15 January 2026 / Wajahat Mehmood l Managing Director at Astrum Global LLC
The 2026 tax landscape has fundamentally shifted. With the passage of the One Big Beautiful Bill Act (OBBBA), the long-standing “wait and see” approach to accounting and tax planning has officially become a liability. This sweeping legislation locks in many of the 2017 tax cuts permanently while introducing aggressive new incentives aimed squarely at small and mid-sized businesses.
For business owners, the message is clear: clean books and proactive planning are no longer optional—they are required. Below are the five critical changes you need to make now to stay compliant and fully benefit from the new law.
Over the past few years, businesses watched bonus depreciation gradually phase out, forcing many owners to delay purchases or spread deductions over time. The OBBBA has reversed course entirely.
You can once again deduct 100% of the cost of qualified equipment, machinery, and certain qualified production property in the year the asset is placed in service. This makes capital investment far more tax-efficient and restores depreciation as a powerful planning tool rather than a slow recovery mechanism.
For business owners, this changes the decision-making process around growth. If you were postponing equipment upgrades, technology investments, or office improvements, 2026 is the year to act. The key is execution. Your bookkeeping must precisely track purchase dates, in-service dates, and asset classification. Without that level of detail, even generous depreciation rules cannot be fully claimed.
One of the most discussed provisions of the OBBBA is the introduction of “No Tax on Tips” and “No Tax on Overtime” for employees. While this provides meaningful relief for workers, it significantly increases compliance responsibilities for employers.
Under the new rules, employees may deduct up to $25,000 in tips and $12,500 in overtime premium pay (or $25,000 for joint filers) from their federal taxable income. However, this benefit only applies if employers properly track and report the information.
Starting in 2026, payroll systems must clearly separate base wages, qualified overtime premium pay, and tips. The IRS now requires these amounts to be explicitly reported on Form W-2. If your payroll setup cannot distinguish these categories, your employees may lose deductions—and your business could face compliance exposure. Updating payroll workflows now is not just advisable; it is essential.
For years, the Section 199A Qualified Business Income (QBI) deduction felt like a ticking clock. Business owners planned cautiously, unsure whether the 20% deduction would survive future legislation. The OBBBA has removed that uncertainty.
The 20% QBI deduction is now permanent for most pass-through entities, including LLCs, S corporations, and partnerships. Even more notably, the law introduces a $400 minimum deduction for taxpayers with at least $1,000 of QBI.
This change brings smaller businesses and side hustles squarely into the planning conversation. Even micro-businesses must maintain clean, defensible books to prove qualified income. Without accurate income tracking and proper categorization, the deduction—small or large—can be lost entirely.
One of the most powerful—and often overlooked—changes under the OBBBA is the restoration of immediate R&D expensing for small businesses. In recent years, companies were forced to amortize domestic research and development costs over five years, significantly delaying tax benefits.
Now, businesses with gross receipts under $31 million may once again deduct domestic R&D costs immediately. Even more importantly, this change allows eligible businesses to amend 2022–2024 tax returns to reclaim deductions they were previously forced to spread out.
This is not a theoretical benefit—it is a real cash opportunity. Businesses involved in software development, process improvement, engineering, product design, or internal innovation should consider a formal look-back review. Without proper bookkeeping and cost documentation, however, these retroactive deductions cannot be claimed.
State and local tax (SALT) deductions have long been a pain point, especially for business owners in high-tax states. The OBBBA provides temporary relief by increasing the SALT cap from $10,000 to $40,000 for 2026 for taxpayers earning under $500,000.
This change materially affects year-end tax planning. The higher cap alters the analysis of whether it is more beneficial to itemize deductions or take the standard deduction. For many business owners, the answer will no longer be obvious.
Accurate projections are essential. Tax planning for 2026 should be modelled under both scenarios using real numbers—not estimates—to determine which approach produces the greatest savings.
Navigating the new OBBBA requirements demands expert guidance, and this is where Astrum Global LLC stands apart as a trusted tax consultant in the USA delivering full-scale accounting services in the USA for small and mid-sized businesses. Recognized among the top accounting firms in the USA and competing with the top accounting companies in the USA, Astrum Global provides specialized solutions ranging from compliance-ready payroll structuring to advanced tax optimization strategies.
Whether you need a dedicated tax accountant in New York, a team of experienced tax accountants in New York, or reliable Chicago accounting & tax services, our professionals ensure accuracy, compliance, and peace of mind. We also lead in bookkeeping outsourcing services USA, offering scalable bookkeeping service in USA, professional bookkeeping services USA, and fully integrated accounting and bookkeeping services in USA. From startups to established enterprises, our USA bookkeeping services are designed to support real-time reporting, audit readiness, and maximum tax efficiency, so you don’t just comply with the OBBBA, you profit from it.
The One Big Beautiful Bill Act offers substantial rewards for businesses that are organized, proactive, and well-advised. At the same time, it introduces stricter reporting requirements—particularly around payroll and R&D—that leave little room for error.
At Astrum Global LLC, we specialize in helping U.S. business owners bridge the gap between day-to-day bookkeeping and high-level tax strategy. Clean books are no longer just about compliance—they are the foundation for capturing every advantage the OBBBA makes available.
If you want to turn these legislative changes into real tax savings instead of missed opportunities, now is the time to act.
