Latest news with #QBI
Yahoo
14-07-2025
- Business
- Yahoo
7 Common Tax Planning Mistakes To Fix Before 2026, According to a CFP
Let's be honest: Tax planning isn't exactly fun (nor is paying taxes). But ignoring it could mean parting with money you didn't have to. Find Out: Read Next: If you're making one of these seven common tax planning mistakes — and many people are — you could face higher tax bills or missed opportunities come 2026. Christopher Stroup, a CFP and founder of Silicon Beach Financial, explained what to watch out for and how to get ahead of the curve. Tax planning should be 'proactive, not reactive,' Stroup insisted. 'When you wait until March, most of the best opportunities are already gone.' In fact, even sooner than that, as by year-end many strategies are off the table, especially for equity compensation (non-cash pay, such as stock), retirement savings and charitable giving, Stroup said. 'Last-minute tax planning tends to be reactive, rushed and sloppy. Real tax savings require time to coordinate across your income, goals and entity structure.' By waiting until the end of the year, you could be failing to coordinate with your financial goals at best or missing important deadlines and subjecting yourself to higher tax or penalty fees. Learn More: Another common mistake is neglecting to track your cost basis, especially for stocks, crypto or equity compensation, Stroup said. Your cost basis is essentially what you originally paid for an investment, including commissions or fees. It's easy to lose records over time he said, but if you don't have documentation to prove it, you could be taxed as if the entire sale was profit — even if you only made a modest gain or none at all. If you experienced a job change during the year but fail to account for it in your withholding — the amount of taxes you pay — this could cause problems, Stroup said. 'A second job or dual-income household might bump you into a higher bracket. If you don't update your W-4 or check your withholding early, you might face an unexpected tax bill and possibly a penalty.' If you earn income that must be reported on a 1099, either as a business owner or freelancer/contractor, you're expected to pay estimated quarterly taxes. 'Many freelancers forget to account for self-employment tax, which can add 15.3% to their liability,' Stroup said. Unfortunately, if you underpay your estimated taxes, the IRS may charge penalties, even if you're due a refund later, Stroup warned. 'Accurate quarterly payments protect cash flow and avoid year-end sticker shock,' he said. For eligible taxpayers, some credits can reduce your tax bill 'dollar for dollar,' Stroup said, but many people assume they don't qualify without even checking. A few of these credits include: Saver's credit (for low- to moderate-income retirement savers) QBI deduction (for self-employed and pass-through business owners) Health savings account contributions Education credits like the lifetime learning credit Recently President Donald Trump signed the 'One Big Beautiful Bill' (BBB) into law, which maintains many of the tax cuts from the Tax Cuts and Jobs Act of 2017 and adds other tax changes. It's important to plan for how this will impact next year's taxes, especially as some of the provisions are retroactive to 2025. 'Start modeling different scenarios now. Look at whether Roth conversions, income acceleration or trust updates make sense under current rules,' Stroup said. The 2026 sunset could bring higher income, estate and capital gains taxes. Early action lets you use today's lower rates strategically. When your financial life gets more complex than a W-2 and a 1099-INT, it's time to bring in the professionals, Stroup said. If you're dealing with equity comp, restricted stock units (RSUs), multiple income streams, business ownership and/or changing tax law, these all signal it's time to partner with someone who can go beyond filing and focus on building after-tax wealth. More From GOBankingRates Mark Cuban Tells Americans To Stock Up on Consumables as Trump's Tariffs Hit -- Here's What To Buy This article originally appeared on 7 Common Tax Planning Mistakes To Fix Before 2026, According to a CFP
Forbes
09-07-2025
- Business
- Forbes
Small Business And Gig Workers Score A 23% Tax Break Under New Law
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations. Freelancing can be notoriously difficult, but a new tax break might make things easier— that is, if you're already wildly successful. The One Big Beautiful Bill Act will permanently extend and enhance tax breaks for some businesses through the Section 199A Qualified Business Income (QBI) deduction. Originally introduced by the 2017 Tax Cuts and Jobs Act and set to expire at the end of 2025, QBI currently allows 'pass-through' businesses, which include sole proprietors, freelancers, contractors and gig-economy workers, to deduct up to 20% of qualified business income from their taxes. With the passing of the One Big Beautiful Bill, that deduction will rise to 23% starting in 2026 and lock the elevated rate in permanently. It also updates the phase-out rules, tweaking income thresholds, so that higher earners, including specified trades like lawyers and lobbyists, may benefit more than before. The tax break will benefit high-income individuals, doing little for low- and moderate-income workers. These are the demographics that will qualify for QBI deductions: Pass-through businesses and gig workers: Applies to sole proprietors, freelancers, gig economy workers, partnerships, S-corps and some trusts and estates The increase to a 23% deduction means more of your eligible business income is tax-free High-earner professionals, or specified service trade or business (SSTBs): Under current rules for single filers, the QBI deduction begins to phase out when your taxable income exceeds $197,300. If your taxable income surpasses $247,300, you will not be eligible for QBI deductions. As a married-joint filer, the phase-out starts at a taxable income of $494,600. The deduction is eliminated if your taxable income exceeds $494,600. As phase-outs are recalibrated, higher-income pass-throughs, including specified service trades, can still qualify for partial or full reduction. A 2023 Tax Policy Center report estimated that the top 1% of taxpayers received 57% of U.S pass-through business income in 2022. Business income accounted for 24% of the top 1% of taxpayers' total adjusted gross income (AGI), compared to 8.6% of AGI across all taxpayers. This means that most QBI benefits will flow to those already earning the most. Since QBI is a tax deduction, its value rises with your tax rate. A $1,000 deduction saves $370 for someone in the 37% bracket but only $150 for someone in the 15% bracket. As a result, high earners receive more than double the benefit of lower earners. QBI income is also far more common among the rich, according to the Center on Budget and Policy Priorities. High-income individuals are over 50 times more likely to have partnership income than those in the bottom 50%. Low-income households more often have W-2 wages or rely on public assistance, earning little to no QBI. Most of all, complexity, compliance and financial jargon discourage smaller filers from claiming QBI. Many business owners miss out simply because they aren't aware the benefit exists or lack professional tax help. Additionally, economists, including those from the Treasury and Federal Reserve, have found no evidence that the tax deduction has led to additional growth in the business market, including down-the-road investment, job growth or higher wages for employees of pass-through businesses. Track your QBI carefully : Understand which income qualifies. Make sure your business is structured to maximize eligible business income. : Understand which income qualifies. Make sure your business is structured to maximize eligible business income. Optimize your business structure : For higher-income SSTBs, consult your CPA or tax advisor about how the revised phase-out and SALT (state and local tax) workaround changes apply to you. : For higher-income SSTBs, consult your CPA or tax advisor about how the revised phase-out and SALT (state and local tax) workaround changes apply to you. Monitor income thresholds : Be aware of phase-in AGI limits and consider timing income or deductions to stay within favorable ranges. : Be aware of phase-in AGI limits and consider timing income or deductions to stay within favorable ranges. Plan for long-term deductions: Now that the deduction is permanent, set up multi-year strategies like hiring, retirement plans and incoming timing across tax years.
Yahoo
03-07-2025
- Automotive
- Yahoo
Congress approves bill unleashing major tax breaks for trucking
WASHINGTON — President Trump is expected to sign into law a giant tax and spending cuts package approved by Congress on Thursday that includes tax breaks that could significantly boost trucking industry investment. H.R. 1, nicknamed the One Big Beautiful Bill Act but opposed unanimously by Democrats, passed narrowly along party lines after a record-breaking floor speech by House Minority Leader Hakeem Jeffries, D-N.Y., that delayed the vote on the bill for almost nine hours. Chief among the tax provisions that are expected to help trucking companies grow their business is a permanent extension and enhancement of the 20% deduction for Qualified Business Income (QBI), a provision that was part of the Trump 2017 tax cuts set to expire at the end of this year. The QBI deduction allows trucking companies and other businesses that are set up as sole proprietorships, partnerships, and S corporations avoid being placed at a tax disadvantage relative to large corporations. The new QBI provision expands eligibility for the deduction and gives businesses with certain QBI levels an inflation-adjusted minimum deduction of $400. Congress also reinstated 100% bonus depreciation that now applies to qualified assets acquired after January 19, 2025, and placed in service before January 1, 2030 (2031, in some cases). The provision will allow small-business truckers to immediately deduct the full cost of those assets, a tax benefit that encourages investing in new trucks and equipment. Truck drivers could also see more take-home pay now that Congress has made permanent the individual income tax rates that were also part of the 2017 tax cut package, along with an increase in the standard deduction. A permanent extension and increase of the Estate Tax Exemption is considered another benefit for family-owned trucking companies by providing more certainty for business planning and succession. The legislation also makes it easier for new truck drivers to obtain a CDL by expanding education savings plans to cover expenses for truck driver training. The American Trucking Associations, which supported the legislation as it moved through Congress, was not immediately available to comment on final passage of the legislation. 'Enacting pro-business, pro-growth tax policies will ensure that all of those companies are able to better plan for the future, invest in their workforce and equipment, and move freight safely and efficiently,' ATA Senior Vice President of Legislative Affairs Henry Hanscom stated earlier this week. 'As the industry that moves 72% of America's freight by tonnage, and that is the sole source of freight services for more than 80% of American communities, ATA looks forward to President Trump signing this measure into law as soon as possible.' The Owner-Operator Independent Drivers Association, representing small-business truckers, was not as supportive. OOIDA had opposed several provisions that had been included in the initial version of the bill, including a $100 annual fee to access a new website to be created by FMCSA that would provide motor carrier fitness data. The provision was subsequently stripped out. OOIDA also noted that truck drivers who are voluntarily paid overtime by their employers will not be able to take advantage of the bill's much-hyped 'no tax on overtime pay' provision – which survived the final version of the bill – because only workers who are required by law to be paid overtime are eligible. The trucking industry is exempt from the overtime pay requirement. 'Unfortunately, truckers won't benefit from this key provision in the One Big Beautiful Bill,' said OOIDA President Todd Spencer in a statement. 'It's time for Congress to fix a nearly century-old oversight by passing the bipartisan GOT Truckers Act and ensure truckers are eligible for both overtime pay and the tax relief extended to other blue collar workers.' Proposed Trump tax cuts expected to be a boon for freight Analysis shows owner-operators benefiting from Trump tax cuts Lawmakers propose tax relief for truck drivers Click for more FreightWaves articles by John Gallagher. The post Congress approves bill unleashing major tax breaks for trucking appeared first on FreightWaves. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Upturn
18-06-2025
- Business
- Business Upturn
QBI Token Leads the Digital Engine of AI and Fintech Integration: Quantivision Business Institute Takes a Key Step in Global Cloud Deployment
By GlobeNewswire Published on June 18, 2025, 18:31 IST San Diego, USA, June 18, 2025 (GLOBE NEWSWIRE) — As the global financial market accelerates towards a new era of intelligence and decentralization, Quantivision Business Institute (QBI) is reshaping fintech education and asset management through forward-thinking educational concepts and technological innovation. As a pioneering institution in global fintech education, QBI officially announces that its core asset—the QBI Token—will be listed on mainstream exchanges on September 1, 2025, marking a historic step in the integration of AI and fintech. QBI Token: The Core Engine for the New Era of Intelligent Finance Launched in 2022 by QBI's founder, the QBI Token has become a key driver of the intelligent finance ecosystem due to its extensive applications in education, research, and industry collaboration. The token's price surged from an initial $0.08 to $5 by May 2025, representing a cumulative increase of over 60 times, reflecting the market's high recognition of its model and vision. On May 28, 2025, QBI officially launched its lock-up and market capitalization management plan and announced its global trading platform strategy, enhancing token liquidity and global coverage through cloud deployment, solidifying its leading position in the Web3 finance sector. Five Core Application Scenarios: Building an Integrated Ecological Loop The QBI Token is not just a payment tool; it is a comprehensive digital asset that integrates governance, research, and asset incubation, fully covering the following core scenarios: · Educational Ecosystem Development: Users can use QBI Tokens to pay for courses, boot camps, and seminars and receive token rewards upon completion of learning projects. Blockchain-based on-chain certification technology ensures global verification of degrees and achievements. Users can use QBI Tokens to pay for courses, boot camps, and seminars and receive token rewards upon completion of learning projects. Blockchain-based on-chain certification technology ensures global verification of degrees and achievements. · Community Governance and Global Alumni Interaction: Token holders can participate in DAO governance, influencing course development and resource allocation. Over 100,000 QBI alumni use tokens to co-build projects, engage in financing, and participate in QBI Club activities, creating a decentralized community network. Token holders can participate in DAO governance, influencing course development and resource allocation. Over 100,000 QBI alumni use tokens to co-build projects, engage in financing, and participate in QBI Club activities, creating a decentralized community network. · Supporting AI Trading and Research Innovation: QBI Tokens fund AI strategy development and upgrades to the MindArc 5.0 intelligent trading engine, facilitating DeFi model innovation. Researchers can exchange technical achievements for token rewards, promoting cutting-edge research implementation. QBI Tokens fund AI strategy development and upgrades to the MindArc 5.0 intelligent trading engine, facilitating DeFi model innovation. Researchers can exchange technical achievements for token rewards, promoting cutting-edge research implementation. · Assetization of Academic Achievements: Academic papers, trading strategies, and teaching content can be traded as intellectual property using tokens, empowering students and researchers to initiate on-chain project incubation and financing. Academic papers, trading strategies, and teaching content can be traded as intellectual property using tokens, empowering students and researchers to initiate on-chain project incubation and financing. · Connecting Global Fintech Resources: Tokens serve as a bridge connecting QBI with partner companies like Goldman Sachs and Google DeepMind, establishing joint laboratories and supplying high-end AI financial talent to enterprises. Tokens serve as a bridge connecting QBI with partner companies like Goldman Sachs and Google DeepMind, establishing joint laboratories and supplying high-end AI financial talent to enterprises. Technological and Ecological Advantages: Building Global Trust The QBI Token is widely popular due to its ecological design and practical applications, featuring the following significant advantages: · High Practicality: Encompassing multiple ecological scenarios in education, research, governance, and trading, trading activity increased by 50% year-on-year in 2024. · Great Growth Potential: The token's value has increased over 60 times in just three years, with lock-up and global listing plans expected to further boost its market capitalization. · Security and Compliance: Utilizing MindArc 5.0 encryption and MEV protection technology ensures transaction security, adhering to international compliance standards such as FATF, SEC, and MiCA. · Broad Ecosystem: Supported by 100,000 global alumni and partnerships with top institutions like Harvard, Stanford, and Goldman Sachs, resource integration advantages are significant. · Innovation-Driven: Testing data shows that MindArc 5.0 users achieved a weekly return of 211.20%, with total value locked (TVL) exceeding $100 million, highlighting the token's actual impact on AI innovation. The QBI Token is widely popular due to its ecological design and practical applications, featuring the following significant advantages: Looking to the Future: From Utility Token to Assetized Equity In the future, the QBI Token plans to gradually transform into an assetized token with equity attributes, opening new pathways for IPOs in the Web3 sector. QBI aims to 'give market value to every academic achievement, allowing every quantitative talent to have capital support.' Through deep integration with the AI engine MindArc 5.0, it seeks to build the infrastructure for a global AI finance ecosystem. Join QBI: Share in the Global Fintech Wave The QBI Token is not just a digital asset; it is a ticket to enter the global intelligent finance era. QBI will reshape the landscape of financial education and wealth or email [email protected] to join the QBI global ecosystem and step into the new era of intelligent finance together! Media ContactCompany Name: Quantivision Business Institute (QBI)Contact: Neill AldridgeWebsite: Email: [email protected] Disclaimer: The information provided in this press release is not a solicitation for investment, nor is it intended as investment advice, financial advice, or trading advice. It is strongly recommended you practice due diligence, including consultation with a professional financial advisor, before investing in or trading cryptocurrency and securities. Disclaimer: The above press release comes to you under an arrangement with GlobeNewswire. Business Upturn takes no editorial responsibility for the same. Ahmedabad Plane Crash GlobeNewswire provides press release distribution services globally, with substantial operations in North America and Europe.
Entrepreneur
17-06-2025
- Business
- Entrepreneur
Why New Tax Rules Could Be a Game Changer for Your Business
With the One Big Beautiful Bill Act making its way through Congress, entrepreneurs need to be ready for significant tax policy changes. Opinions expressed by Entrepreneur contributors are their own. No entrepreneur wants a surprise tax bill — especially when every dollar matters for growth. Staying ahead of tax policy changes is one of the smartest ways to protect your bottom line and avoid disruptions. With the Senate now reviewing the One Big Beautiful Bill Act, Congress is moving closer to enacting one of the most significant shifts in U.S. tax policy in recent history. If passed, the legislation would expand — and in many cases, strengthen — existing incentives for entrepreneurs to reinvest in equipment, hire more staff, and scale with confidence. Here's what's coming — and how you can position your business for what's next. Related: 4 Tax Strategies Every High-Earning Entrepreneur Needs to Know for 2025 The government wants you to invest in your business — now more than ever The 2017 Tax Cuts and Jobs Act (TCJA) brought sweeping changes to the tax code, many of which aimed to boost business investment. But those provisions were set to expire by the end of this year. The new House bill extends and enhances several of those benefits. One major update? The Qualified Business Income (QBI) deduction gives many sole proprietors, partnerships, S corporations, and some trusts and estates a tax break. Under the TCJA, that deduction was 20%. The new legislation would increase it to 23% and make it permanent, putting more cash directly into the hands of small business owners. Another key change: entrepreneurs could again deduct domestic R&D expenses immediately, restoring a popular provision that had expired. While this update would only run from 2025 through 2029, it marks a meaningful shift. Countries like South Africa and Singapore already offer enhanced R&D deductions of 150% to 400% — this change helps U.S. businesses stay globally competitive. The bill also brings back full bonus depreciation, allowing businesses to deduct 100% of qualifying assets like equipment, software, and property at the time of purchase. That means you won't need to spread deductions out over time — you get the full benefit upfront. The government is shifting what it wants you to invest in Governments shape economic behavior through tax policy. In recent years, U.S. incentives have focused heavily on renewable energy and emissions reduction. Business owners have used tax credits to install solar panels or invest in electric vehicles at lower costs. But the One Big Beautiful Bill Act, backed by the Trump administration and a Republican-led Congress, signals a pivot. Incentives are shifting toward American manufacturing and domestic fossil fuel production. That means it's time to reexamine your tax strategy. If you've invested in green initiatives — or plan to — you'll want to understand how these new priorities could affect your bottom line. For example, while EV tax breaks may fade, the bill introduces a new $10,000 deduction on loans for vehicles assembled in the U.S. Make sure your strategy aligns with these evolving incentives. Personal tax changes will impact you and your employees The bill also raises the standard deduction to $16,000 for individual filers and $32,000 for joint filers — up by $1,000 and $2,000, respectively. That's welcome news for many employees and for entrepreneurs who don't itemize. Seniors get an even better break. The legislation includes a temporary $4,000 bonus deduction for individuals over 65 with a modified AGI under $75,000 (or $150,000 for joint filers). However, that bonus expires in 2028. If you live in a high-tax state, you'll want to note the changes to the SALT deduction (state and local tax). The current $10,000 cap would jump to $40,000 in 2025 for households earning under $500,000 and gradually increase through 2033. Above that threshold, the deduction phases out entirely. There are also proposed exemptions for tips and overtime pay, which could change how you approach payroll and compensation. These details are worth discussing with a tax advisor to ensure you're optimizing for both compliance and competitive hiring. Related: 4 Tax Tips That Will Give Your Business an Edge and Save You Money in 2025 Thinking of starting a business? Now may be the best time The U.S. has a long tradition of using tax policy to support entrepreneurship, and this bill continues that legacy. If you've been sitting on a business idea, the new provisions could help you get started with lower upfront costs and stronger long-term incentives. At the end of the day, every dollar saved on taxes is a dollar you can reinvest — whether in talent, technology, or new offerings. Smart planning now will ensure your business is ready for what's ahead.
