Welcome back to Belk on Business! I’m Josh Belk, and in today’s episode, I’m diving into a new set of provisions from the recently passed “Big Beautiful Bill.” We’re shifting gears from the last few episodes and breaking down five key areas: tax relief on overtime pay, updated estate and gift tax exemptions, gambling deduction limits, changes to qualified small business stock, and updates to FMLA and meal deductions.
Whether you’re an employer managing payroll, a high-net-worth individual planning your estate, or a business owner looking at stock-based growth, there’s something in here that can affect your planning and your bottom line. Let’s get into the details.
3 Key Takeaways
No Tax on Overtime (2025–2028): Employees in tip-eligible industries can deduct the overtime portion of their pay (above their normal rate) up to $12.5K (single) or $25K (joint), regardless of itemizing.
Estate Tax Exemption Raised: The federal estate and gift tax exclusion jumps to $15M (plus inflation), giving families and high-net-worth individuals more room to plan.
QSBS Gains Can Be Excluded: Qualified Small Business Stock purchased after July 1, 2025, may offer up to 100% capital gains exclusion if held for five years, or rollover options similar to a 1031 exchange.
Episode Timeline & Highlights
[0:00] - Recap of previous episodes and what’s new in this one
[1:15] - No tax on overtime explained: who qualifies and what’s deductible
[3:25] - Example breakdown of how overtime deduction works
[6:32] - Employer payroll implications and what reporting might look like
[6:57] - Estate and gift tax exemption increased to $15M
[8:54] - Gambling losses now limited to 90% of winnings
[10:04] - What is Qualified Small Business Stock (QSBS) and how gain exclusions apply
[11:42] - Eligibility rules for QSBS, asset limits, and holding period
[14:00] - Family Medical Leave Act credits made permanent
[14:54] - Meal deduction changes—who still qualifies for 100%
Links & Resources
IRS Guidance on Overtime Tax Treatment (coming soon)
Estate & Gift Tax Overview: https://www.irs.gov/businesses/small-businesses-self-employed/estate-and-gift-taxes
Qualified Small Business Stock (QSBS) Rules: https://www.irs.gov/pub/irs-drop/n-18-48.pdf
Family and Medical Leave Credit Info: https://www.irs.gov/newsroom/employer-credit-for-paid-family-and-medical-leave
If this episode gave you a clearer understanding of the new tax provisions, don’t forget to rate, follow, and review Belk on Business. And share it with a colleague or business owner who should be planning ahead. Until next time—stay smart and strategic.
