Top accountant Pauline Ho founder of Laus Consulting Services LLC in Orlando, FL, warns small business owners to prepare for major 2025 tax changes, including higher standard deductions, restored 100% bonus depreciation, and updated mileage rates. For more information please visit https://lausconsult.com
-- Small business entrepreneurs are urged to stay abreast of tax changes in 2025 that could impact their strategic decision-making for the next 12 months.
For more information please visit https://lausconsult.com
Pauline Ho, CPA at Laus Consulting Services, LLC in Orlando, FL, said that the latest tax bill from the IRS was one of the most significant for businesses for many years as it touched diverse areas of the tax landscape.
Ho pointed out that several legislative changes and IRS updates affect depreciation, mileage, inflation adjustments and retirement rules.
For 2025, the standard deduction has risen by $400 to $15,000 for single filers, $800 to $30,000 for married couples filing jointly, and $600 to $22,500 for heads of household.
Ho pointed out that bonus depreciation and Section 179 expensing have become more generous, enabling owners to consider accelerating equipment and real-property improvements.
The tax legislation restored 100% bonus depreciation for qualifying property acquired and placed in service after January 19, 2025, and expanded 179 eligibility and limits, allowing many businesses to deduct the cost of qualifying property immediately rather than depreciating it over years.
She further highlighted that the Qualified Business Income (QBI) deduction remains an important benefit for many owners, providing a 20% deduction of qualified business income.
However, the deduction’s availability and size continue to depend on taxable income, whether the business is a specified service trade or business, and the wage/capital tests.
Small business owners should be aware that the Work Opportunity Tax Credit (WOTC) remains active for 2025, enabling them to claim credits of up to $9,600 per qualified employee, especially in hiring from targeted groups such as veterans or long-term unemployed.
Another element for change is the mileage and vehicle expense rules, which have been updated for 2025. The IRS set the business standard mileage rate at $0.70 per mile.
Ho also specified that small businesses investing in solar, EV charging stations, or other green infrastructure may qualify for federal tax credits, subject to specific provisions and eligibility.
Additionally, the 1099-K reporting threshold, remains at $20,000 and 200 transactions for payments received through apps and online marketplaces.
Ho added that the IRS changes will also mean a ramp-up in IRS audits and compliance. This means that small business entrepreneurs should be very detailed in their approach to record-keeping and maintaining up-to-date books.
Inevitably, the rise of AI across the industry means that the IRS will be deploying more software and tools to carry out audits and root out any errors and anomalies.
“The need to be completely clear in accounting for small business owners has never been more evident,” said Ho. “Tax law can be highly complex, so business owners should consult their accountants to discuss and apply these changes and stay ahead of the curve.
“The alternative could be struggling on alone, making missteps and feeling swamped by errors or legislation they weren’t aware of. They could miss out on potential tax breaks or mess up when their tax returns are due.”
Source: http://RecommendedExperts.biz
Contact Info:
Name: Pauline Ho
Email: Send Email
Organization: Laus Consulting Services LLC
Address: 879 Outer Rd B, Orlando, FL 32814
Phone: 407-401-9768
Website: https://lausconsult.com
Release ID: 89170982
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