In this episode of 20/20 Money, I break down some of the most impactful tax and planning changes introduced in the recently passed Big Beautiful Bill Act—Congress’s sweeping update to the tax code that makes many TCJA provisions permanent while adding new wrinkles that matter to private practice owners.

 

Whether you’re thinking about how to reduce your taxable income, maximize deductions, or just stay ahead of legislative changes that affect your financial life, this episode is designed to help you take stock and plan strategically.

 

🏡 Individual Tax Provisions

1. SALT cap increase to $40,000 through 2029, with phase-down for high earners

2. QBI deduction made permanent, with higher income thresholds

3. Return of personal exemptions and new senior standard deduction

4. Expanded Child and Dependent Care Credit: up to $7,500

5. Introduction of Trump Accounts: tax-advantaged savings accounts for minors

6. Increased EV tax credit with potential application to business purchases

 

🧾 Business Tax Planning

1. 100% bonus depreciation made permanent

2. Section 179 deduction limit increased to $3 million

3. Updated QBI deduction strategies for S-corp owners and those near the new thresholds

 

⚠️ Watch-Outs and Questionable Strategies

1. Can you use 529 plan funds for CE expenses? (Short answer: only if they’re required for credentialing)

2. New car loan interest deduction—but don’t overbuy just for the tax break

3. Overtime and tip income exclusions for employees—opportunities for staff retention, but not game-changers for owners

 

🧮 Interesting Items Tucked into the Bill

1. 1099 reporting threshold increased from $600 → $2,000 (finally!)

2. No unemployment benefits for individuals earning > $1 million/year

3. Debt ceiling raised by $5 trillion—and why that doesn’t mean the Fed is buying debt

 

📌 Key Takeaway:

This legislation reshapes both personal and business tax planning for optometric practice owners. It’s a great time to revisit your compensation strategy, equipment financing, gifting plans, and entity structure—especially before year-end 2025 when many provisions take effect.

 

As a reminder, you can get all the information discussed in today’s conversation by visiting our website at integratedpwm.com and clicking on the Learning Center. While there, be sure to subscribe to our monthly “planning life on purpose” newsletter that’s filled with tips and ideas to help you plan your best life, on purpose. You can also set up a Triage conversation to learn a little bit more about how we serve in the capacity of a personal and professional CFO: helping OD practice owners around the country reduce their tax bill, proactively manage cash flow, and make prudent investment decisions both in and out of their practice to ultimately help them live their best life on purpose. If you’re interested in learning more about the 20/20 Money Financial Success Masterclass, a course & platform that we created to help ODs become “brilliant at the financial basics,” or are interested in learning more about how OD Masterminds creates space for real conversations, real accountability, and real growth, please check out the link in the show notes of this episode to learn more.

 

Resources:

20/20 Money Ultimate Financial Success Masterclass

OD Mastermind Interest Form

 

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