Follow us over there, follow us on Facebook. If you
got questions during the week, post those questions. We will
be here to help you every Monday ten am to
connect with us. Be here, get your questions in and
let us answer those questions. Tax Talk for you dot com.
(42:49):
Thank y'all. Have a god bless glorious week. Do something
great this week and then let us hear about it.
Have a wonderful week.
Speaker 3 (42:58):
Are you an individual business that wants to understand taxes
and how they affect you. Are you looking for specific
tax advice for self employed business owners and truckers. Are
you behind on taxes and your bookkeeping? Are you dealing
with the irs and ready to have some relief, Then
(43:19):
you need Tax Talk for You, hosted by tax and
trucker expert Barry G.
Speaker 2 (43:25):
Fower EA.
Speaker 3 (43:26):
Tune in ten am Eastern time every Monday right here
on W FOURCY Radio and Talk for TV. Don't forget
to check this and past episodes at tax talkforu dot com.
See you next week at W fourcy dot com.
Popular Podcasts
Stuff You Should Know
If you've ever wanted to know about champagne, satanism, the Stonewall Uprising, chaos theory, LSD, El Nino, true crime and Rosa Parks, then look no further. Josh and Chuck have you covered.
Las Culturistas with Matt Rogers and Bowen Yang
Ding dong! Join your culture consultants, Matt Rogers and Bowen Yang, on an unforgettable journey into the beating heart of CULTURE. Alongside sizzling special guests, they GET INTO the hottest pop-culture moments of the day and the formative cultural experiences that turned them into Culturistas. Produced by the Big Money Players Network and iHeartRadio.
Crime Junkie
Does hearing about a true crime case always leave you scouring the internet for the truth behind the story? Dive into your next mystery with Crime Junkie. Every Monday, join your host Ashley Flowers as she unravels all the details of infamous and underreported true crime cases with her best friend Brit Prawat. From cold cases to missing persons and heroes in our community who seek justice, Crime Junkie is your destination for theories and stories you won’t hear anywhere else. Whether you're a seasoned true crime enthusiast or new to the genre, you'll find yourself on the edge of your seat awaiting a new episode every Monday. If you can never get enough true crime... Congratulations, you’ve found your people. Follow to join a community of Crime Junkies! Crime Junkie is presented by audiochuck Media Company.