Jordan Berry [00:00:00]:
Welcome to the Laundromat Resource Podcast. I’m your host, Jordan Berry. This is show two. Wait, oh, no, what show is it? 205. Are you for real right now? Show 205 coming at you right now. And listen, I’m just going to be straight up front with you. This may not be the most exciting episode of the podcast ever, but there’s real time dollars to be made here if you pay attention and apply some of these things. Today we’re going to talk about that one big, beautiful bill that came out recently and a couple of caveats before we dive into it.

Jordan Berry [00:00:37]:
My goal here for this episode is just to present you with some things that happen with this and how it might impact you personally and. Or impact you as a business owner in this business. I am not advocating or not not advocating this bill or any parties or anything like that. I’m just trying to present to you, like, hey, here’s some things that have happened. Here’s some to think about in terms of how the current reality can benefit you as a. As a person, but also as a business owner. Okay? So, you know, political beliefs aside, this is strictly. We’re sticking to the facts on this one.

Jordan Berry [00:01:18]:
And with that in mind, I feel like this doesn’t need to be said, but I’m going to say it anyways. Listen, I’m not a tax professional. I’m not a lawyer. I’m not a cpa. This is not advice for that. This is informational purposes only to help you get some direction on how you can benefit or how you can sort of leverage this big, beautiful bill for your big, beautiful life that you’ve got going on right there. Okay? So that caveat out of the way, and I’ll, you know, I’ll just be upfront with you. Listen, I’m not necessarily the smartest guy when it comes to all this stuff.

Jordan Berry [00:01:49]:
However. However, I’ve got some really smart friends who have helped me put this together and helped me, you know, where, where appropriate, contextualize this for us laundromat owners. Okay? So let’s talk about the big, beautiful bill. Let’s get into it again. This is, this is the real stuff, man. This is the stuff that is going to directly feed your bottom line. And I do highly recommend that you take some of these things that you’re hearing here. Talk to tax professional, talk to your CPA about it.

Jordan Berry [00:02:19]:
Figure out how you can leverage the implications of this bill for yourself to save yourself from taxes. Okay. All right, let’s jump into it. What is the Big beautiful bill. Listen, big picture. It’s this sweeping piece of tax legislation that extends many provisions from the 2017 Tax Cuts and Jobs Act. Okay, or TCJ, a tax cuts and Jobs Act. I may refer to the, refer to it as a TCJA, but that’s what I’m talking about, the 2 17, 2017 tax cuts and Jobs Act.

Jordan Berry [00:02:55]:
Okay? So President Trump signed the bill into law, the big beautiful bill into law, on July 4th. And let’s talk about what you need to know here. We’ll talk about, you know, just generally what this bill has done and also ways that it may or may not impact you on a personal level and business level. Okay, so let’s talk first about some of the key provisions that have been made permanent or have been extended by this bill. Okay, so number one, we got to talk income. Talk income tax brackets. All right, so the seven tax brackets that the Tax Cuts and Jobs act originally outlined from ranging from 10% to 37%. Those are going to remain in place.

Jordan Berry [00:03:41]:
They were, I believe, I believe they’re originally set to expire at the end of the year this year, and they’ve been extended out. And they had been talking about raising the top end up to 39.6% for higher earners, but that did remain at 37% there. Okay, so seven income tax brackets have remained the same and will continue to remain the same. All right, let’s talk mortgage interest deduction for you homeowners. Interest deductibility remains tied to its current limit of $750,000 mortgage debt for joint filers or 375,000 for senior single filers. Okay. So that’s going to stay the same. And the standard deduction is made permanent in accordance with the higher deductions that the Tax Cuts and Jobs act originally established.

Jordan Berry [00:04:36]:
So it’s increasing, though, for 2025-15, 750 for individuals from up from $15,000 and $31,500 for joint filers, up from $30,000 previously. After 2025, it’s going to be indexed for inflation. So that’ll continue, most likely, and we’ll talk about why. But most likely inflation is going to continue, at least on some level. So that will those limits will continue to go up each year as inflation rises. Okay, so now for all you ballers out there, the lifetime gift tax and estate tax exclusions were permanently increased to $15 million per person beginning in 2026. And beyond 2026, again, it will be indexed for inflation. So that’ll continue to go up as long as inflation continues to rise, which there’s to my knowledge, zero reason to think that it wouldn’t.

Jordan Berry [00:05:41]:
Okay, so let’s talk about the qualified business income deduction that was made permanent, also set to expire at the end of this year, I believe. But it was made permanent by the big beautiful bill for the QBI or qualified business income deduct. And that’s also known as section 199A deduction. And again, talk to your CPA about that. But that can be a 20 deduction for you based on qualified business income, which I believe, again, not a cpa, but I believe laundromats qualify for because we’re serving domestic clientele. Right. So again, look into that. I’m not, I’m not a tax specialist.

Jordan Berry [00:06:27]:
I’m not a cpa, I guess. Okay, another huge opportunity here. And in fact, I’ve got some clients trying to take advantage of this right now. Clients who are looking to build and, or buy locations to, to run laundromats, the qualified opportunity zones. Opportunity zones can be a huge tax benefit if you buy a property in, in that opportunity zone, you know, improve it, improve that situation. So the big beautiful bill made the qualified opportunity zones permanent. And beginning in 2026, those zones will be redesignated every 10 years. So those zones might shift.

Jordan Berry [00:07:15]:
You know, assuming this opportunity zone, the, the spirit behind the opportunity zones is to help improve areas that need some improvement. Right? So assuming it works within a decade, those zones may move around or if it’s not quite there yet, they may be re designated as an opportunity zone every 10 years. Okay. So deferred gains for qualified opportunity zone Investments made after January 1, 2027 will be recognized on the earlier of five years or investment disposition. A 10% setup basis will occur if the investment is maintained for at least five years. No tax on the gain of the qual business opportunities or an investment, the investment is held at least 10 years. So basically what that’s saying is if you invest in an opportunity zone and you hold it for at least 10 years, you are, you’re, you’re hitting the, the tax jackpot there. So it’s worth looking, if you’re looking to expand your portfolio, you’re looking to get into this business, you’re in a place where you can actually purchase the real estate along with it, looking in those opportunity zones.

Jordan Berry [00:08:22]:
Now listen, everything still has to make sense, right? The number still have to make sense, still has to be a good opportunity. The business still has to be able to stay afloat so that you keep that, that property for 10 years. But if you’re able to do that, listen, it’s a huge tax win for you there. So on the capital gains tax side, okay, so again, feel free to do some more research both on the qualified business income and the qualified opportunity zones. Make sure you’re taking advantage of those if you’re in a position to do so. Listen, we’ve got some other incentives for business owners that might make you salivate a little, including deductions for research and development expenses. Not totally relevant to Laundromats. Although, who knows, man, if you’re researching and developing some cool stuff for this industry, number one, we want to hear about it.

Jordan Berry [00:09:14]:
We want to support you. Number two, could be, could be a deduction. Talk to your CPA. But more immediately applicable to us is 100 bonus depreciation for property assets such as our machines is back as long as you acquired those after January 19, 2025. And an allowance to apply depreciation and amortization costs to the basis of interest expenses. Okay, so what that means is we’ve been losing bonus depreciation by 20% a year for a little while now, and it’s back all the way back up to 100% for any bought after January 19th of this year, 2025. Right. So that’s a huge win for us, a huge tax advantage for us.

Jordan Berry [00:10:02]:
It’s another incentive to retool. If you’re looking to retool and you got to buy new equipment, massive incentive to do that. In fact, I’ve shared this before. I try to make a big purchase every year because it has the ability really to just wipe out your taxes if you make a large enough purchase. Now, you don’t want to just purchase stuff, just purchase it. But if it’s going to help you grow your buying a new location, retooling a store, buying real estate, things like that are huge tax tax benefits. With that 100% bonus depreciation back. So we’re back, baby.

Jordan Berry [00:10:39]:
Okay, on the downside, well, I guess depending on how you look at it, but personal exemptions have been permanently eliminated and the miscellaneous 2% itemized deductions, both permanently eliminated by the big beautiful act. Okay, so let’s talk about some temporary prov that came about due to this big beautiful bill. Number one, let’s get a little salty. We got to talk salt, which is a state and local tax deduction that has increased to $40,000 for 2025 and it will go up 1% for tax years 2026 through 2029. So the higher SALT deduction begins to phase out for taxpayers with income above $500,000, although no lower than a 10,000 DOL for high earners. And deduction deduction will reset to $10,000 in 2030. So make sure you’re taking advantage of that SALT deduction there. And for you old timers out there, listen, sometimes it feels like there’s not a lot of perks of getting older, but here’s one of them for you.

Jordan Berry [00:11:48]:
Got a senior deduction, a $6,000 deduction for taxpayers over the age of 65. This deduction is subject to an income phase out, which means the more money you make, the less of that deduction. You get. $75,000 for individuals, $150,000 filing joint. And the senior deduction is limited to the tax years of 2025 to 2028 as of right now at least. So take advantage of that if you are 65 or older and hit those kind of income phase out marks there. Big one that we’re hearing about all over the place is that there’s no tax on tips. Now, this might be a huge perk for attendance or if you have laundry, processors or drivers.

Jordan Berry [00:12:38]:
If you’ve got any employees working on tips or not working on tips, but able to receive tips, they get a deduction of up to $25,000 for cash tips received by an individual who works in an industry customarily receives tips. And the deduction phases out with the modified adjusted gross income of $150,000 for single filers and $300,000 for joint filers. And then as of right now, that deduction is limited to 2025 to 2028. Okay, so big benefit for your workers. And maybe if you’re not currently allowing your employees to get tips, I mean, it might just be worth thinking about it. Obviously, run your business the way you want to run it and, you know, feel how you want to feel about tips. I know there’s some controversy around tipping culture right now, but it’s in the big beautiful bill. So if it can help you get better employees in there or help motivate them in some way, listen, take advantage of it for your business, okay? Another benefit to employees that may also benefit you is no tax on overtime.

Jordan Berry [00:13:46]:
There’s a deduction for qualified overtime compensation up to $12,500 for single filers and 25k for joint filers. And this deduction phases out with a modified adjusted gross income of $150,000 for single filers and 300 for joint. And again, it’s limited from 2025 to 2028. Listen, this is a good one too. A deductible car loan interest, right? So if you own your car and you’ve got, you pay, you know, you took out a loan on it, you pay some interest, you can deduct up to $10,000 of loan interest for purchase vehicles whose finally final assembly occ us. Okay. This is part of that initiative to bring manufacturing back here. Now, I mean, it’s a little bit of a leap, you know, but it’s a step final assembly occurring here in the US you can deduct up to $10,000 of that interest, that loan interest on your vehicle.

Jordan Berry [00:14:42]:
And it’s subject to income limitation limitations. Again, again, modified adjusted gross income, $100,000 or less for single or $200,000 or less for joint filers. And again limited to 2025 to 2028. Okay, so these are available as of now, this year. And one thing I, one reason I wanted to kind of go through this, obviously, like we want to take advantage of these things that can help us run better businesses and you know, make more money and serve our customers better, all that, all that stuff too. But we want to be proactive. I think we’re not proactive enough about our taxes, many of us, and about how we are setting ourselves up to benef the, the incentives that we’re offered a lot of times to, you know, to own businesses, run business. The government wants us to run businesses, wants us to be profitable, wants us to make money.

Jordan Berry [00:15:40]:
So let’s take advantage of these. Okay, Those of you guys out there who are, listen, you’re looking to have a baby anytime now in the next couple years, three years. There’s a new pilot program for newborns. And this bill authorizes the government, the Federal Government to $1,000 contribution to the new Trump accounts for children born between January 1, 2025 and December 31, 2028. And listen, if you had a baby this year or you’re planning on having one in the next couple of years, definitely take advantage of that. That whole compounding interesting. Gets real interesting with, with relatively small amounts of money when you start that early, that can compound really, really well there. And again, you know, you may want to contribute to that in some way or contribute to, you know, those early on investments to set your kids up for success long term.

Jordan Berry [00:16:38]:
But that’s one way that you can do it. Let’s talk about Trump accounts as well. I think this is, yeah, Trump accounts. This bill establishes big Beautiful Bill again establishes a new savings account for minor children who are U.S. citizens, parents or guardians can contribute up to $5,000 per year, adjusted for inflation until the child reaches 18. Withdrawals are restricted until age 18. And taxation of the accounts mirrors that for traditional IRAs. The account grows tax deferred with withdrawals taxes, ordinary income.

Jordan Berry [00:17:16]:
Okay, so basically operates as an IRA and a retirement account where it’s growing tax deferred. And I believe, I believe. Okay, I’m not positive of this, so I don’t have this down, but I thought I saw something about. It’s the $5,000 per year. I believe it said. Okay, well don’t quote me on this because I was trying to remember what I heard, but I thought that could be a write off for you contributing it. And then similar to an ira. And then it will grow tax deferred for the child and then when withdrawals are made, there’ll be taxes.

Jordan Berry [00:18:00]:
Ordinary income, I believe, but don’t quote me on that. I don’t have that in my notes, but I thought I saw that. So look that up in those Trump accounts. $5,000 per year until the child reaches 18. I guarantee if you do that and they don’t touch that money until they’re 65 or whatever, 70 years old, they’re going to be, they’re gonna be rolling in the dough maybe, I don’t know, depending on if we have dollars then or not. Okay, there’s another thing that I have my notes here about college and university endowment taxes. You can look that up. That’s not really that applicable to us personally or to our businesses.

Jordan Berry [00:18:33]:
But another kind of notable removal actually phase out, if you will, that you’ve probably heard of because it’s created some drama, especially with Elon Musk. There’s some clean energy tax credits that were largely out unwinding some of these tax credits previously created by the Inflation reduction act of 2022. The clean vehicle tax credit ends September 30, 2025. So if you’re thinking about buying a clean vehicle and taking advantage of the tax credits, maybe you want to do that between before September 30 and the tax credits for energy efficient home improvements is going to end December 31, 2025. Okay, so listen, here’s kind of what this, here’s a, here’s a summary of. I think what this is going to mean for us. Just big picture here. It looks like the one big beautiful bill here is expected to deliver some fiscal stimulus supporting near term equity sentiment, meaning people are excited and have positive feelings about our economy while enforcing pro go.

Jordan Berry [00:19:45]:
I can’t speak anymore. Enforcing pro growth business conditions meaning hopefully in the short term our economy is going to grow. However, the bill does worsen our already elevated deficits with spending levels which typically only see during recession. So according to the Congressional Budget Office, the bill will add more than $3 trillion to deficits over the next decade. Bond markets already starting to respond to that with the tensions of long term rates showing, you know, renewed volatility there. But listen, things are changing all the time. I just wanted to, you know, make sure somebody is addressing this. I haven’t seen anybody address a big beautiful bill when it comes to laundromats and laundromat owners.

Jordan Berry [00:20:29]:
I want to throw some of that out. I know we went over a lot of stuff there very quickly. So check out laundromatresource.com show205 on my resource.com show205 and you can see sort of a breakdown of all of this. And, and you know, you can, you know, take a little more time with it if you need it to see, you know, maybe highlight what is going to apply to you and what doesn’t apply to you and what you want to try to take advantage of, what you want to talk to your CPA about. Lot of stuff going on right now trying to keep up on this stuff for you guys and with you guys, if you’ve got other insights into any of this stuff or really into anything kind of going on, you know, macroeconomically, you know, with, with laws or bills that are being passed, anything industry related or tangentially industry related that might have an impact on our industry. I love to hear about it. You can always shoot me an email@news laundresource.com to get that on our news episode, which goes out on Fridays. Or if you just want to have a conversation about it, you know, via email or over like a zoom or something, hit me up at Jordan J O R d a n resource.com I love to hear what you got to say about where our industry is going, about things that are impacting our industry that people aren’t really talking about.

Jordan Berry [00:21:52]:
I love, love, love to hear about that stuff. Because listen, knowing this kind of stuff is going to help us build better businesses. All right? That’s what we’re all about here. All right. All right. Big beautiful bill. Love it, hate it, irrelevant. It’s here and it’s going to affect us one way or another.

Jordan Berry [00:22:09]:
So we might as well take advantage of it and utilize it to serve our communities better. How about that? That? Okay. All right. Appreciate it. Again, super pumped to be at episode 205 with you guys. Thank you for hanging in there. If you’re still listening to this, talking about this big, beautiful bill and how it’s going to affect us in our businesses, we’ll see you in the next episode. Peace.