The One Big Beautiful Bill Act (OBBBA) permanently extended a harsh TCJA rule: no deduction for “miscellaneous itemized deductions,” including hobby expenses. That’s brutal for dog breeders, because the IRS often labels breeding as a hobby.Translation: income gets taxed, expenses don’t. Hobby income is reported separately on Schedule 1, but most related costs are simply nondeductible.There is a narrow carve-out: if you sell inventory (puppies), you can reduce taxable hobby income by direct costs tied to those sales. Beyond that, hobby treatment is a tax dead end.Good news: you don’t have to accept hobby status. If you structure and run breeding as a business, you unlock deductions and escape the OBBBA/TCJA penalty box.

OBBBA adds a temporary, targeted deduction for tips. It’s not a universal “no tax on tips.” Many tipped amounts are still taxable, and payroll taxes still apply. Here’s the clean, CFO-level breakdown you can put in front of clients.

We’ve heard the same questions you have: "Is Social Security closing?" "Are my benefits going away?" The short answer: no. What’s Actually Happening, no benefit cuts have been announced. Retirees and beneficiaries will continue to receive their monthly checks. Administrative reshuffling is underway. Some Social Security offices are being consolidated or reorganized, but this does not affect the benefit amounts people receive. The Trust Fund challenge remains. Projections suggest that around 2033–2034, the trust fund could be depleted if Congress takes no action. If that happened, incoming payroll taxes would still cover about 75–80% of benefits. But historically, Congress has stepped in before any reductions took effect.