What the One Big Beautiful Bill Means for Small Business Taxes
Pittsburgh + Western PA Guide to New Business Tax Provisions
By Mark Reed – Financial First-Responder & Tax Pro for Pittsburgh Entrepreneurs
If you own a business in Pittsburgh or Western Pennsylvania, the recently passed One Big Beautiful Bill (OBBB) has some big implications for your tax strategy. While the politics may get the headlines, we’re focusing on what it means for your bottom line.
This post breaks down the new and extended business tax provisions—from bonus depreciation and 199A QBI deduction extensions, to changes that affect real estate investors, contractors, and anyone paying 1099s.
Key Business Tax Changes Under the OBB
1. Bonus Depreciation Made Permanent
Equipment-heavy businesses and real estate investors, take note:
100% bonus depreciation is now permanent for qualified property (assets with a useful life of 20 years or less)
This includes assets like machinery, technology, vehicles, and even certain building components through cost segregation
For Pittsburgh contractors or property owners doing renovations, this creates major upfront deductions that reduce taxable income.
2. Section 179 Expensing: Bigger Limits
Section 179 lets you deduct equipment and software costs immediately instead of depreciating them over time. Under the new law:
The expensing limit has increased to $2.5 million annually
Still cannot create a tax loss, unlike bonus depreciation
This is ideal for profitable S Corps, LLCs, and partnerships investing in growth and needing deductions this year.
3. QBI Deduction (199A) Permanently Extended
The popular 20% Qualified Business Income (QBI) deduction for pass-through entities is no longer scheduled to expire in 2025.
Applies to most LLCs, S Corps, and sole props
Includes service businesses (finance, law, health, etc.) with expanded phaseout ranges
You can now earn up to $150,000 above the 24% tax bracket before losing full eligibility
This is huge for high-income professionals and family-owned firms in Western PA.
4. 1099 Reporting Thresholds Increased
Great news for gig workers and business owners sending out contractor payments:
The reporting threshold for 1099-NEC and 1099-MISC forms has increased from $600 to $2,000
You no longer have to issue a 1099 to every part-time helper, unless payments cross that new mark
Less paperwork. Less confusion. And less chance of mismatch notices from the IRS.
5. Third-Party Platform (Venmo, Zelle, PayPal) Reporting Threshold Restored
The $600 reporting threshold for 1099-K forms (for apps like Venmo or Stripe) has been scrapped for now
Reverts to $20,000 AND 200 transactions per year
This is especially relevant for Pittsburgh freelancers, artists, and vendors using mobile payment platforms.
6. Interest Deduction Rules Relaxed
If your business carries debt:
The IRS no longer requires depreciation and amortization to be subtracted from income in order to limit interest deductions (Section 163(j))
This means more of your interest payments may now be deductible, especially helpful for startups and capital-heavy businesses
This change benefits real estate investors, manufacturers, and growth-stage businesses with outside financing.
7. Wider Depreciation Options for Real Estate
Real estate owners in Western PA will especially appreciate:
Bonus depreciation + cost segregation = immediate write-offs for parts of a building like HVAC, flooring, lighting, etc.
Many small landlords will now qualify for massive paper losses without needing to qualify as real estate professionals
These changes align with common wealth-building strategies using leveraged real estate—popular among Western PA investors.
IRS Implementation Still Pending
While the bill is now law, several items require IRS guidance before being fully implemented:
Final details on QBI income thresholds
Coordination between Section 179 and bonus depreciation
Clarification around 1099-K thresholds for businesses using online platforms
We expect updated IRS publications and instructions to roll out in the coming months.
Why It Matters to Pittsburgh and Western PA Business Owners
Western PA entrepreneurs—especially small service providers, real estate investors, tradespeople, and self-employed professionals—stand to gain:
Larger immediate deductions
Simpler compliance (especially with 1099s)
Permanent planning opportunities with QBI and depreciation
But don’t wait for tax season—these changes create proactive planning windows now.
Final Thoughts: Plan Now, Save Later
Whether you’re running a family-owned shop in Bloomfield or managing rental properties in the South Hills, the One Big Beautiful Bill creates opportunities—but only if you know how to structure your income, purchases, and deductions.
Ready to translate the OBB into a local business tax strategy? Let’s talk.
Disclaimer: This post is for informational purposes only and does not constitute tax or legal advice. Many of the provisions described are subject to further guidance by the IRS and could change prior to full implementation.