OBBA and Other Business & Investment Changes: What to Know

The One Big Beautiful Act (OBBA) is packed with tax updates, and while some changes grab the headlines—like bonus depreciation and SALT cap relief—there are also a handful of “other business and investment” provisions that matter for many companies and investors.

Key Updates

• Expanded QSBS Exclusions: Qualified Small Business Stock (QSBS) rules are broadened, making it easier for investors in startups to exclude more of their gains from taxes when they sell.

• Adjusted Interest Deduction Rules: Businesses face new limits and formulas on how much interest expense they can deduct, which could affect highly leveraged companies.

• New Reporting Thresholds for 1099s: The rules around issuing and receiving 1099 forms are changing, which means more transactions may need to be reported.

• Other Technical Tweaks: Several small but important adjustments aim to simplify compliance and close loopholes.

Why It Matters

For entrepreneurs and investors, these “behind the scenes” provisions can be just as important as the headline items:

• Startups and early investors stand to benefit from more generous QSBS rules.

• Businesses that rely on debt may need to revisit their financing strategies.

• Small businesses and freelancers should be prepared for increased 1099 reporting, which means staying more organized with income records.

Bottom Line

While the OBBA is full of eye-catching tax changes, the “other business & investment” provisions shouldn’t be overlooked. They touch everything from how startups are funded to how everyday businesses manage their paperwork.

If you run a business or invest in one, now is the time to talk with your advisor about how these quieter but powerful shifts could affect your bottom line.

Graph with stock market flactuation