Welcome back to Belk on Business! I’m Josh Belk, and today I’m diving into another round of tax law updates from the recently passed “big beautiful bill.” This episode is all about understanding how some of the most impactful elements—like the tax bracket changes, SALT deduction cap, and Qualified Business Income (QBI) deduction—will affect you and your business.

If you’re a business owner, high-income earner, or just someone wanting to maximize your tax savings, this episode walks you through the practical implications of these changes and what steps you should consider before year-end to stay ahead.

3 Key Takeaways

• Lower Tax Brackets Are Now Permanent: All tax brackets—except the top one—have been permanently reduced, benefitting low- and middle-income earners the most.

• SALT Deduction Cap Increased Temporarily: From 2025 to 2028, the state and local tax deduction cap jumps to $40,000 for taxpayers earning under $500K.

• QBI Deduction Rules Refined: While the 20% QBI deduction remains, income thresholds and business classifications (like specified service trades) still limit eligibility, especially for high earners.

Episode Timeline & Highlights

[0:00 ] - Intro and recap of the ongoing breakdown of the new bill

[1:04 ] - Overview of the bill’s timeline and political context

[1:40 ] - Permanent tax bracket changes and who benefits

[2:50 ] - The SALT deduction cap increased—but with income limits

[4:38 ] - Why you may need to rethink pass-through entity tax planning

[5:16 ] - Understanding the QBI deduction and specified trade/service business limitations

[7:07 ] - Income thresholds and complex calculation rules for high earners

[7:58 ] - Case example: strategic entity structuring to retain QBI eligibility

Links & Resources

• IRS Tax Bracket Information: https://www.irs.gov/newsroom/irs-provides-tax-inflation-adjustments-for-tax-year-2025

• SALT Deduction Overview: https://www.taxpolicycenter.org/briefing-book/what-salt-deduction

• QBI Deduction (Section 199A) Guidelines: https://www.irs.gov/newsroom/section-199a-qualified-business-income-deduction

If this episode gave you clarity or sparked a few questions, be sure to rate, follow, and review Belk on Business. And don’t forget to share it with a friend or colleague who could benefit from these updates. See you in the next one!