The New Tax Law's Winners, Losers, And Surprises
Everyone's either celebrating or panicking about the "One Big Beautiful Bill" based on headlines.
But here's the problem: Politicians are spinning. Media's oversimplifying. And you're stuck trying to figure out what actually affects your tax situation.
I spent 6 hours this weekend running my numbers through 21 different tax opportunities—everything from the new tip deductions to business depreciation changes to expiring energy credits.
Reality? It's a mixed bag with some genuine surprises.
Most people are making decisions based on incomplete information. You're either missing out on real opportunities or stressing about changes that barely move your needle.
In this newsletter, you'll discover:
Six brand-new deductions (and who they actually help)
Enhanced strategies that just got permanently better
Three valuable credits expiring this year—act now or lose thousands
The massive tax increase we avoided (and why it doesn't "feel" like winning)
What fundamentals still work regardless of new laws
The real bottom line (minus the political noise)
Let’s get into it.
New Opportunities (Temporary Through 2028)
The new tax bill created six brand-new deductions that didn't exist before.
But here's what the headlines won't tell you: Most don't apply to business owners or high earners.
I was hoping there'd be some creative way to make this work for my salary and business income. Nope.
No Tax on Tips
If you earn tips at work, you might be able to deduct them from your taxable income. Think servers, bartenders, hairstylists—people who get cash tips or tips on credit cards.
I looked into this hoping to find some loophole for business income, but no dice.
Benefit: Up to $25,000 deduction
Income limits: Phases out $150,000 single/$300,000 married
Reality check: Business owners can't use this trick
Who wins: Service workers could save thousands annually
No Tax on Overtime
If you're a W-2 employee who works overtime, you might not have to pay taxes on those extra hours. That nurse picking up weekend shifts? This could be huge.
But if you're a business owner trying to call your regular pay "overtime," forget it.
Benefit: Up to $12,500 single/$25,000 married deduction
Example: Nurse earning extra $12,500 saves could save roughly $3,000 annually in the 24% bracket
Reality check: Can't convert business owner wages to "overtime"
Car Loan Interest
You can now deduct the interest you pay on a car loan, but only if you buy a new car in 2025 or later.
My 2023 purchase doesn't qualify.
Plus, it has to be built in America, not just an American brand. And if you're thinking about refinancing an older loan to get this benefit, forget it.
Benefit: Up to $10,000 deduction for 2025+ purchases only
Vehicles: New cars only, US-assembled (check actual manufacturing, not brand)
Refinancing: Only qualifies if refinancing a new 2025+ purchase
Income limits: Phases out $100,000 single/$200,000 married
Senior Deduction (Age 65+)
If you're 65 or older, you get an extra deduction on top of the standard deduction.
Despite the headlines, this isn't "no tax on Social Security." It's just an additional break that might eliminate your taxes depending on your income.
Here's the reality check: If you've done a good job saving for retirement and have a pension, this may not help you.
The deduction disappears as your income goes up.
So if you're pulling from 401(k)s, taking required minimum distributions, or receiving pension payments, you'll likely earn too much to qualify.
Translation: You'll still pay taxes on your Social Security and get zero benefit from this "senior bonus."
Benefit: $6,000 per person ($12,000 married) in addition to standard deduction
Income limits: Reduces 6% for every $1,000 over $75,000 single/$150,000 married
Timeline: Effective through 2028
Reality: Successful retirees with pensions and RMDs may not get this dedcution
Trump Accounts
These are like 529 plans but for any purpose, not just education. The government puts in $1,000 when your baby is born, and you can contribute $5,000 annually.
But here's the taxation breakdown that makes them less appealing than you'd think. How they work compared to accounts you know:
Contributions: After-tax dollars (like Roth IRA)
Growth: Tax-deferred (like any retirement account)
Withdrawals: Long-term capital gains rate for college/business/first home, otherwise ordinary income rates plus 10% penalty
Why I'm not excited personally: A regular taxable brokerage account gives me long-term capital gains rates on everything with full liquidity.
Trump accounts lock up money until 18 and only give preferential rates for specific uses.
But there's a business angle that could makes sense:
Having my business contribute for employees' children. The business gets a $2,500 tax deduction per child, and the employee doesn't pay tax on it. Need to research this more in the months ahead.
Charitable Deduction for Non-Itemizers
Finally, something that helps me directly.
If you give to charity but take the standard deduction, you'll be able to deduct those donations starting in 2026. I give $2,000 a year but couldn't write it off before.
Benefit: Can deduct charitable giving without itemizing (starts 2026)
My impact: $2,000 annual giving saves roughly $480 at 24% bracket
Perfect for: Standard deduction filers who give to charity
New Opportunities Bottom Line:
These sound exciting but have narrow applications.
While those new deductions might not help most of us, existing strategies that were already available just got significantly better.
Enhanced Strategies (Permanent Changes)
Three existing strategies received major upgrades.
Not life-changing individually, but they add up—especially if you live in a high-tax state.
SALT Deduction Expansion
If you live somewhere with high State And Local Taxes (SALT), you can now deduct way more than before.
I pay $16,000 in state and local taxes, so I can deduct $6,000 more than I could last year.
For families in places like California or New York, this could mean thousands in savings.
New limits: $40,000 (up from $10,000)
Phase-out: Starts at $500,000 income, back to $10,000 deduction by $600,000 income
My situation: Pay $16,000 state/local taxes = $6,000 more I can deduct by itemizing
My savings: Pushes me $1,500 above standard deduction = $360 benefit
Big winners: High-tax state families could save thousands
Child Tax Credit Increase
If you have kids under 17, you get a little more money back per child.
I have three qualifying kids, so this puts an extra $600 in my pocket. It's not huge, but it's permanent and will grow with inflation.
New amount: $2,200 per child (up from $2,000)
Status: Now permanent and inflation-adjusted
Dependent Care FSA Increase
If you're a W-2 employee paying for childcare, you can now set aside more money tax-free to cover those costs.
I can't use this because of how my business is set up, but W-2 employees get a nice bump.
New limit: $7,500 (up from $5,000) for W-2 employees
My restriction: Can't use as S-Corp owner (over 2% shareholder rule)
W-2 benefit: Extra $2,500 saves 24% bracket family $600 annually
Enhanced Strategies Bottom Line:
Every bit helps, but don't expect these to revolutionize your tax situation.
Now here's the urgent stuff. Three valuable credits are disappearing this year, and you need to act fast if you want them.
Expiring Credits (Act by December 2025)
Three valuable tax credits expire this year with zero extensions.
I'm accelerating my HVAC project from 2027 just to capture one of these before they disappear.
Energy-Efficient Home Improvements
If you've been putting off upgrading your home's energy efficiency, now's the time.
These credits cover everything from new windows to heat pumps. My HVAC system's been acting up anyway, so I moved my timeline up two years to grab this credit before it vanishes.
Qualifying items: Heat pumps, windows, insulation, EV chargers, water heaters, biomass systems
My situation: HVAC having issues anyway—moving timeline up two years
Deadline: 6 months left (expires December 31, 2025)
Residential Clean Energy Credit
If you've been thinking about solar panels, this is your last chance to get 30% back from Uncle Sam.
I'm not planning solar personally, but if it was on your radar, that credit disappears forever after this year.
Benefit: 30% credit for solar installations
Example: $30,000 solar system = $9,000 credit
My take: Not planning solar, but this credit vanishes forever in 2026
Deadline: 6 months left (expires December 31, 2025)
Electric Vehicle Credits
Thinking about going electric? You've got just a few months left to get up to $7,500 back on a new EV.
I'm not in the market myself, but the clock's really ticking on this one.
Benefits: $7,500 new/$4,000 used
Income limits: $150,000 single/$300,000 married (new), $75,000/$150,000 (used)
My situation: Not in the market, but deadline approaching fast
Deadline: 3 months left (expires September 30, 2025)
Expiring Credits Bottom Line:
The IRS isn't going to extend on these credits. If any were on your radar, here's what to do this week:
Energy projects: Get 3 contractor quotes by August 1st
Solar: Contact installers now—lead times are 8-12 weeks
EVs: Visit dealerships by Labor Day to avoid September rush
But here's something that doesn't require any action on your part—and it's actually the biggest benefit in the entire bill.
The Invisible Massive Win
Here's the biggest benefit nobody's talking about: We avoided a personal tax disaster.
Without this bill, tax rates were set to jump dramatically in 2026:
12% → 15%
22% → 25%
24% → 28%
32% → 33%
37% → 39.6%
A married couple with $300,000 income stays in the 24% bracket instead of jumping up. That's roughly $12,000 they're not paying.
Think about it this way: That family earning $300,000 was facing an extra $12,000 annual tax bill starting January 1st. That could be the equivalent of
A few mortgage payments
A top tier family vacation
A year of groceries
The bill prevented that hit without you having to do anything.
This doesn't "feel" like winning because nothing changed for 2025. But tax rates staying put prevented a 17% increase for me.
For business owners, there's even more good news with permanent improvements.
Business Owners Got Permanent Wins
Three major business tax strategies became permanent.
These provide long-term planning certainty for consultants, real estate investors, and S-Corp owners.
Section 179 Expensing Expansion
The amount you can immediately write off for business purchases just got way bigger.
Even if you don't have major equipment needs like me, the limits jumped so dramatically that most small businesses will never hit them.
This works hand-in-hand with bonus depreciation for maximum tax benefits.
New limits: $2,500,000 (up from $1,000,000)
Phase-out: $4,000,000 (up from $2,500,000)
My situation: No major equipment purchases planned, but limits jumped dramatically
Strategy: Use Section 179 up to limits, then bonus depreciation for remainder
Bonus Depreciation Permanent
If you buy equipment, vehicles, or do build-outs for your business, you can write off the entire cost immediately instead of spreading it over several years.
Combined with the expanded Section 179 limits above, this creates maximum write-off opportunities for any business investment.
Benefit: 100% immediate write-off (was phasing to zero)
Applies to: Equipment, vehicles, build-outs
Works with: Section 179 for comprehensive tax planning
My situation: Don't have qualifying assets right now, but this removes uncertainty
QBI Deduction Permanent
If you run a pass-through business (S-Corp, LLC, partnership), you can deduct 20% of your business income.
I already get a nice benefit from this, and now it's permanent with better income limits. No more worrying about it expiring.
Benefit: 20% deduction for pass-through income
Phase-out: Wider ranges than before
My situation: Get nice QBI benefit currently—stays exactly the same
Bottom Line for Business Owners:
If you run a business, these changes remove uncertainty and improve cash flow planning.
But whether you're a business owner or not, remember that the fundamentals haven't changed.
What Still Works (Don't Overthink This)
The fundamentals haven't changed.
Tax laws come and go, but the basics that build wealth remain constant.
What I'm still doing:
Save into 529 plans
Max out 401(k)
Tax-loss harvest annually
Use Direct Indexing for tax efficiency
Use HSA when eligible
Hold investments longer than one year
Politicians love to claim their bill is "historic" or "revolutionary." Reality? Most wealth-building happens through consistent execution of boring strategies.
New laws create opportunities around the edges. But they don't replace the fundamentals that actually move your financial needle.
That's It.
So what's the real impact after all that analysis?
Democrats say this only makes the wealthy wealthier. Republicans call it the most monumental tax bill in history. Both are wrong.
The reality is messier and more personal.
Some families in high-tax states save thousands. Others get nothing. A few new deductions help narrow groups. Expiring credits create artificial urgency. And the biggest benefit—avoiding brutal tax increases—feels invisible because nothing changed.
But here's what I learned spending 6 hours in the weeds: The wealthy don't get lucky with taxes. They get informed, they plan, and they act when opportunities appear.
Your three moves right now:
This week: Call your CPA and forward them this analysis
This month: If you're planning energy improvements or an EV purchase, accelerate your timeline
Before December: Max out any expiring credits that actually apply to your situation and stick to the fundamentals
Everyone else will keep celebrating or panicking based on headlines. You'll be focused on what actually moves your financial needle.
Thanks for reading. See you next week.
Whenever you're ready, there are 2 other ways we can help you:
30-Day Strategy Sprint: Got a specific financial challenge holding you back? In just 30 days, we'll tackle 1-3 of your biggest money roadblocks and hand you a personalized action plan. Perfect if you want expert guidance without a long-term commitment. Limited spots available.
Ongoing Wealth Partnership: We'll work with you month after month to slash your taxes, find hidden income opportunities, and build lasting wealth. You set the life goals. We handle the financial strategy to get you there faster.
Opulus, LLC (“Opulus”) is a registered investment advisor in Pennsylvania and other jurisdictions where exempted. Registration as an investment advisor does not imply any specific level of skill or training.
The content of this newsletter is for informational purposes only and does not constitute financial, tax, legal, or accounting advice. It is not an offer or solicitation to buy or sell any securities or investments, nor does it endorse any specific company, security, or investment strategy. Readers should not rely on this content as the sole basis for any investment or financial decisions.
Past performance is not indicative of future results. Investing involves risks, including the potential loss of principal. There is no guarantee that any investment strategies discussed will result in profits or avoid losses.
All information is provided "as-is" without any warranties, express or implied. Opulus does not warrant the accuracy, completeness, or reliability of the information presented. Opinions expressed are those of the authors, Ryan Greiser and Francis Walsh, and are subject to change without notice.
Opulus is not responsible for any errors or omissions, nor for any direct, indirect, or consequential damages resulting from the use or reliance on this information. Use of the content is at your own risk. This content is not intended as an offer or solicitation in any jurisdiction where such an offer or solicitation would be illegal.