If you’re a laundromat owner looking to maximize profits, reduce taxes, and plan smart for the future, Episode 205 of the Laundromat Resource Podcast is a must-listen. Jordan Berry breaks down the biggest tax legislation update in years what he calls the “The Big Beautiful Bill” and what it means for your business. From permanent deductions and bonus depreciation to game-changing opportunities in real estate and labor incentives, this episode is packed with practical strategies that could save you thousands. Here’s a breakdown of the key lessons and how to turn them into real-world wins for your laundromat.

1. Understanding and Leveraging the “Big Beautiful Bill” (Tax Legislation Updates)

Lesson:
A major focus of this episode is the recently passed “big beautiful bill” – a sweeping tax legislation that extends and makes permanent several provisions from the 2017 Tax Cuts and Jobs Act (TCJA). As Jordan Berry emphasizes, these changes have tangible, bottom-line implications for business owners, especially laundromat operators.

Why It Matters for Laundry Pros:
Tax code changes can either eat into your profits or free up cash for reinvestment, expansion, or even personal take-home. Extensions of lower tax brackets, increased standard deductions, and permanent business incentives all impact your annual finances.

Action Steps:

• Consult a CPA Familiar with Small Business and Laundry Industry:
  Don’t try to DIY your tax strategy. Make an appointment with a trusted accountant and specifically discuss how the new provisions apply to your situation.

• Update Your Tax Planning:
  The permanent extension of the Qualified Business Income (QBI) deduction (Section 199A) means you may be eligible for up to a 20% deduction on your business income. Confirm your laundromat qualifies and ensure you’re documenting everything to claim this benefit.

• Monitor Your Income Brackets:
  With the continuation of the seven tax brackets (10% to 37%) and avoidance of a hike for high earners, anticipate and plan your annual draws, salaries, and reinvestment accordingly.

• Make Large Purchases Strategic:
  With bonus depreciation back to 100% for machines or property acquired after January 19, 2025, big purchases can massively reduce your tax bill in the year they’re made. Think ahead—schedule equipment upgrades or new builds to qualify for these incentives.

2. Bonus Depreciation is Back—Supercharge Expansion and Upgrades

Lesson:
One of the most immediately actionable takeaways is the restoration of 100% bonus depreciation (for property/assets acquired after Jan 19, 2025). This means laundromat owners can deduct the full cost of qualifying equipment or property—such as washers, dryers, or even a new facility—right away, instead of spreading that write-off over many years.

Why It Matters for Laundry Pros:
Laundry equipment is expensive, and retooling a store or opening a new location requires capital. With 100% bonus depreciation, that investment can essentially wipe out your taxable profit for the year you make the purchase. In other words: you keep more cash to deploy elsewhere.

Action Steps:

• Evaluate Your Equipment Needs:
  Inventory your machines and plan for upcoming replacements. If your machines are near end-of-life, aim to schedule large purchases after Jan 19, 2025 to take advantage.

• Consider Store Upgrades or Expansion:
  Now may be the time to expand, remodel, or acquire additional locations, knowing the up-front depreciation savings can significantly lessen your tax burden.

• Coordinate with Your Vendors Early:
  Supply chains remain volatile. Discuss your planned purchases with suppliers in advance to ensure you’re ready to execute and meet the correct timelines for bonus depreciation.

• Budget for Growth:
  If you’ve been postponing a major investment, recalibrate your business plan to utilize this window of opportunity, maximizing the after-tax return.

3. Opportunity Zones – Real Estate and Tax Goldmine

Lesson:
The bill makes Qualified Opportunity Zones (QOZs) permanent and establishes a system of periodic redesignation every 10 years. If you’re considering buying property for a laundromat in qualifying zones, the tax advantages can be game-changing: deferred gains, step-ups in basis, and potential elimination of taxes on long-term capital appreciation.

Why It Matters for Laundry Pros:
Laundromats are real-estate-heavy businesses. If your next (or first) store can be sited within an Opportunity Zone, investment gains can be partially or entirely shielded from federal taxes if you meet holding requirements.

Action Steps:

• Check Opportunity Zone Maps:
  Use federal or state economic development tools to identify QOZs in your target markets.

• Work with Real Estate Agents Familiar with QOZs:
  Not all brokers understand these zones. Affiliate with advisors who specialize in these transactions.

• Assess Long-Term Viability:
  Since the biggest tax breaks come after 10 years, ensure any Opportunity Zone investment will be profitable and stable for the long haul.

• Explore Improvement Requirements:
  Typically, to qualify, you must not only purchase but also improve the property. Budget significant capital expenditure and plan your project scope accordingly.

4. Labor and Employee Incentives: No Tax on Tips and Overtime Deductions

Lesson:
Temporary provisions in the bill (2025-2028) include significant benefits for employees: no taxes on tips (up to $25,000) and deductions for overtime pay. For laundromat owners with attendants, processors, or delivery drivers, these incentives can help with recruitment, retention, and morale.

Why It Matters for Laundry Pros:
Attracting and keeping reliable staff is a perennial challenge. Making your positions more attractive—by highlighting these new tax benefits—could give you a hiring edge.

Action Steps:

• Update Job Postings and Hiring Materials:
  Promote the new tip and overtime tax breaks in your recruiting to potential employees.

• Evaluate Your Tipping and Overtime Policies:
  If you don’t currently allow tipping or overtime, reassess. These incentives could make those options cost-effective for both you and your staff.

• Communicate Benefits Clearly:
  Make sure current employees (and potential hires) are aware of these changes and how to maximize them—demonstrating that you care about their take-home pay.

• Consult Your Payroll Provider:
  Ensure your payroll systems are set up to track and report these earnings in compliance with the new guidelines.

5. Proactive Tax Planning – Don’t Leave Money on the Table

Lesson:
A recurring theme from Jordan is the importance of being proactive—not reactive—about tax planning. Many laundromat owners only look at taxes at the end of the year, missing out on easy wins that good planning can yield.

Why It Matters for Laundry Pros:
The government offers powerful incentives for small business owners, but they require forethought and some recordkeeping. Every dollar saved on taxes is a dollar you can reinvest in your business, staff, or your own financial freedom.

Action Steps:

• Schedule Quarterly Check-Ins with Your Accountant:
  Review profit/loss, potential purchases, and upcoming milestones.

• Keep Good Records:
  Document all purchases, improvements, and eligible expenses (including R&D if applicable)!

• Stay Informed:
  Listen to episodes like this one, watch for legislative changes, and be ready to adapt quickly.

Conclusion

Episode 205 is a must-listen for anyone serious about the laundromat industry. These legislative changes are more than headlines—the right moves can mean tens of thousands of dollars in savings and new growth opportunities. By consulting experts, planning ahead, and using government incentives as they’re designed, you’ll be well-positioned to succeed in any economic climate.