Part 8/11:
This marginal system means income is taxed at increasing rates across different brackets, benefitting many middle-income taxpayers through lower rates and higher thresholds.
For Business Owners and Corporations:
Section 179 100% Deduction: Businesses can now write off 100% of qualifying capital expenditures, such as machinery or even luxury vehicles over 6,000 pounds (like a G Wagon), in the year of purchase. The government even entertains lavish examples, such as deducting the full cost of a plane, if used for business purposes.
Qualified Business Income (QBI) Deduction: The 20% deduction on qualified business income has been made permanent, allowing small business owners to reduce taxable income by 20% on profits, subject to certain income limits.