One Big Beautiful Bill Act (OBBBA) of 2025
The One Big Beautiful Bill Act of 2025 introduces changes to depreciation, Section 179 limits, and deductions for tips and overtime. Review the software updates and resources to help your clients comply with the new law.
On July 3, 2025, the U.S. Congress passed the One Big Beautiful Bill Act (OBBBA) of 2025, which President Trump signed into law on July 4, 2025.
Updates
Based on the 2025 One Big Beautiful Bill Act, you can now claim 100% first-year bonus depreciation for qualified property placed in service after January 19, 2025. It also updated IRS Section 168(k)(10) to let you claim 40% bonus depreciation on all applicable depreciable property types in service after January 19, 2025.
Version 2024.1.5 is now available in Fixed Assets CS. This update includes the following:
Section 179
- The maximum amount of section 179 allowed increased from $1,220,000 to $2,500,000 for tax year 2025.
- The $3,050,000 investment limitation increased to $4,000,000.
To enter section 179 expense for eligible assets, go to the Asset list window and select .
Bonus first-year depreciation
When you first open a client after installing the update, any assets acquired after January 19, 2025 that qualify for bonus depreciation will automatically calculate it at 100% instead of 40%. This will apply to all treatments that allow bonus depreciation. If you want to choose a different bonus depreciation election for a client, go to the Asset List window and select .
Resources
If you're a Thomson Reuters Checkpoint subscriber, you have exclusive access to the
Checkpoint Executive Summary: The Act of 2025
, which highlights the main provisions of the new law. You’ll also find ready-to-send legislation letters for your individual, business, and payroll clients, outlining key changes, important dates, and relevant IRC sections to help them prepare and plan for the updates.You can also check out the Thomson Reuters Tax & Accounting Resource Center. It covers topics like How the 'One Big Beautiful Bill' reshapes SALT planning, Retroactive tax law for tips and overtime demands immediate action, payroll expert cautions, and Recognizing the biggest hits and misses of OBBBA.
The IRS has a fact sheet FS-2025-03 discussing some of the new provisions for working Americans and seniors. The IRS also announced there's no changes to individual information returns or withholding tables for 2025 under OBBBA.
