Page 20 - The South China Business Journal

D.C. TODAY

Navigating the New Tax Law:

What

Need to Know

By U.S. Chamber of Commerce
A practical guide to maximizing savings for your small business under
the ¡°One Big Beautiful Bill Act.¡±

he recently enacted ¡°One Big Beautiful Bill Act¡± Who qualifies: Sole proprietors, partners, and S
Tincludes substantial tax reforms to support the corporation shareholders.
growth of small businesses. Small business owners
can take advantage of these tax breaks starting What to do:
now for expenses dating back to January 20, 2025. ? Calculate your qualified business income (QBI) for
the year.
This guide outlines the most impactful provisions of ? Deduct 20% of your QBI on your federal
the law, including permanent deductions, enhanced
credits, and expanded eligibility criteria. It provides tax return every year?this deduction is now
clear, step-by-step instructions to help business permanent.
owners navigate the changes and optimize their ? If your QBI deduction is low, check your eligibility
tax strategies. Download the guide or read below to for the new inflation-adjusted minimum deduction
learn more. (at least $400).
? If you were previously ineligible for the deduction,
1. Permanently Claim the 20% Qualified determine whether changes to the phase-in of
Business Income (QBI) Deduction existing limitations make your business eligible.

17 AMCHAM SOUTH CHINA