Business Owners: Your Window to Cut Your 2026 Tax Bill Closes December 31

by | Oct 8, 2026

ARTICLE | October 08, 2026

Here is the question every business owner should be asking right now: Do you know what your 2026 tax bill is going to look like?

If the answer is "not really," you are not alone -- but the clock is running. For business owners, the fourth quarter is the last window where you have enough financial visibility to project your tax liability and still do something about it. Once December 31 passes, the numbers are locked in. Waiting until your return is prepared next spring does not save you money -- it just tells you how much you owe.

The Tax Landscape Just Changed -- Are You Taking Advantage?

The One Big Beautiful Bill Act (OBBBA) has reshaped the rules in ways that directly benefit closely held businesses -- but only for owners who plan ahead. Here is what is on the table before year-end:

  • 100% Bonus Depreciation is back -- permanently. Equipment and qualifying asset purchases made before December 31 can be fully deducted in the year of purchase. If you have been holding off on a capital investment, the timing of that decision now has major tax implications.
  • Expanded Section 179 limits give you even more flexibility around capital expenditures. Talk to your advisor before you buy -- or before you don't.
  • The 20% Qualified Business Income (QBI) deduction for pass-through entities is now permanent. But "permanent" does not mean automatic. Maximizing it still requires deliberate planning around owner compensation, entity structure, and qualified property thresholds.
  • Immediate deduction of domestic R&D costs has been restored. If your business invests in innovation, this is a meaningful cash flow opportunity -- but you need to be capturing and documenting those costs now.

Year-End Planning Goes Beyond the Headlines

The OBBBA provisions are important, but they are only part of the picture. Effective fourth-quarter planning for business owners also includes decisions around:

  • Year-end bonuses and payroll timing
  • Funding retirement plans and employee benefit programs
  • Writing off bad debts before year-end
  • Reviewing your capitalization and expense policies

For S corporation owners specifically, basis planning, reasonable compensation analysis, and health insurance reporting all carry real year-end consequences. Partnerships face a separate set of considerations -- outside basis calculations, at-risk limitations, and distribution planning among them.

Your Tax Outcome Is Still in Play -- But Not for Long

There is no one-size-fits-all answer for business owners. The interplay between your entity type, compensation decisions, capital expenditures, retirement strategy, and the new OBBBA provisions creates a highly individualized planning picture. That is exactly why the time to act is now -- not after the holidays, and certainly not in April.

KHA Accountants has been a trusted partner to closely held businesses and entrepreneurs for more than 50 years. We understand the complexity of running a business and the tax decisions that come with it. Our team is ready to help you finish 2026 on your terms.

Schedule your year-end tax planning appointment with KHA Accountants before December 31. Visit www.kha.cpa to get started. The deadline does not move -- but your tax outcome still can.

 

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