Trump bill makes 100% tax write-off a forever thing that could save some US taxpayers six figures. Are you one of them?

The One Big Beautiful Bill Act, passed by Congress connected July 4, 2025, is simply a sweeping overhaul of the U.S. taxation code.

It includes well-publicized taxation credits and deductions for seniors arsenic good arsenic for high-income households.

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But different groups — including concern owners and existent property developers — volition bask taxation perks excessively (1).

That’s due to the fact that the instrumentality makes imperishable a taxation inducement introduced nether the 2017 Tax Cuts and Jobs Act during President Donald Trump’s archetypal word (2).

Specifically, the 100% bonus depreciation proviso allows concern owners to cipher aboriginal depreciation and deduct it from their taxes successful the existent taxation year.

For some, this alteration could mean immense savings — upwards of 7 figures. Here’s a person look astatine however it works and whether you could benefit.

Businesses wage firm taxes connected nett net (revenue minus costs). But erstwhile it comes to taxes, not each costs are equal.

For taxation purposes, superior costs (for example, caller equipment, furniture, vehicles and property) are treated otherwise than operational costs.

Business owners tin constitute disconnected a definite magnitude of depreciation for these items successful their taxes. Traditionally, they would bash truthful twelvemonth by twelvemonth arsenic the items depreciated.

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But acknowledgment to the 100% bonus depreciation regularisation introduced successful the Tax Cuts and Jobs Act and made imperishable successful Trump’s One Big Beautiful Bill, concern owners tin accelerate the taxation deductions for depreciation by carrying estimated depreciation guardant to the existent taxation year.

The reasoning down the 100% bonus depreciation was threefold:

• Spur home investment.

• Improve businesses’ currency flow.

• Reduce businesses’ taxes quickly.

Depreciation schedules specify however the depreciation of antithetic assets tin beryllium deducted implicit time.

For example, if you ain a pizza edifice and acquisition a caller pizza oven, traditionally you could constitute disconnected a information of the oven’s depreciation each twelvemonth to offset immoderate taxes.

Now, acknowledgment to the 100% bonus depreciation rule, the pizza oven tin beryllium afloat depreciated successful the archetypal year, importantly reducing the restaurateur's taxable income and full taxation bill.