Looking for a Stress-Free Tax Season? Here Are 10 IRS Updates Every Entrepreneur Should Know

Bonus Depreciation

• Restore 100% bonus depreciation.
• Apply to new machinery.
• Apply to used equipment.
• Apply to computers.
• Apply to business furniture.
• Deduct full cost immediately.
• Place asset in service.
• Avoid 5-year schedules.
• Maximize year-one write-offs.
• Purchase qualifying vehicles.
• Document purchase dates.
• Keep delivery receipts.
• Record serial numbers.
• Verify usage percentage.
• Claim Section 179.
• Limit: $2.5 million.
• Phase-out: $3.63 million.
• Capitalize manufacturing equipment.
• Expense tech infrastructure.
• Upgrade HVAC systems.
• Buy office security.
• Invest in solar.
• Utilize tax preparation services.
• Consult business advisors.

R&D Expensing

• Restore domestic R&D expensing.
• End 5-year amortization.
• Deduct costs immediately.
• Apply to software development.
• Apply to product design.
• Apply to engineering lab.
• Track domestic wages.
• Separate foreign research.
• Identify supplies costs.
• Log computer leases.
• Document patent legalities.
• Certify research location.
• Record testing phases.
• Archive blueprints.
• Save prototype invoices.
• Claim credit simultaneously.
• Verify eligible activities.
• Avoid audit risk.
• Use payroll records.
• Integrate payroll services.
• Track contractor time.
• File Form 6765.

Interest Deductions

• Calculate 30% limit.
• Use EBITDA-like base.
• Exclude depreciation.
• Exclude amortization.
• Increase deductible amount.
• Lower taxable income.
• Review credit lines.
• Analyze equipment loans.
• Check mortgage interest.
• Evaluate vehicle financing.
• Monitor debt-to-equity.
• Forecast annual interest.
• Optimize capital structure.
• Shift to debt.
• Reduce equity draws.
• Align with ATI.
• Track floor plan.
• Update accounting software.
• Review business consulting.

QBI Permanence

• Secure 20% deduction.
• Verify pass-through status.
• Qualify as S-Corp.
• Qualify as LLC.
• Qualify as Partnership.
• Qualify as Sole Proprietor.
• Ignore expiration dates.
• Plan long-term profits.
• Review wage limits.
• Review asset limits.
• Calculate W-2 wages.
• List unadjusted basis.
• Determine SSTB status.
• Exclude capital gains.
• Exclude interest income.
• Apply to 2026.
• Apply to 2027.
• Use business formation services.
• Set up S-Corp.
• Maximize owner salary.
• Balance distributions.

Tax Brackets

• Update 2026 rates.
• Married Filing Jointly:
  • 10%: $0 – $23,700.
  • 12%: $23,701 – $96,300.
  • 22%: $96,301 – $205,300.
  • 24%: $205,301 – $391,350.
  • 32%: $391,351 – $497,250.
  • 35%: $497,251 – $768,700.
  • 37%: Over $768,700.
• Single Filers:
  • 10%: $0 – $11,850.
  • 12%: $11,851 – $48,150.
  • 22%: $48,151 – $102,650.
  • 24%: $102,651 – $195,675.
  • 32%: $195,676 – $248,625.
  • 35%: $248,626 – $640,600.
  • 37%: Over $640,600.
• Standard Deductions:
  • Married: $32,200.
  • Single: $16,100.
  • Head of Household: $24,150.
• Adjust withholding tables.
• Notify payroll departments.
• Use notary services.

SALT Cap

• Use new limit.
• Deduct $40,000.
• Apply to state tax.
• Apply to local tax.
• Apply to property tax.
• Benefit high-tax states.
• Index for inflation.
• Plan 2026 payments.
• Review 2027 cap.
• Track real estate.
• Track school taxes.
• Combine with sales tax.
• Choose highest deduction.
• Substantiate all payments.
• File Schedule A.
• Review itemization.
• Exceed standard deduction.
• Audit proof documentation.

Childcare Credits

• Claim expanded credit.
• Small business limit: $600,000.
• General limit: $500,000.
• Fund on-site centers.
• Contract third parties.
• Provide employee subsidies.
• Retain skilled workers.
• Reduce turnover costs.
• Verify facility licensing.
• Meet IRS requirements.
• Calculate 25% of costs.
• Add 10% resource costs.
• Report on Form 8882.
• Offset payroll tax.
• Offset income tax.
• Invest in families.
• Market as benefit.
• Review life insurance options.

Retirement Limits

• Contribution Limits 2026:
  • 401(k) Deferral: $24,500.
  • Catch-up (50+): $8,000.
  • Catch-up (60-63): $11,250.
  • SEP IRA: $69,000.
  • SIMPLE IRA: $17,000.
  • SIMPLE Catch-up: $4,000.
  • IRA Limit: $7,500.
  • IRA Catch-up: $1,100.
• Maximize employee deferrals.
• Utilize profit sharing.
• Set up Solo 401(k).
• Fund by tax deadline.
• Lower adjusted gross.
• Build tax-free Roth.
• Build tax-deferred Traditional.
• Review plan documents.
• Automate payroll deductions.
• Increase owner contributions.
• Consult tax advisors.

Mileage Rates

• Record 72.5 cents.
• Use for business.
• Track every mile.
• Use digital logs.
• Save gas receipts.
• Log repair costs.
• Log insurance premiums.
• Compare actual vs mileage.
• Choose highest benefit.
• Apply to deliveries.
• Apply to sales calls.
• Apply to errands.
• Apply to client visits.
• Start at home office.
• Exclude commuting miles.
• Maintain vehicle records.
• Photograph odometers.
• Link car insurance.

Reporting Rules

• Ignore 1099-K $600 rule.
• Wait for higher thresholds.
• Track Venmo payments.
• Track PayPal income.
• Monitor Zelle receipts.
• Reconcile bank statements.
• Report all revenue.
• Avoid under-reporting.
• Expect higher scrutiny.
• Use accounting software.
• Sync bank feeds.
• Categorize transactions daily.
• Prepare 1099-NEC.
• File 1099-MISC.
• Hire registered agent services.
• Meet filing deadlines.
• Avoid late penalties.
• E-file all forms.

Required Actions

• Schedule CPA review.
• Meet with MCG Service.
• Model 2026 liability.
• Buy equipment now.
• Accelerate R&D projects.
• Increase retirement funding.
• Setup childcare benefits.
• Update payroll tables.
• Log business mileage.
• Collect contractor W-9s.
• Form LLC today.
• Elect S-Corp status.
• Hire tax experts.
• Secure renters insurance.
• Protect business assets.
• File early.
• Stay compliant.
• Save money.

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