Claim QBI
Permanent 20% deduction. Section 199A remains. Applies to sole proprietorships, partnerships, LLCs, S-corps. File Form 8995. Verify qualified business income.
Check 2026 thresholds. $203,000 single. $406,000 married filing jointly. Monitor LLC compliance for new updates. Avoid phase-out traps.
Check SALT
Higher cap active. One Big Beautiful Bill (OBBBA) increased limits. $40,400 cap for 2026. Review itemized deductions. Compare against standard deduction. $32,200 for married filing jointly.
Analyze MAGI impact. Phasedown starts at $505,000 income. Track state tax payments. Consult the 2026 tax strategy checklist for details.
Use Expensing
Section 179 expanded. $2.56 million limit. Phase-out starts at $4.09 million. Expense equipment immediately. Purchase technology. Update infrastructure.
Bonus depreciation 100% permanent. No more phase-downs. Apply to qualifying property. Review deduction changes before filing. Coordinate with capital budgets.
Review Credits
Childcare credit enhanced. $500,000 maximum. $600,000 for small businesses. Subsidize employee childcare. Claim SECURE 2.0 credits. Offset retirement plan startup costs.
Note expired incentives. Clean commercial vehicle credit suspended. Energy-efficient building deduction ends June 30, 2026. Verify in-service dates.
Avoid Errors
Don't ignore QBI. Verify SSTB status. Professional services face stricter limits. Check Form 8995-A calculations. Don't use outdated 2025 limits.
Separate meals and entertainment. Entertainment is 0% deductible. Meals remain 50%. Train bookkeepers. Prevent common compliance mistakes. Categorize expenses correctly.
Update Payroll
Adjust wage bases. Social Security base $184,500. Self-employment tax 15.3%. Calculate additional 0.9% Medicare tax for high earners.
Update accounting software. Revise quarterly estimates. Use small business tax checklists for accuracy. Prevent underpayment penalties.
Take Action
Download checklists. Review entity types. Ensure LLC formation status. Monitor IRS rule shifts.
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