OBBBA Overview

Obtain the One Big Beautiful Bill Act (OBBBA) summary. Review new tax legislation effective January 2026. Apply updated codes to current fiscal planning. Ensure compliance with federal mandates. Identify specific industry impacts. Analyze revenue thresholds. Assess legislative intent for small firms.

Asset Depreciation

Apply 100% bonus depreciation. Deduct full purchase costs. Include machinery. Include computers. Include qualifying equipment. Use for new assets. Use for used assets. Maximize first-year write-offs. Verify service dates. Document all receipts. Store proof of purchase. Track asset lifespan. Monitor disposal dates. Calculate salvage value. Maintain fixed asset ledgers. Review tax preparation services.

Expensing Rules

Utilize §179 expensing. Observe $2.56 million limit. Note $3.63 million phase-out. Prioritize domestic R&D. Expense research costs immediately. Eliminate five-year amortization. Improve business cash flow. Fund innovation cycles. Categorize software development. Track lab equipment. Audit engineering labor. Consult business formation guides.

Pass-Through Rules

Claim 20% QBI deduction. Maintain permanent status. Verify LLC eligibility. Check S corporation status. Confirm partnership standing. Review sole proprietorship income. Track W-2 wages. Monitor unadjusted basis of property (UBIA). Compare 50% wage limit. Compare 25% wage plus 2.5% property limit. Limit deduction to 20% of taxable income.

Threshold Limits

Monitor 2026 income caps. Note $203,000 for single filers. Note $406,000 for joint filers. Identify Specified Service Trades (SSTB). Track legal income. Track accounting revenue. Track consulting fees. Track medical earnings. Apply phase-out calculations. Adjust retirement contributions to lower MAGI. Utilize tax planning.

Entity Compliance

Maintain active LLC status. File annual reports. Update registered agent details. Verify Corporate Transparency Act filings. Update beneficial ownership info. Keep personal and business funds separate. Use business accounts only. Sign documents as entity member. Update operating agreements. Reflect 2026 ownership changes. Archive meeting minutes. Store digital records.

Payroll Updates

Calculate 72.5 cent mileage rate. Reimburse business travel. Document trip purposes. Note odometer readings. Configure payroll software. Update tip reporting. Apply overtime tax reductions. Verify qualifying worker status. Issue 1099-NEC forms. Use payroll services. E-file by January 31. Reconcile quarterly 941 forms. Audit employee classifications.

Interest Deductions

Apply 30% ATI cap. Calculate ATI before depreciation. Use EBITDA-based formulas. Optimize leverage strategies. Review loan agreements. Document business interest. Track investment interest. Separate personal debt. Monitor interest rate shifts. Adjust borrowing cycles. Review consulting for debt structure.

Retirement Credits

Claim SECURE 2.0 credits. Offset plan startup costs. Utilize $500 matching credits. Set up 401(k) plans. Establish SIMPLE IRAs. Increase contribution limits. Contribute $24,500 deferrals. Add $8,000 catch-up for age 50+. Add $11,250 catch-up for age 60-63. Maximize total $69,000 contributions. Verify vesting schedules. Notify all employees.

Childcare Credits

Utilize enhanced childcare tax credits. Claim up to $600,000. Apply for eligible small business status. Contract childcare services. Build on-site facilities. Deduct 25% of expenses. Deduct 10% of resource/referral costs. Retain qualified staff. Improve workplace benefits. Review insurance coverage for facilities.

SALT Caps

Note $40,400 deduction cap. Apply to state and local taxes. Track MAGI above $505,000. Monitor phase-down triggers. Evaluate pass-through entity tax (PTET). Use state-level workarounds. Pay state taxes at entity level. Reduce federal taxable income. Coordinate with notary services for documents.

Filing Checklist

• Gather 1099-MISC.
• Gather 1099-K.
• Gather 1099-INT.
• Verify EIN accuracy.
• Reconcile bank statements.
• Categorize vehicle expenses.
• Itemize home office square footage.
• Calculate cost of goods sold.
• List charitable contributions.
• Archive health insurance premiums.
• Track life insurance payments.
• Secure renters insurance records.

Audit Readiness

Store records for seven years. Keep digital backups. Use encrypted drives. Document unusual deductions. Maintain travel logs. Verify contractor W-9s. Track equipment disposal. Keep gift records below $25. Audit personal vehicle use. Review car insurance business riders. Reconcile POS systems. Match deposits to invoices.

Deadlines 2026

• January 15: Q4 Estimates.
• January 31: 1099/W-2 Filing.
• March 15: S-Corp/Partnership returns.
• April 15: C-Corp/Individual returns.
• September 15: Partnership extensions.
• October 15: Individual extensions.

Action Items

Analyze 2026 income. Update accounting software. Purchase required assets. Implement retirement plans. Verify entity status. Book tax preparation.

Contact Directives

Visit MCG Service. View services. Schedule consulting. Subscribe to updates. Call office. Email support.