Introduction
2025 is bringing a wave of tax changes that will affect how small businesses budget, report income, and claim deductions. From new federal provisions under the One Big Beautiful Bill Act to critical Florida updates, staying compliant—and taking advantage of new opportunities—will be crucial for business owners in Hollywood and Broward County. Here’s what you need to know before the year ends.
1. Federal Law Updates: One Big Beautiful Bill Act (OBBBA)
New Tip Deduction
- Starting in tax year 2025 (filed in 2026), employees and self-employed workers in certain occupations can deduct qualified tips up to $25,000. IRS+1
- There are earnings caps (e.g. $150,000 for single filers) and definitions for which jobs qualify. IRS+1
Overtime Pay Deduction
- A new deduction lets eligible workers deduct the half-time portion of overtime pay beyond their regular rate. Also effective in 2025. IRS+1
Expanded Section 179 & Bonus Depreciation
- The OBBBA restores 100% bonus depreciation for eligible business property acquired after January 19, 2025. That means many qualifying purchases can be fully expensed in the year they go into service. Landmark CPAs
- Also, Section 179 expensing threshold is increased, which helps smaller businesses investing in equipment. Landmark CPAs
2. Important Florida Law Changes Coming in 2025
Commercial Rent Tax Repeal (Business Rent Tax)
- Effective October 1, 2025, Florida will permanently repeal the sales tax on commercial real estate leases (retail, office, industrial). National Law Review+2Southern Atlantic Law Group, LLC.+2
- If your business leases property, this could lower your overhead significantly. Landlords, too, will need to update their lease agreements. Stinson+1
New / Expanded Sales Tax Holidays & Exemptions
- Florida’s 2025-26 budget (HB 7031) includes several sales tax holidays and permanent exemptions. Florida Governor’s Office+2Southern Atlantic Law Group, LLC.+2
- Exemptions now include certain safety/disaster items (generators, smoke detectors, etc.), outdoor recreation gear, and more. Southern Atlantic Law Group, LLC.+1
3. What These Changes Mean for Broward Small Businesses
| Area | What You Should Do |
|---|---|
| Leases / Rent Costs | Review any commercial lease agreements. Starting Oct 1, 2025, your rent may become tax-free (sales tax on rent) under the new law. |
| Asset Purchases & Equipment | Plan major equipment purchases now so you can take full advantage of bonus depreciation or Section 179 changes. Write off more in the first year. |
| Payroll & Tips | If part of your income comes from tips or overtime, track those carefully. You might qualify for the new deductions under federal law. |
| Tax-Planning Strategy | Consult a tax pro to update your estimates, projections, and withholdings with these changes in mind. Savings and risks both increase with legal complexity. |
4. Cautions and Things to Watch
- IRS Guidance Delays: New laws (especially around tips, overtime, depreciation) require specific IRS forms or guidance. Sometimes there’s a delay, so stay updated. ADP+1
- State vs. Federal Differences: Just because the federal government allows a deduction doesn’t mean Florida state tax law will treat it the same. Florida has no personal income tax, but sales tax and local rules still matter.
- Record-keeping is more important now. With new deductions and exemptions comes more scrutiny. Good bookkeeping (receipts, logs, clear separation of business vs personal) is essential.
Conclusion
2025 and 2026 will be years of opportunity and challenge for small businesses in Broward County. Changes in both state and federal laws mean you could save on taxes, but only if you plan ahead. Whether it’s lease agreements, equipment purchases, or how you report tips and overtime, taking action now can make a real difference.
If you’d like help reviewing your 2025 tax strategy or ensuring your business is set up to capture all of these new benefits, POS Taxes in Hollywood, FL is ready to assist.
