Introduction
Trump’s 2025 tax proposal offers a range of incentives for businesses from extended deductions to lower compliance burdens and strategic credit enhancements. Whether you’re running a startup, small LLC, or a multi-state C-Corp, the proposed changes could have a material effect on your net income, tax liability, and growth strategy.
This blog unpacks the most important business provisions in Trump’s tax plan, referencing relevant IRC codes, forms, planning examples, and steps to prepare for 2025.
Key Business-Related Provisions (IRC References)
- IRC §199A – Retains and may expand the Qualified Business Income (QBI) deduction
- IRC §168(k) – Allows full bonus depreciation on capital assets
- IRC §179 – Potential increase in the immediate expensing limit for business equipment
- IRC §11 – Corporate tax rate remains flat at 21%, with possible future reduction
- IRC §41 – More accessible R&D tax credits for startups and small businesses
- IRC §274 – Updates to meals and fringe benefit deductions
IRS Forms for Business Tax Reporting
- Form 1120 / 1120S / 1065 – Based on business structure
- Form 8995 / 8995-A – To claim QBI deduction
- Form 4562 – For Section 179 and bonus depreciation
- Form 6765 – For claiming R&D tax credit
- Form 941 – Payroll tax return, relevant for credit offsets and retention benefits
Example Scenario
Case: Sarah owns a California-based consulting LLC taxed as an S-Corp
- Net business income: $180,000
- Salaries: $80,000
- Equipment purchased: $50,000
- QBI eligible: Yes (under §199A)
- Bonus depreciation applied on equipment
- R&D for client portal development claimed under §41
Estimated tax benefits (QBI + depreciation + credits): $28,000 in federal tax savings
Major Benefits for Businesses
- QBI Deduction (20%)
Pass-through entities like S-Corps, LLCs, and sole proprietors get 20% off qualified net income.
- Full Equipment Write-Offs
Capital assets like machinery, software, and office furniture can be immediately deducted.
- No Corporate Rate Increase
C-Corps continue benefiting from the 21% flat rate (IRC §11), helpful for retained earnings.
- Startup R&D Credits
Simplified eligibility and refund offsets for early-stage tech and product businesses.
- Workforce Incentives
Possible expansion of payroll-based credits to support U.S. hiring and retention.
Step-by-Step Compliance Guide
- Classify Your Business Correctly – LLC vs. S-Corp vs. C-Corp matters for QBI and rates
- Track Capital Expenditures – Use Form 4562 to capture depreciation/expensing
- Use Form 8995/8995-A – For eligible QBI deduction calculations
- Maintain Payroll Accuracy – To qualify for potential hiring or R&D-related credits
- Plan Your Tax Year Strategically – Defer income or accelerate expenses based on projected liability
- Work With a CPA – To handle complex multi-form coordination and ensure full compliance
Conclusion
Trump’s 2025 tax plan introduces powerful tax breaks for businesses that act strategically. Whether you’re scaling a startup or managing a profitable S-Corp, the opportunities to reduce your effective tax rate, claim credits, and deduct assets have never been stronger.
Call to Action
Is your business ready to capitalize on the 2025 tax law?
QBI deductions, asset expensing, and expanded credits are available but only if you have the right structure and compliance strategy in place.
Get expert help with:
- Entity structure and QBI review
- R&D credit qualification
- Equipment expensing and depreciation
- Full compliance for IRS business forms
Schedule a meeting with Anshul Goyal, CPA, EA, FCA
About Our CPA
Anshul Goyal, CPA, EA, FCA, is a U.S.-licensed Certified Public Accountant and Enrolled Agent. He specializes in business taxation, startup finance, cross-border planning, and IRS compliance for U.S.-based and foreign-owned businesses.
Disclaimer
This blog is intended for educational purposes only. Tax law is subject to change and every business has unique considerations. Always consult a licensed CPA before implementing tax strategies.