See the full article in The Scottsdale Progress here: http://cleardirectioninvestments.com/wp-content/uploads/2025/07/Scottsdale-Progress-story.pdf
A Scottsdale asset manager says business owners “will see a significant benefit from the passage of the One Big Beautiful Bill Act” signed by President Trump July 4.
Randy Stoltz, founder and lead advisor for Clear Direction Investments, says U.S. business owners called the law a “gamechanger” for business owners and real estate investors.
“From enhanced deductions to expanded estate planning tools, the OBBBA has delivered a financial blueprint that rewards entrepreneurship, long-term investment, and strategic tax planning,” Stoltz said.
“It’s one of the most advantageous pieces of legislation for business owners in recent memory.”
Among the measure’s highlights, he said, is the Enhanced Qualified Business Income (QBI) deduction.
“At the center of the OBBBA is a significant increase in the Qualified Business Income (QBI) deduction for pass-through business owners. Married filers now enjoy up to a $150,000 up from $100,000.
“This means most business owners earning $300,000 in qualified income may paytaxes on only $240,000 – a 20% reduction.”
The law also expands bonus depreciation, restoring for qualified properties the 100% “expense during year one” for items like machinery and equipment. It was going to be only 40% and declining.
“This opens the door for savvy tax strategies, including Roth conversions during high-deduction years, to optimize tax efficiency for the rest of an investor’s life,” Stoltz added.
When it comes to Roth conversions and retirement planning the Scottsdale asset manager emphasized the strategic timing for Roth conversions during what he refers to as the “calm before the RMD storm” – the years between retirement and the age at which required minimum distributions begin.
With RMDs now delayed until age 73 or 75 (depending on birth year), “business owners have more flexibility to shift pretax retirement assets into tax-free Roth accounts,” Stoltz said.
“Roth accounts not only grow tax-free but also eliminate future RMDs, making them ideal for both retirement income and legacy planning,” Stoltz explained. H
e added that for real estate investors, the law preserved and enhanced tax-deferral tools.
And, he added, “we still have cost segregation and accelerated depreciation to allow investors to frontload deductions in the early years of property ownership.
When offset with other taxable events, it may pay off handsomely long term.”
“I personally completed a $5,000 cost segregation analysis that resulted in over $150,000 in deductions in my first year owning an investment property,” Stoltz shared. “It’s one of the most powerful tax tools real estate owners have at their disposal.”
The OBBBA also permanently raised the federal gift and estate tax exemption to $15 million per individual, or $30 million per married couple, which he called “a critical increase from the previous $14 million figure and a safeguard against potential rollbacks to $7 million.”
Recent Comments