2025 Tax Law Changes Are On The Way - Is Your Business Prepared?

Hello! I hope that all is well with you.

Taxes are certain, and 2025 is a bit different because we tax professionals are aware that tax law will change this year. How can this be so accurately predicted? The answer to that question is that the structure of the federal goverment as it exists in 2025 allows those in Congress and the President to pass a tax bill through a process known as "budget reconciliation".

Normally, it takes 60 votes for law to get through the Senate, but "budget reconciliation" allows legislation that is only concerned with the federal budget to pass with a simple majority vote. So businesses should beware, that tax law will change in 2025. However, the changes in tax law that are passed in 2025 will probably all not affect your business' 2025 tax return, the first year for the changes will be 2026.

Will the tax law changes be passed in the first half or the second half of 2025? Some in the federal government are pushing for the changes to happen early. However, the most likely scenario is that the changes will pass in the second half of 2025.

How could this affect you and your business? The simple answer to this question is "a lot of ways". Part of the backdrop for the expected 2025 bill is whether to fully extend the provisions of the 2017 Tax Cuts & Jobs Act, or to modify them in some way. Without a new tax bill passing in 2025, the provisions of the 2017 Tax Cuts & Jobs Act would expire in 2025. Both you and your business were almost certainly affected by the TCJA of 2025, so what happens this year will affect you and your business' tax return, and therefore your bottom line, beginning in 2026.

A summary of tax items that may matter to you that could be affected by the expected 2025 tax bill are:

For businesses

For individuals

It is advisable for you and your business to get a "head start" on these changes, the timeline for them, and how they might affect you.

Cloud Financial Solutions, LLC would like to help your business thrive through these changes, and incorporate them into your business model in an optimized way. You can reach out for a consultation by calling us, emailing us, or booking a consultation on this webpage using this link:

Please take care! We at Cloud Financial Solutions, LLC wish you well today and always.