It’s hard enough to understand the United States’ tax code, let along the modifications engendered by President Donald J. Trump’s One Big Beautiful Bill, signed into law on July 4. The bill is not without its controversy, with critics saying it cuts deeply into such safety net programs as Medicaid, the Supplemental Nutrition Assistance Program (SNAP) and housing assistance.
Recently, Citrin Cooperman – a premier accounting and advisory provider for private, middle-market businesses and high net-worth individuals that’s headquartered in Manhattan – held a webinar on the bill. With more than 3,300 professionals, Citrin Cooperman is recognized for being among the fastest-growing top 20 American firms. On Tuesday, Aug. 12, Citrin Cooperman announced that it has entered into an agreement to acquire substantially all the assets of Barkin, Perren, Schwager & Dola, LLP (BPSD), a full-service accounting and advisory firm in Woodland Hills, California.
Matthew Kuchinsky — managing partner, White Plains and Connecticut offices, Citrin Cooperman Advisors LLC; and partner, Citrin Cooperman & Co. LLP – took time to answer our questions:
- Mr. Kuchinsky, thank you for your time. Aren’t the tax cuts in the One Big, Beautiful Bill actually a continuation of the 2017 tax cuts?
“Largely, yes. Many of the individual and small business rate cuts were set to expire after 2025, and this bill keeps them alive. But it’s not a carbon copy. There are adjustments, new thresholds and some targeted add-ons that go beyond what 2017 delivered.”
- What’s in this for the individual filer, joint filers and families?
“Lower rates stick around, and the standard deduction stays elevated. Married couples keep the higher joint-filer brackets. Families in the low-to-middle-income range see more refundable credit potential.”
- What’s in this for small businesses and corporations?
“Small businesses operating as pass-through entities retain the 20% qualified business income deduction, which acts as a buffer against higher effective rates. The bill extends immediate expensing under bonus depreciation rules, allowing 100% write-offs of qualifying equipment and certain improvements in the year placed in service. It also increases and indexes the Section 179 expensing limit, which is a separate provision that lets businesses deduct the cost of certain property (often smaller-scale purchases).
“In addition, corporations keep the 21% federal rate, with some international tax changes designed to keep more profits taxed in the U.S. rather than shifted offshore. There’s also an expansion of the qualified small business stock (QSBS) rules, adding new but smaller exclusions for QSBS held for shorter periods. That effectively broadens the benefit beyond the traditional five-year holding period, though the biggest tax break still goes to longer-term holders.”
- When do the tax cuts kick in?
“Most start Jan. 1, 2026, right when the 2017 provisions would have sunsetted. A few targeted provisions, like certain disaster relief rules, start earlier.”
- What are some of the new perks, particularly for hospitality workers and seniors?
“For hospitality workers, the bill refines tip income rules to exclude more pooled or shared tip-outs from payroll tax calculations, reducing tax for workers who participate in tip-sharing arrangements. For seniors, there’s a temporary $6,000 additional standard deduction providing relief for many older taxpayers during the years it applies, but it does begin to phase out at higher income levels.”
- Are there any tax cuts that have gone away?
“Yes. Most notably, there’s a clawback of certain energy-related credits that were enacted in the Inflation Reduction Act. Some credits are reduced or eligibility narrowed for projects not already under construction. This affects certain renewable energy property and clean vehicle incentives and creates a shorter runway for taxpayers who had planned multiyear projects.”
- Is there any increase in the amount of money property owners can deduct from their income taxes?
“For many property owners in high-tax states, the answer is yes. Because property taxes often make up the largest share of state and local taxes paid, the expanded SALT cap can translate directly into bigger deductions for those owning real estate. The new rules temporarily raise the cap from $10,000 to $40,000, giving homeowners much more room to deduct the full amount of their property taxes along with other state and local taxes. While the higher cap begins to taper off for top earners, most property owners will still see a noticeable bump in their allowable deduction during the years it applies.”
- Based on the new bill, what should the average person’s/business owner’s strategy be in filing year-end?
“The right answer really depends on the taxpayer’s facts. Rates remain lower in 2026 than they would have been without the bill, so there’s less urgency to accelerate income into 2025 to avoid a rate hike. However, there may be other reasons to do so, like locking in credits before they sunset or leveraging losses while they can still offset higher-rate income. Businesses should revisit project timelines, depreciation schedules and financing structures in light of the extended expensing rules and energy credit changes.”
- Don’t the tax cuts add roughly $5 trillion to the deficit, so won’t that hurt taxpayers in the long run?
“It really depends on your perspective. Supporters argue the economic growth will offset part of the cost. Critics say the debt impact is inevitable. The math will play out over time.”
- With the loss of thousands of federal employees, can taxpayers still expect to receive information and refunds from the Internal Revenue Service (IRS) in a timely manner?
“The IRS is full of skilled, dedicated public servants and, in our experience, the system is holding up well so far. That said, if staffing reductions continue, taxpayer service could eventually suffer, especially in peak filing periods or for complex cases requiring human review.”
(Editor’s note: Since this interview was conducted, Billy Long, the sixth commissioner of the Internal Revenue Service this year, announced he was leaving the post. Treasury Secretary Scott Bessent is serving as acting commissioner.)
