As the year winds down, it’s a good time to take a closer look at your business finances and consider whether there are steps you can take now to prepare for tax season. A little planning before December 31 can make a big difference in how you approach your taxes and your financial goals for the year ahead.
With the One Big Beautiful Bill Act, signed into law on July 4, 2025, several federal tax provisions have changed for 2026. Depending on your business, these changes may create opportunities to review deductions, plan equipment purchases, or revisit retirement contributions.
Every business is different, and what works for one owner may not be the right fit for another. Here are five areas worth discussing with H&B CPA before the year comes to a close.
1. Review Your Equipment and Business Investment Plans
One significant change is the restoration of 100% bonus depreciation for qualifying property acquired after January 19, 2025. Eligible businesses may be able to deduct the full cost of qualifying equipment and other property in the year it is placed in service rather than recovering the cost over several years. Source: IRS guidance on business tax changes.
If you’ve been thinking about purchasing new equipment, upgrading computers, or making other investments in your business, this may be a good time to review your plans. Depending on the type of purchase and when it is placed in service, you may be eligible to deduct some or all of the cost. That said, we always encourage business owners to look at the big picture. A tax deduction is helpful, but spending money you don’t need to spend just to lower your tax bill rarely makes good financial sense. Before making a purchase, let’s look at your numbers together and determine whether it’s the right move for your business and your cash flow.
2. Understand the Updated Section 179 Deduction
Section 179 allows businesses to elect to expense qualifying depreciable property rather than depreciating it over time. Under the new law, the deduction limit increased for tax years beginning after December 31, 2024. For 2026, the IRS’s published draft of Publication 946 lists a maximum Section 179 deduction of $2.56 million, with a phaseout beginning when qualifying property placed in service exceeds $4.09 million. These amounts are subject to the applicable rules and final IRS guidance. Source: IRS Publication 946.
Section 179 and bonus depreciation can both offer valuable tax savings, but the rules are a little different. Let’s take a look at what you’re planning to purchase, where your business stands financially, and which option makes the most sense for you, both now and down the road.
3. Revisit the Qualified Business Income Deduction
If you own a sole proprietorship, partnership, or S corporation, you may be eligible for the Qualified Business Income (QBI) deduction, which can allow you to deduct up to 20% of qualifying business income. Of course, there are a few rules to keep in mind, and not every business will qualify for the same deduction.
Your taxable income, the type of business you operate, and factors such as employee wages can all play a role in determining what you’re eligible to claim. Certain service businesses may also have additional limitations. As we approach year-end, it’s worth taking a closer look at your numbers. A change in income or business structure can affect your tax picture, and a little planning now can help you make more informed decisions before December 31.
4. Evaluate Retirement Contributions and Employee Benefits
As you look ahead to the end of the year, don’t forget to give your retirement plan a little attention, too. Are you saving for your own future or helping your employees plan for theirs? There may be opportunities to make the most of your retirement contributions while also benefiting your tax situation.
Depending on your business and your goals, a SEP IRA, SIMPLE IRA, or another qualified retirement plan may be worth considering. Contribution limits, deadlines, and eligibility rules vary, so it’s important to understand your options before making any decisions.
This is also a good time to review your employee benefits. Recent tax law changes expanded the federal tax credit for qualifying paid family and medical leave programs and broadened the treatment of certain student loan payments under employer educational assistance programs. These provisions have specific requirements, so be sure to review the details with your CPA.
5. Schedule a Year-End Tax Planning Meeting
Solid tax planning starts with knowing where your business stands financially. Before the year comes to a close, take some time to review your income, expenses, cash flow, and estimated tax payments. It’s also helpful to look at what you expect to earn and spend between now and December 31. This is where sitting down with your CPA can really make a difference. Together, you can look at your numbers, talk through the tax law changes that may affect you, and decide whether there are steps worth taking before year-end.
Remember, there’s no one-size-fits-all approach to tax planning. What makes sense for one business may not be right for another. The goal is to make thoughtful decisions that help you manage your tax obligations while keeping your business’s financial health and future goals in mind.
Make Year-End Decisions With Confidence
The most effective tax strategy connects your tax obligations with your broader financial goals. Reviewing the rules now can help you make more informed decisions about investments, retirement, and business growth.
At H&B CPA, we believe good tax planning starts with understanding your business and knowing what to expect. We work alongside you throughout the year to help you make informed decisions and feel confident about your finances.
If you haven’t had a year-end planning conversation yet, now is a great time. Let’s review where things stand, talk through your options, and make a plan for the year ahead.
Let’s connect today, schedule here https://www.austinaccountingservices.com/clients/