paid on a newly purchased, U.S.-assembled vehicle. 4. Senior deduction: If you are 65 years old or older, you can claim an extra $6,000 deduction. You might not qualify yet — but it’s good to keep in mind for retirement planning. These are “above-the-line” deduc-tions, meaning they reduce your adjusted gross income and can benefit those who don’t itemize their tax returns. State & Local Tax Deduction Cap Raised Child Tax Credit Boost & “Trump Accounts” The child tax credit increases by $200 to $2,200 per child (under 17) and will be indexed to inflation starting in 2026. Eligibility is still based on your income, with the benefit beginning to phase out for households earning over $400,000. The new Trump Accounts, akin to child savings accounts, are created for U.S. children born from 2025 to 2028. The program offers: $1,000 initial government seed money per child Tax-free growth on family contributions up to $5,000 per year and up to $2,500 from employers Options to use funds for education, home purchase, or business startup costs once the child is 18 years old The State & Local Tax (SALT) deduction — previously limited to $10,000 — is tem-porarily increased to $40,000 for married couples earning less than $500,000. This higher limit will last for five years, then revert back to the original cap. If you itemize your deductions and pay significant state and/or local taxes such as property tax on your business or home, or state income tax, this expanded cap could let you deduct up to $30,000 more than before. However, if you take the higher standard deduction — which still provides a larger tax break for many households — you’ll likely con-tinue with that option. delivery van, floral cooler, or POS system — up to $2.5 million. 100% bonus depreciation. This applies to newly purchased business property, such as machinery or major shop improvements, giving you more flexibility in capital planning. On the estate and gift tax side, the double estate and gift tax exemption — now $15 million per individual or $30 million per couple—is permanent and indexed to inflation. While most small business owners won’t hit that thresh-old, it removes uncertainty around future wealth transfers or succession planning. Small Business & Estate Planning Perks Impacts to Your Community & the Economy Cuts to Social Safety Nets If you own a flower shop — especially if it’s a pass-through entity like an LLC or sole proprietorship — you’ll benefit from the permanent extension of the 20% Qualified Business Income (QBI) deduc-tion. This enables you to deduct 20% of your business income on your per-sonal tax return. The income limits have expanded, with joint filers qualifying up to $150,0000 in income. Additional benefits include: Expanded Section 179 expensing. You can now fully write off equipment purchases — like a HOW TO TAKE ADVANTAGE The bill includes planned changes to major social programs — including stricter eligibility rules and work require-ments for Medicaid. It also calls for reductions to funding levels for SNAP (commonly known as food stamps). The full impact of these changes will depend on how they’re implemented at the fed-eral and state levels. If your family has private health cov-erage, you may not feel any immediate effects. However, these changes could still impact your broader community — especially if your employees, customers, or family members rely on public ben-efits. For example, reduced Medicaid funding could lead to fewer affordable childcare options or the downsizing of safety-net hospitals in rural areas. 1. Tax Prep Review: Discuss with your accountant how new deductions (especially auto loan interest and overtime) can optimize your filings for 2025 onward. 2. Business Planning: Time major purchases — new vehicle, shop upgrades — so you can leverage expensing and depreciation benefits under Section 179 and bonus depreciation. 3. SALT Strategy: If you pay high state or property taxes, re-evaluate whether itemizing and using the $40K cap saves more than the standard deduction. 4. For babies and future children or grandchildren: Consider opening a Trump Account if you have children born between 2025 and 2028. 5. Health Care Coverage: Monitor coverage changes in your community’s access to health care and Medicaid-funded services. As a small business owner, you might consider small-group plans or cost-sharing strategies. 6. Long-Term Debt Vigilance: Stay alert to rising interest rates, since higher deficits may translate to steeper rates down the road for mortgages or business loans. Clean Energy Rollback & Budget Deficit Risk The bill rolls back renewable energy incentives and prioritizes fossil fuels. It is also projected to increase the federal deficit by an estimated $3 to $4.6 trillion over the next decade. Why does that matter to you? A larger deficit could lead to higher inter-est rates down the road, which may make borrowing more expensive — whether you’re taking out a business loan, buying equipment, or refinancing your mortgage. Derrick P. Myers, CPA, CFP, is president of Crockett, Myers & Associates, Inc. The magazine of the Society of American Florists (SAF) 39
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