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.
Fiscal year-end filers with assets acquired after January 19, 2025 can retroactively apply this 100% bonus depreciation. The following updates are now available in UltraTax CS to reflect this change:
- Platform version 2024.3.6**
- Exempt/990-US version 2024.3.3
- Fiduciary/1041-US version 2024.3.6
- Partnership/1065-US version 2024.3.2
- Corporation/1120-US version 2024.3.7
important
**When you first open a client after installing the platform 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 module and select .
Tax Projection Worksheet
1040-US version 2024.3.6 includes updates to the Tax Projection Worksheet to account for the OBBBA provisions. The 1040-US v.24.3.6 User Bulletin gives you details of the changes made to the Tax Projection Worksheet.
Data mining
The OBBBA changed the way tax is calculated for 2025. The IRS recommends everyone do a quick “paycheck checkup” using their Tax Withholding Estimator to make sure their withholding is still correct.
UltraTax CS Data Mining makes it easy to help your clients adjust to these changes.
- With the most recent UltraTax CS updates, use theFiscal year client with special depreciationsearch to find affected clients.
- Use the prewrittenIRS Withholding Estimatorletter to let clients know that, because of OOBA, they may need to update their tax withholding. It also explains how to use the IRS tool, gives guidance if a new W-4 is needed, and includes your firm’s contact info.
- Use theFederal Withholding - No W4search helps you find clients who have withholding but no Form W-4 prepared.
- Use theSch A State and Local Taxes (SALT) Limitedsearch finds clients that itemized and had SALT limited on their 2024 return.
- Use theSch A State and Local Taxes (SALT) Limited Next Yearsearch finds clients that are projected to itemize in 2025 with SALT limited by the OBBBA $40,000 limit ($20,000 for MFS).
- There are Qualified Business Income Deduction (QBID) searches likeQBID - Current Year and Next Year,QBID - Form 8995 Simplified Computation, and many more.
- You can send customized letters or emails about the OBBBA changes and offer helpful services like tax planning, reminders, and more.
To get started, open UltraTax CS and go to . Refer to Building Data Mining searches for steps on how to search a client database, or Data Mining examples to help familiarize yourself with ways you can use it.
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.
