Staying Ahead of the Tax Code
The tax code is constantly evolving, and business owners bear the brunt of complexity. From the Tax Cuts and Jobs Act provisions set to expire to new regulations on digital payments, staying informed isn’t optional — it’s a competitive advantage.
The best tax strategy isn’t reactive. It’s built on flexibility — planning for multiple outcomes so you’re ready no matter what changes.
Key Tax Changes Affecting Business Owners
| Change | Impact | Action Required |
|---|---|---|
| QBI deduction (Section 199A) expiration | Up to 20% deduction on pass-through income may expire after 2025 | Review entity structure; consider accelerating income into current year |
| Bonus depreciation phase-down | 100% bonus depreciation decreased to 80% in 2023, continuing to decrease 20% annually | Time major equipment purchases strategically |
| SALT deduction cap | $10,000 cap on state and local tax deductions continues | Consider pass-through entity tax elections in applicable states |
| 1099-K reporting threshold | Lower threshold for payment platform reporting | Ensure accurate record-keeping for all payment channels |
| Employee retention credit review | IRS actively auditing ERC claims | Review past claims for accuracy; consult with tax professional |
Strategies for Business Owners in 2026
- Review your entity structure annually: What was optimal when you started may not be optimal now.
- Maximize retirement contributions: Solo 401(k), SEP IRA, and defined benefit plans can shelter significant income.
- Consider a cost segregation study if you own commercial property — it can accelerate depreciation deductions.
- Document everything: The IRS is increasing audit activity for small businesses.
Planning for Uncertainty
With many provisions set to change, the best strategy is flexibility. Work with your financial planner and CPA to run scenarios under both current law and potential changes. Having a plan for multiple outcomes puts you ahead of 90% of business owners.
Our Approach at Hyde Legacy Group
At Hyde Legacy Group, we coordinate closely with your CPA and legal team to ensure your tax strategy, entity structure, and financial plan are all working in alignment. Tax planning isn’t something we think about once a year — it’s woven into every decision we help you make.
Educational content only. Not financial advice. Consult your tax professional for guidance specific to your situation.