OBBBA Tax Planning for Small Business 2025-2026

How Small Business Owners Can Use the New Rules to Slash Taxes Before 2026

Most small business owners will lose thousands in 2025 and 2026 because they do not understand what the One Big Beautiful Bill Act really changed. The rules around the QBI deduction, Section 179 expensing, bonus depreciation, and even the standard deduction have shifted the ground under every LLC, S corporation, and solo 1099. This is the window where business owners either protect their money or surrender it quietly to the IRS. And this is exactly where Steve Perry, EA steps in.

If you wait until tax season it will already be too late to fix 2025.
If you ignore entity structure or compensation strategy you may forfeit five figures.
If you buy equipment, without understanding the new rules, you may lose deductions you were counting on.

Schedule a strategy session today before the IRS closes your planning window.

The New QBI Deduction Rules Are a Gift, But Only if You Know How to Capture Them

Under the One Big Beautiful Bill Act, the Qualified Business Income deduction becomes permanently available and more predictable. This is the twenty percent deduction that can instantly reduce a profitable small business owner’s tax bill. But here is the trap. QBI is deeply tied to how you pay yourself, how your entity is set up, and how much depreciation you take. Without guidance it is frighteningly easy to disqualify yourself or shrink the deduction to something meaningless.

Small business owners with profits around two hundred fifty thousand feel the most pressure. At that level the IRS scrutinizes compensation, entity elections, equipment purchases, and even the timing of deductions. A single mistake can cost thousands. Steve Perry, EA knows exactly how to prevent those pitfalls and how to rebuild the strategy if things have already gone sideways.

Book a call and ask what your QBI should be. The answer will either calm you or alarm you, and both are valuable.

Section 179 and Bonus Depreciation Are Now Strategic Weapons

The new rules push Section 179 even higher and increase the ability for small businesses to expense equipment instantly. Bonus depreciation remains powerful, though the timing matters more than ever. Used correctly these deductions can erase taxable income. Used incorrectly they can destroy QBI, distort S corporation reasonable compensation, or trap you in a higher bracket next year.

This is why Steve Perry, EA builds planning models that consider the entire picture
Profit expectations
Compensation targets
Equipment life cycles
Future income projections
Cash flow reality

He shows small business owners which equipment to buy, when to buy it, and whether Section 179 or bonus depreciation creates the better long term outcome. Most accountants simply record what happened. Steve Perry engineers what should happen.

Before and After-Tax Scenarios for a Typical Two Hundred Fifty Thousand Profit Business

Here is where the fear becomes real. Assume a small business owner generates two hundred fifty thousand in net business profit.

Scenario One

The owner files as a sole-proprietor
Pays self incorrectly
Takes random depreciation deductions
Has no formal tax plan

Approximate federal income tax: sixty-two to seventy thousand depending on other factors.
QBI deduction: often reduced or lost entirely.
Total financial impact: owner loses between twelve and twenty-six thousand they could have kept.

Scenario Two

Same owner
Same two hundred fifty thousand profit
But this time the entity is optimized
Reasonable compensation is set correctly
Equipment purchases are timed under the new OBBBA rules
Section 179 is used precisely
Bonus depreciation is modeled
Distributions are planned
Estimated tax liabilities are forecasted

Approximate federal income tax: as low as forty-four thousand depending on facts.
QBI deduction: full twenty percent captured.
Total savings: eighteen thousand to twenty-six thousand preserved.

This is not theory. This is the difference between uninformed filing and engineered tax planning. Steve Perry, EA walks clients through both numbers so they can see the danger of waiting and the power of acting early.

Send your books over and ask Steve what your before and after looks like. You will not forget the answer.

Higher Standard Deduction Means Some Strategies Change Completely

The One Big Beautiful Bill Act increases the standard deduction again. For many business owners this means bundled deductions, timing of expenses, charitable strategies, and even home office deductions behave differently. The IRS will not warn you if you accidentally bury deductions that are no longer advantageous. The agency will happily take the money and move on.

This is why a small business tax plan under OBBBA must be built around
Entity structure decisions for 2025 and 2026
Compensation strategy that maximizes QBI
Equipment schedules tied to Section 179 and bonus depreciation
Cash management for estimated taxes
Profit forecasting to prevent bracket creep

Every part interacts. Nothing stands alone. A high deduction in the wrong place can destroy a better deduction somewhere else.

The Next Twelve Months Are the Most Important Window Small Business Owners Will See for Years

The IRS is not subtle. The agency is aggressively funded. Examinations of small business owners are increasing. Steve Perry, EA stands in the gap and answers the letters, the threats, and the notices calmly while his clients sleep at night. He takes the new law and uses it as a shield. He is the person who knows how to structure a business so the IRS cannot take more than the law allows.

Owners who move now will lock in their entity strategy, capture the full QBI deduction, and exploit the newest expensing rules before the landscape shifts again. Owners who delay will wake up in early 2026 and discover the opportunity closed while they were busy running their business.

Call today at (678) 717-9818 or email [email protected] to secure your tax planning session or Message Steve directly on LinkedIn

Final Warning and Final Opportunity

A profitable business without an OBBBA tax strategy is simply giving up money. The IRS will not stop you from overpaying. The law now rewards owners who plan and punishes those who guess. The difference is expert guidance, and that is exactly what Steve Perry, EA delivers.

When you are ready to protect your profit, schedule your planning call.