The Final Countdown

The rain returns to the Puget Sound, and the 4 p.m. sunsets settle in. We’re at the finish line of 2025: Welcome to the Q4 edition of Prose From the Pros. 

It’s been a year of major milestones, from launching our new identity as Seattle Accounting Professionals to navigating the “One Big Beautiful Bill.” The clock’s ticking on end-of-year, and we’ve got boxes left to check. The moves you make in these final weeks could save you significantly when filing season arrives.

Internal Announcements

We have exciting news and important dates to help you plan ahead. Our busiest season is around the corner and already picking up the pace.

Welcome, Lydia! 

We’re thrilled to welcome Lydia Van Schepen, our new client service associate. She’ll be working closely with Chelsey on our administrative team to make sure your onboarding and filing processes run smoothly. Say hello the next time you call!

Tax Season Kickoff Schedule 

We’re starting early this year. Watch your inbox for these dates:

  • Jan. 5, 2026 (Monday): Organizers and document requests for personal returns
  • Jan. 12, 2026 (Monday): Wishlists for business returns

Engagement Letters (Last Call) 

If you haven’t signed your 2026 engagement letter yet, check your inbox. We’re nearing capacity and want to guarantee your spot is secure before we open the waitlist.

One more thing: We’re hiring for a senior tax manager. If you have a keen eye for numbers and value a tight-knit team, we’re your people.

H.R. 1: The “Big Beautiful” Breakdown

The OBBBA (H.R. 1) has certainly lived up to its name in terms of size. Here are the key provisions as we wind down 2025, covering everything from home improvements to business equipment.

The Headliners: New Deductions & Caps

Maximize your 2025 refund with these critical updates to the SALT cap, bonus depreciation and senior deductions. We’ve combed through the OBBBA for you.

The SALT Cap Jumps to $40,000 

This is the big one for many Seattle homeowners. The state and local tax (SALT) deduction limit for itemizers has increased from $10,000 to $40,000. Note this is subject to phaseouts for incomes over $500,000.

This creates massive new space to deduct property taxes, RTA taxes and sales tax. That runs the gamut from boats to new work trucks.

Bonus Depreciation Is Back (100%)

It’s a major win for local businesses. The OBBBA permanently restored 100% bonus depreciation for qualified property purchases made after Jan. 19, 2025.

If you’ve been debating a capital expense, the full write-off is back in play. Note the asset must be placed in service by December 31 to count for 2025.

Senior Deduction ($6,000+)

Taxpayers age 65 or older receive a new $6,000 deduction. Married couples may qualify for $12,000 if both are eligible.

This is subject to income phaseouts. It applies to both itemizers and standard deduction filers.

The Fine Print: Interest & Credits

These deductions for interest, tips and green energy come with strict eligibility rules. Let’s break out the magnifying glass.

Interest Is Back

Mortgage insurance premiums (PMI) are deductible again for itemizers. 

Car loan interest also may now be deductible for 2025, subject to income limits. This car loan deduction is available even if you claim the standard deduction.

Tips & Overtime

There are new deductions for tip income (up to $25,000) and overtime pay. The overtime cap is $12,500 for singles and $25,000 for joint filers.

If you’re an employer, please work with your payroll provider to ensure your payroll reporting is pristine on these items. That lets your team claim the deductions without a hitch.

Green Credits Sunsetting

The OBBBA terminated clean vehicle credits as of Sept. 30, 2025. However, energy-efficient home improvement credits are still available for 2025.

These credits vanish in 2026. If you need new eco-friendly windows or a heat pump, grab it now.

Notes on Giving & Gaming

New rules apply to your charitable gifts and gambling losses this year. Here’s the bottom line for itemizers.

Charitable Contributions

Non-itemizers can now deduct $1,000 (single) or $2,000 (married) in cash donations. If you itemize, be aware of a new “haircut” on contributions equal to 0.5% of your adjusted gross income.

Wagering Losses

Deductions for wagering losses are generally limited to 90% of total losses. But an exception exists.

Does that 90% figure exceed your winnings? If so, you can deduct losses up to the full amount of those winnings.

3, 2, 1 … Happy End-of-Year

Let’s finish strong. We’re honored to be your partners in avoiding potholes amid this often-bumpy financial landscape. If you have questions about year-end equipment purchases, the new SALT cap or anything else, please don’t guess.

Call us at 206-420-7329, or email us anytime. You can also follow us on LinkedIn for tips, updates and the occasional chuckle. 

From all of us at Seattle Accounting Professionals, we wish you a joyful holiday season and very merry New Year! We’ll be nestled by an open fire when we’re not eyeballs-deep in QuickBooks.