The New 2025 Trump Tax Law: What It Means for Central Texas Business Owners and High-Income Earners

Reza Farahani
Jul 21
3 min read

Updated: Sep 25

New Tax Law Brings Big Changes — What You Need to Know in Central Texas

In July 2025, a sweeping federal tax reform was signed into law. While national in scope, the implications hit close to home—especially for business owners, real estate investors, and high‑income earners across Central Texas.

At Farahani CPA, based in Liberty Hill and serving clients in Leander, Georgetown, and Cedar Park, we help you stay ahead of tax changes and make smarter financial decisions. Here’s a breakdown of what’s changed—and how it may affect your 2025 tax planning.

Key Tax Changes at a Glance

Lower individual tax rates are now permanent.
- The seven tax brackets (10%, 12%, 22%, 24%, 32%, 35% and 37%) will no longer revert to pre‑2017 levels.
Standard deduction increased permanently.
- New 2025 amounts: $15,750 (Single/MFS), $23,625 (Head of Household), $31,500 (MFJ).
The SALT deduction cap increased.
- The cap rises from $10,000 to $40,000 through 2029 (with slight annual increases STARTING IN 2027), then returns to $10,000 in 2030. A phase‑out begins at $500,000 of MAGI in 2025.
20% QBI deduction is now permanent.
- Pass‑through businesses can continue to deduct 20% of qualified business income.
100% bonus depreciation reinstated.
- Businesses can fully deduct qualifying assets in the year they’re placed in service.
Estate tax exemption rises to $15 million per person.
Indexed for inflation from 2026 onward.
Charitable deductions face a new floor.
Deductions only count once contributions exceed 0.5% of AGI.

What Business Owners Should Know About the Trump Tax Law

QBI Deduction Is Here to Stay

S corporations, LLCs, and partnerships can permanently deduct 20% of qualified business income—an ongoing benefit for Central Texas service professionals and small businesses.

Full Bonus Depreciation Returns

Deduct the full cost of qualifying equipment, vehicles, and improvements immediately to strengthen cash flow and reinvest quickly.

Interest Deduction Limit Raised

A return to an EBITDA-based cap means more interest expense is deductible—good news for growing businesses that rely on financing.

What Real Estate Investors Should Know About the Trump Tax Law

SALT Deduction Cap Increased

While Texas doesn’t have state income tax, those with out‑of‑state property or high local property taxes may benefit.

100% Bonus Depreciation for Property Improvements

Cost segregation strategies are even more powerful, allowing faster write‑offs on components and personal property.

1031 Exchanges Remain Intact

You can still defer capital gains on property sales through like‑kind exchanges.

What High‑Income Individuals Should Know

Top Federal Rate Locked In at 37%

Rates won’t increase in 2026 as previously planned.

Estate Tax Exemption Raised

With $15M per person, there’s more room to transfer wealth without federal estate tax.

New Floor for Charitable Deductions

Charitable deductions must exceed 0.5% of AGI to be fully deductible—plan gifts strategically.

Additional Tax Highlights

Child Tax Credit: Increased to $2,200 per child with $1,400 refundable.
Trump Accounts: New tax‑advantaged accounts to save for education or home buying.
Tip and Overtime Deductions: Temporary deductions allowed through 2028.
Standard Deduction Changes: Beneficial for many who don’t itemize.

What This Means for Clients of Farahani CPA

Whether you’re a:

Small business owner in Central Texas
Real estate investor with growing holdings
High‑income individual looking to optimize wealth transfer

…the new Trump Tax Law offers both planning opportunities and pitfalls.

Next Steps for 2025 Tax Planning

Schedule a tax review to see how the new Trump Tax Law affects your estimated payments and deductions.
Evaluate your business structure in light of permanent QBI and corporate provisions.
Reassess your estate plan given the $15M exemption.
Time asset purchases to leverage 100% bonus depreciation.

Work With a Local CPA Who Understands Central Texas

At Farahani CPA, we don’t just crunch numbers—we provide forward‑thinking tax and financial strategies tailored to your goals. Whether you’re based in Liberty Hill, Leander, or beyond, we’re here to help you navigate these changes.

Ready to get started? Learn more about our Personal Tax Preparation, Tax Planning Services, or Business Tax Preparation today. Contact us today to schedule your personalized consultation.