Date: November 14th , 2025

Time: 1pmET | 12pm CT | 11am MT | 10am PT

Duration: 120 Minutes

Description:

The One Big Beautiful Bill Act (OBBB), signed into law on July 4, 2025, brings sweeping updates for S corporations by extending and expanding key provisions of the 2017 Tax Cuts and Jobs Act (TCJA).

Under OBBB, lower individual tax rates are made permanent, tax brackets are widened, and the Qualified Business Income (QBI) deduction under Section 199A is extended beyond 2025. This lets S corporation shareholders continue excluding up to 20 percent of qualified business income—reducing overall tax liability by up to 20 percent or more. Beginning in 2026, expanded phase-out thresholds will allow more taxpayers to take full advantage of this benefit.

The session will also explore how OBBB reshapes entity selection decisions, from maintaining S corporation status to electing C corporation treatment and qualifying for enhanced Qualified Small Business Stock (QSBS) opportunities. In addition, we’ll review the temporary increase in the SALT deduction cap to 40,000 dollars (2025–2029), its phase-out rules for higher-income taxpayers, and how it interacts with state-level pass-through entity tax (PTET) regimes.

Topics Covered

• Major updates for S corporations under the One Big Beautiful Bill Act (OBBB)
• Permanent extension of lower individual tax rates and widened tax brackets
• Expanded and extended Qualified Business Income (QBI) deduction under Section 199A
• Maximizing the 20% QBI deduction and understanding new phase-out thresholds beginning in 2026
• Impact of OBBB on entity choice decisions—S corporation versus C corporation status
• Opportunities for enhanced Qualified Small Business Stock (QSBS) treatment
• Temporary increase in the SALT deduction cap to $40,000 (2025–2029) and its phase-out for high earners
• Comparison of federal SALT changes with state-level pass-through entity tax (PTET) regimes
• Strategic tax planning for S corporations in light of long-term OBBB reforms

Learning Objectives

• Explain the key S corporation provisions under the One Big Beautiful Bill Act.
• Identify how the extended QBI deduction and new thresholds affect shareholder tax planning.
• Evaluate whether retaining S corporation status or converting to C corporation status is more beneficial post-OBBB.
• Apply the new SALT deduction and PTET comparisons to optimize state and federal tax positions.
• Develop forward-looking strategies to align S corporation planning with OBBB’s long-term reforms.

Credits and Other information:

• Recommended CPE credit – 2.0
• Recommended field of study – Taxes
• Session Prerequisites and preparation: None
• Session learning level: Basic
• Location: Virtual/Online
• Delivery method: Group Internet Based
• Attendance Requirement:  Yes
• Session Duration: 120 minutes

Who Will Benefit:

• CPA
• Enrolled Agents (EAs)
• Tax Professionals
• Attorneys
• Other Tax Preparers
• Finance professionals
• Financial planners

About Our Speaker

Joseph (Jay) B. Darby III

Joseph (“Jay”) B. Darby III has more than thirty years of experience representing clients in a wide range of tax, estate planning, and related business matters. His goal is to help clients enjoy their lives by reducing taxes, avoiding (or resolving) problems with taxing authorities, and passing personal wealth to the appropriate next destination.

Jay’s clients range from individuals to large public and private business entities, and while he has structured some of the most sophisticated transactions in the business arena, he is mindful of the fact that people rather than businesses ultimately pay taxes. Therefore, he always structures transactions with the goal of minimizing the tax costs and maximizing the after-tax return for the people he represents. An early proponent of Opportunity Zones (an investment incentive created under the 2017 Tax Act), Jay has become one of the country’s go-to experts in the area, helping clients bring business investment and ultimately prosperity to some of the most challenged areas of the country.