Tax Planning
Strategic Tax Planning Under the ‘One, Big, Beautiful Bill’: Depreciation & Remittance Rules
Big law, big impact: If you acquired business property or send remittances overseas, recent OBBB clarifications on **100% first‐year depreciation** and the **remittance transfer tax** demand action now.
By NomadicTax Research Team • 5-8 min read • July 5, 2026
## What Changed & Why It Matters
The One, Big, Beautiful Bill (OBBB), passed in July 2025, has introduced sweeping changes affecting deductions for business property and remittance transfers. Two major policy updates are:
- **Permanent 100% additional first‐year depreciation deduction** for eligible property acquired after January 19, 2025. Previously, there was a phasedown trigger. ([irs.gov](https://www.irs.gov/newsroom/treasury-irs-issue-guidance-on-the-additional-first-year-depreciation-deduction-amended-as-part-of-the-one-big-beautiful-bill?utm_source=openai))
- A **1% excise tax on certain remittance transfers** starting January 1, 2026. It applies when the sender uses physical instruments like cash, money orders, cashier’s checks, or similar items. Providers must collect the tax, deposit semimonthly, and file quarterly returns using Form 720. ([irs.gov](https://www.irs.gov/newsroom/treasury-irs-issue-proposed-regulations-on-the-new-remittance-transfer-tax-established-under-the-one-big-beautiful-bill?utm_source=openai))
## Tax Planning Opportunities
### 1. Buying and Placing Business Property in Service
- If you’ve got eligible property (equipment, specified plants, machinery) acquired **after Jan. 19, 2025**, you can deduct the **full cost immediately**, thanks to the 100% first‐year depreciation. No need to depreciate over several years. ([irs.gov](https://www.irs.gov/newsroom/treasury-irs-issue-guidance-on-the-additional-first-year-depreciation-deduction-amended-as-part-of-the-one-big-beautiful-bill?utm_source=openai))
- Examples: Industrial machinery bought in mid-2025, agricultural equipment placed in service just after the cutoff—each qualifies.
- Consider timing: if acquisition is delayed past Jan. 1, 2027 (for certain aircraft or long-production‐period property), the rules may change, so act now. ([irs.gov](https://www.irs.gov/pub/irs-irbs/irb26-06.pdf?utm_source=openai))
### 2. Handling Remittances to Foreign Recipients
- Understand what triggers the remittance transfer tax: **physical instruments** paid by the sender (cash, money order, etc.). Other fund sources like debit or credit cards or bank account withdrawals are generally excluded. ([irs.gov](https://www.irs.gov/newsroom/treasury-irs-issue-proposed-regulations-on-the-new-remittance-transfer-tax-established-under-the-one-big-beautiful-bill?utm_source=openai))
- If you're a remittance provider, make sure systems capture when the sender uses physical instruments and adjust processes for semimonthly deposits and quarterly returns.
- If you regularly send money overseas, avoid using trigger instruments where possible—or know that using them may incur an extra 1% cost. Use bank transfers or cards when feasible.
## Compliance & Action Items
| Stakeholder | Action Item | Deadline / Note |
|---|---|---|
| Business acquiring property | Confirm acquisition date > Jan. 19, 2025; verify it's eligible under § 168(k); plan purchases accordingly | ASAP—buy & place in service while conditions favorable |
| Remittance transfer providers | Update collection, reporting, deposit processes; rely on proposed rules & comment where ambiguous | Regulations comments due June 12, 2026; start compliance now for transactions after 1/1/2026 ([irs.gov](https://www.irs.gov/newsroom/treasury-irs-issue-proposed-regulations-on-the-new-remittance-transfer-tax-established-under-the-one-big-beautiful-bill?utm_source=openai)) |
| Individuals sending remittances | Choose non-trigger instruments when possible; otherwise, budget the extra cost | Immediate |
## Example Scenarios
- **Scenario A**: A small manufacturing company purchases machinery in February 2026. Acquired after Jan. 19, 2025—eligible. It can take 100% deduction in first year rather than spread over multiple years.
- **Scenario B**: A worker abroad sends $10,000 cash remittance via a provider that requires the sender to bring physical cash. That sender triggers the 1% tax, so owes $100 extra; provider must handle collection/reporting. If instead they use bank transfer or debit card, tax may not apply.
## Risks & Watchouts
- Proposed remittance regulations are still being finalized—definitions around “physical instrument” and “promotional bonuses” may shift. Rely all decisions on published rules & comment where uncertain. ([irs.gov](https://www.irs.gov/newsroom/treasury-irs-issue-proposed-regulations-on-the-new-remittance-transfer-tax-established-under-the-one-big-beautiful-bill?utm_source=openai))
- Misclassification of property types (aircraft, long-production-period items) may result in partial or no eligibility.
- Remittance providers must avoid inadvertent non-collection which triggers liability for the tax.
## Final Word
These OBBB provisions offer powerful tools for reducing taxable income—through full depreciation now—and require vigilance where remittances are involved. By aligning acquisition timelines and using non-triggering payment instruments, taxpayers and providers can optimize outcomes and stay in compliance.