What Trump’s Big Beautiful Tax Bill Means for Content Creators, Influencers, and Small Business Owners

Big changes are here—and they matter for your next tax return.

With the recent passing of Donald Trump’s new tax bill, there’s been a lot of buzz about what it means for business owners, content creators, and digital nomads. But don’t worry—we’ve read the bill so you don’t have to.

At BizBud, we specialize in helping content creators, influencers, small business owners, and digital nomads win at the tax game—and avoid overpaying the IRS. Below, we’ve broken down the key updates from the bill that directly impact you and your business.

Let’s dive in.

1. The 1099 Reporting Threshold Just Got a Big Bump

Old rule: If you paid a contractor more than $600, you had to issue them a 1099-NEC form at the end of the year.
New rule: That threshold has now increased to $2,000.

✅ Why this matters:
If you’re a photographer hiring a second shooter, a content creator outsourcing video editing, or a business owner paying contractors—this change reduces paperwork, stress, and potential penalties.

For example:

• Pay someone $1,500?
  No 1099 required.

This will save time and money during January filing season, and reduce your chances of non-compliance penalties. It’s a small change with a big impact.

2. Qualified Business Income (QBI) Deduction Lives On

One of the most powerful deductions for small businesses—the Qualified Business Income Deduction (QBI)—was set to phase out. Thankfully, the new bill extends it.

What is QBI?

If you're a sole proprietor, LLC owner, or S-Corp shareholder, you may qualify to deduct 20% of your net business income from your personal taxes.

Example:
Earn $50,000 in business income → Deduct $10,000 (20%)
You’ll only pay taxes on $40,000, saving potentially thousands depending on your tax bracket.

✅ Bottom line: If you’re not using this deduction, talk to your tax preparer—or talk to us. You're leaving money on the table.

3. Bonus Depreciation Is Back to 100%

Real estate investors, this one’s for you.

Under the new bill, bonus depreciation has returned to 100%—meaning you can fully deduct qualifying property in the year it’s placed in service.

What does that mean?

Let’s say you buy a rental property for $100,000 and get a cost segregation study (which breaks the property into separate components). Typically, 25–30% of the property’s value—such as cabinets, fixtures, and appliances—can be depreciated over 5, 7, or 15 years. Because these assets have a useful life under 20 years, they qualify for bonus depreciation and can be fully written off in the first year instead of being depreciated over 27.5 years. 

.✅ That means in this example you could deduct $25,000–$30,000 upfront in year one, instead of spreading it over 27.5 years.

It’s a powerful tax-saving tool for real estate investors.

4. No Federal Income Tax on Tips (Up to $25K)

This doesn’t affect everyone—but it’s a big deal if you:

• Run a salon

• Own a restaurant

• Employ staff who receive tips

Employees can now earn up to $25,000 in tips tax-free (federal income tax only). They still owe Social Security and Medicare taxes (~7.65%), but the savings are real.

🎯 Important:

• The employer must still report the full amount on the W-2.

• This phases out at $150,000 in income.

• More industries may be added to this provision in October.

Encourage tipping—it just got better for your team.

5. Other Key Highlights Worth Mentioning

While many parts of the bill target large corporations, there are a few additional provisions small business owners might benefit from:

• Trump Account for Kids: Parents can receive a $1,000 credit toward a tax-free investment account for their children.

• Qualified Small Business Stock (QSBS): If you invest in C-Corp shares and hold them for 5+ years, your gains may be 100% tax-free when sold.

• Section 179 Deduction Increased: Now up to $4 million before phaseouts—great for equipment-heavy businesses.

Final Thoughts: What Should You Do Next?

If you're a:

• Content creator

• Influencer

• Service based business owner

• Digital nomad

… these changes affect you. Some save you money. Others simplify your compliance. Either way, it’s crucial to understand and apply them correctly on your next tax return.

BizBud Can Help You Navigate These Changes

We make taxes simple for creatives, founders, and freedom-seekers. Whether you need help:

• Applying the new rules

• Maximizing deductions

• Choosing the right business structure

• Avoiding common pitfalls

👉 We’ve got your back.

📩 Reach out here to work with us
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