EDITORS’ NOTE Derrick Myers, CPA, CFP, PFCI, loves a good financial management challenge, however big or small. Send your questions to fmeditor@safnow.org. Leverage the Latest Tax Changes With permanent rate cuts and expanded write-offs, a new law offers big savings — and new risks — for small business owners. hether you’re running a flower shop, raising a family — or doing both — your bottom line is about to change. On July 4, Congress passed the sweeping “One Big Beautiful Bill Act” (OBBBA), a massive tax and spend-ing package that will affect virtually every American household and small business for years to come. For floral business owners, the bill brings some notable wins: permanent tax cuts, expanded deductions for things like overtime and tip income, and powerful new incentives for business investments. It is also expected to have impacts on social pro-grams, which could affect your community — and your revenue. W Impacts to Personal Finances: Expanded Deductions The OBBBA introduces four new deduc-tions for tax years 2025–2028: 1. Tip income: If you or your staff receive tips for delivery or arrangements, that income can now be deducted from your taxable income, up to $25,000. 2. Overtime pay: You can deduct up to $12,500 (single filers) or $25,000 (joint filers) with the deduction phasing out for incomes over $150,000 (single) or $300,000 (joint). 3. Auto loan interest: For personal vehicles there is now a deduction of up to $10,000 annually for interest Permanent Tax Cuts & Rate Extensions The bill permanently locks in lower individual tax rates and higher standard deduc-tions first introduced in the 2017 Tax Cuts and Jobs Act. Without this extension, most households would have seen a tax increase starting in 2026. Instead, about 62% of taxpayers will now avoid tax hikes, according to the Tax Foundation. That translates to more money in your pocket — an estimated 2.9% in after-tax income in 2025, growing to 5.4% in 2026. For many families, this means more take-home pay to go toward savings, household expenses, or for business owners, the business. 38 FLORAL MANAGEMENT | Sept/Oct 2025 | WWW.SAFNOW.ORG SHUTTERSTOCK/HOLYK LIUBOMYR
Floral Management Magazine September/October 2025: Page-38
