Part 3: Smart Tax Planning for Small Businesses After the 2026 IRS Changes

Expense Assets

• Utilize 100% bonus depreciation.
• Apply to qualifying property.
• Ensure equipment is in service.
• Utilize Section 179 deductions.
• Note $2,560,000 deduction limit.
• Monitor $4,090,000 phase-out threshold.
• Acquire machinery.
• Purchase software.
• Update office equipment.
• Document purchase dates.
• Record service dates.
• Consult small business tax planning experts.

R&D Deductions

• Expense domestic research costs.
• Apply full immediate deduction.
• Verify Section 174 compliance.
• Review 2023 retroactive claims.
• Amend prior-year returns.
• Identify qualified research activities.
• Track labor costs.
• Itemize material expenses.
• Separate international R&D.
• Amortize foreign costs.
• Calculate 15-year recovery periods.
• Secure tax preparation for small business.

Entity Structure

• Evaluate LLC compliance.
• Review is your LLC compliant.
• Compare S-Corp tax benefits.
• Analyze C-Corp advantages.
• Minimize self-employment taxes.
• Reassess legal structure.
• Execute business formation changes.
• Update Articles of Organization.
• File election forms.
• Review operating agreements.

Deduction Strategy

• Optimize QBI deduction.
• Verify income thresholds.
• Maximize 20% pass-through credit.
• Leverage SALT deduction.
• Claim $40,400 cap (MFJ).
• Claim $20,200 cap (Single).
• Deduct state income taxes.
• Deduct local property taxes.
• Track business interest.
• Apply interest deduction limits.
• Manage carryforward amounts.
• Review the tax checklist for 2026.

Payroll Setup

• Execute payroll setup services.
• Configure e-filing systems.
• Submit 1099 forms.
• Automate tax withholdings.
• Schedule estimated payments.
• Avoid late penalties.
• Track employee benefits.
• Reconcile quarterly reports.
• Verify worker classifications.

Retirement Planning

• Maximize 401(k) contributions.
• Fund SEP IRAs.
• Establish SIMPLE IRAs.
• Reduce taxable income.
• Meet contribution deadlines.
• Review employer match options.
• Document plan participation.
• Forecast future distributions.

Cash Management

• Time business income.
• Accelerate year-end expenses.
• Defer client billings.
• Prepay eligible costs.
• Review profit/loss statements.
• Monitor cash flow.
• Maintain digital receipts.
• Categorize every transaction.

Insurance Protection

• Contact a life insurance agent.
• Secure business owner policies.
• Review renters insurance.
• Update car insurance.
• Evaluate liability coverage.
• Protect business assets.
• Mitigate financial risks.

Professional Guidance

• Hire MCG Service.
• Request tax planning.
• Outsource payroll setup.
• Seek registered agent services.
• Utilize notary services.
• Finalize tax season strategy.
• Ensure OBBBA compliance.