There is a lot to learn about a bill that is 870 pages long.  While not as big as some bills such as the 906 pages of the Patient Protection and Affordable Care Act, 870 pages of regulations is a lot to digest.

I don’t pretend to know everything about the One Big Beautiful Bill but here’s what Morgan Stanley Wealth Management says in its “Key Takeaway” bulletin, “The One Big Beautiful Bill Act delivers a lower corporate tax burden that could boost certain U.S. equity sectors, but it also raises concerns over rising U.S. deficits and higher rates.”

Access the Morgan Stanley article here

In their “Key Takeaway” article Morgan Stanley expounds on four facets of the bill and how you and your business might be affected.  Here are the facets they discuss:

1. Corporate and Individual Tax Cuts
2. Fiscal Challenges
3. Stock Opportunities and Risks
4. Bond Yield Pressures

When thinking of your Death Care businesses, here is one highlight about Business that may be to your liking.  Morgan Stanley states:

 

“The law’s biggest beneficiaries appear to be U.S. corporations. The legislation not only reinstates business-friendly TCJA provisions, such as 100% bonus depreciation and immediate deduction of domestic R&D expenses; it also introduces new measures like expanding the Advanced Manufacturing Investment tax credit and full expensing of factories. All told, these provisions could reduce the corporate tax rate from a statutory 21%, to as low as an effective 12%, the lowest rate in U.S. history.”

In any regard, this paper is a good short read that will give you things to visit with your tax accountant about how your business may be able to take advantage of certain items such as the depreciation provisions of the bill.

Tom Anderson
Funeral Director Daily

Funeral Director Daily take:  One of the items I found extremely interesting was the 100% expensing of factories.  I wondered, “Could I build a funeral home or crematory and expense the entire construction in one year?”

I’ve tried to find the answer and what I’ve found makes me believe that I would not be able to do so.  What I found is that a factory is defined in a new category defined as a “Qualified Production Property” (QPP).  My quick thought is I would not be able to do so under this definition of a QPP as provided:

• It is primarily used for manufacturing, production, or refining tangible personal property.

However, that is exactly why it is important to learn about what is in the bill and how certain new regulations might be able to enhance your financial position.  My guess is that there are those in our profession/industry who will try to make a case that a funeral home or crematory does fit under the QPP regulation.

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