Episode Transcript
Glenn Harper: 00:00:48
Hello, everyone. Welcome to another edition of the Empowering Entrepreneurs podcast. I’m Glenn Harper.
Julie Smith:00:00:51
Julie Smith.
Glenn Harper: 00:00:52
What’s going on, Julie?
Julie Smith: 00:00:53
Really excited for this solo episode today.
Glenn Harper: 00:00:55
Well, we’re going to talk today a little bit, I think. What did you hear? Something about a big beautiful bill, maybe?
Julie Smith: 00:01:00
Well, we hear a lot about this big beautiful bill, but it’s like, how does it affect me? How does it affect you? What does that look like? What can I, what, what does this allow me to do? What can I plan for?
Glenn Harper: 00:01:10
Now you want a G wagon, don’t you?
Julie Smith: 00:01:13
Well, we’ve been talking about that, right?
Glenn Harper: 00:01:15
No.
So what the big beautiful bill does, which is really nice for entrepreneurs and anybod owns a business, big companies, little companies, whatever is, it solidifies the tax rates that are now permanent. Where before in the old TCGAA they were set to expire after the seven years. So now that they’re permanent, now we can plan long term.
What is that cost gonna look like for our taxes? That’s step one, which is a big deal. Cause now that gives us some consistency and some Runway to go.
Okay, if we do this, this and this, we know what those results are gonna look like.
Julie Smith: 00:01:47
Now I know when I can buy my G wagon plan.
Glenn Harper: 00:01:50
That’s right.
Step two then says, well, let us have inside the big beautiful bill, let us have the qualified business income deduction, which works for most flow through entities.
It lets us be able to take this free deduction based on either your profit or your payroll and let you just deduct it right off the top if you’re a qualifying business, which is really nice because that was set to expire. So that would have been a huge tax increase for flow through entities, which is the majority of the people working today have a flow through entity.
The next thing was is that the bonus depreciation where you could deduct. You have to take things over time or do.
When you buy a big asset, you have to take it over five years, seven years, 15 years, 20 years, whatever it is. But when you bought a vehicle, you had to take it over time and it was limited.
Well, if you buy a heavy vehicle over £6,000, you get to write off 100% of that up to the business use of it right away. If you.
And this includes a plane, anything you need for a business, you have a factory, you’re building equipment, all the things, some certain improvements that are qualified for a particular building. So what it does is it puts in play where when you buy something big, normally you had to take it over a long time.
You can write it off today, which is really, really nice.
Julie Smith: 00:03:04
So if I need a big truck to put a plow on it for this weekend, when this big snowstorm, this would apply to me.
Glenn Harper: 00:03:10
Correct. Instead you used to have to buy it, depreciate over five, seven years. There was limits on it. Now write the whole thing off.
There’s really no limit on it, which is really nice.
And so that’s going to help a lot of people invest in that property plant and equipment and get an immediate tax benefit to help pay for the cost of that and subsidize that with the government. And you get to then put that piece of equipment into play and make your income off it or utilize it in your business however you want.
So now we’ve got instant write off for a lot of things. We’ve got locked in tax rates and we have the ability then to have have this qualified business income deduction be very permanent.
And it’s a very wonderful thing.
So if you’re an entrepreneur, all three of those strategies are really nice to be using and make sure you recognize those as you go through your tax planning strategies.
Julie Smith: 00:03:56
Another episode of Empowering Entrepreneurs.
