2025 Drake Tax® Planner: One Big Beautiful Bill Act Updates Unpacked
As we gear up for the 2025 tax season, the Drake Tax Planner has been updated to reflect important provisions from the One Big Beautiful Bill Act, helping tax professionals quickly adapt and accurately model client scenarios.
Here’s a breakdown of what’s new:
1. 100% Bonus Depreciation
For assets placed in service after January 19, 2025, bonus depreciation now stands at a full 100%.
2. Section 179 Expense Limit Increase
The Section 179 deduction limit has risen to $2.5 million, with phase-outs beginning at $4 million— a substantial enhancement for high-cost asset purchases.
3. Updated Standard Deductions
- Married Filing Jointly (MFJ): $31,500
- Head of Household (HOH): $23,625
- Single / Married Filing Separately (MFS): $15,750
4. Child Tax Credit (CTC) Increase
The credit has been elevated to $2,200 per qualifying child.
5. SALT (State and Local Taxes) Limitation Raised
The SALT cap is now $40,000, subject to reduction by 30% of AGI exceeding $500,000.
6. Additional Deduction for Age 65+
Taxpayers aged 65 and older receive an extra $6,000 in deduction, helping to reduce their taxable income .
7. Clean Vehicle Credits Sunset
The Clean Vehicle Credit, Previously Owned Clean Vehicle Credit, and the Qualified Commercial Clean Vehicles Credit will expire for vehicles acquired after September 30, 2025.
8. New Tax Planner Enhancements & MISC Screen Fields
- A new checkbox — “For assets placed in service after January 19, 2025, apply the transition rules”— now appears on screen 10 in the Drake Tax Planner. It also appears outside Tax Planner in returns needing fiscal year adjustments.
- On the MISC screen, you’ll find new bottom‑screen fields to account for:
- No tax on tips
- No tax on overtime
- New car loan interest deduction
Why It Matters for Your Practice
These updates drastically influence scenario outcomes in the 2025 Tax Planner. Early adoption helps you:
- Run accurate forecasts — plan for asset purchases, expanded deductions, and tax credits.
- Fine-tune client strategy, especially for business owners and retirees.
- Avoid last-minute surprises — the clean vehicle credits expire soon, so plan accordingly.
- Improve tax savings, especially for high-earners contending with the revised SALT limitation.
Quick Tips
- Always toggle the transition‑rules checkbox for applicable assets to ensure full bonus depreciation or Section 179 benefits are captured.
- Use MISC screen options to reflect common deductions like car interest or tip/overtime adjustments—great for fine-tuning tax planning.
- Verify the clean vehicle credit eligibility date for any client purchasing vehicles in late 2025.
The Drake Tax Planner now aligns with the One Big Beautiful Bill Act to incorporate significant updates—100% bonus depreciation, higher Section 179 and standard deductions, an improved child tax credit, elevated SALT limits, and more. These changes, active as of July 17, 2025, are essential for accurate tax planning and should be leveraged now as you model client returns for 2025.
Please visit the Drake Tax Planner. Read our blog article about the One Big Beautiful Bill Act.
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