How Business Accounting and Business Bookkeeping Can Help
As we head into a new filing season, several federal tax changes will affect how small businesses plan, track, and report their finances. Strong business accounting and business bookkeeping will be critical to capture new deductions, update payroll withholding, and optimize year‑end decisions. Below are the highlights and why they matter—along with practical tips to align your books and systems. For tailored support, visit .
Bigger Section 179 expensing limits
- The maximum Section 179 deduction remains available to immediately expense qualifying business property, and the Internal Revenue Code details how to elect, limit, and carry forward amounts you can’t use in the current year .
- For 2025 and beyond, the One Big Beautiful Bill Act (OBBBA) increased the Section 179 dollar limit to $2,500,000 and raised the phase‑out threshold to $4,000,000, with inflation adjustments starting after 2025—key planning levers for equipment-heavy businesses .
- Mechanics to elect and allocate Section 179, recapture if business use drops, and carry forward disallowed amounts are unchanged; make sure your fixed asset schedules and depreciation reports align with the rules in the regulations and carryover rules .
- Practical bookkeeping tip: Track acquisition dates, placed‑in‑service dates, business‑use percentages, and entity‑level elections to support Form 4562 and your depreciation workpapers .
Bonus depreciation and energy deduction changes
- OBBBA updated bonus depreciation under Section 168, including a 100% allowance with an elective transitional rate for certain first taxable years ending after January 19, 2025 (plus related tweaks for specified plants and productions). If you rely on bonus for cash‑flow planning, revisit placed‑in‑service timing and elections with your accountant .
- The energy‑efficient commercial buildings deduction under Section 179D will not apply to projects whose construction begins after June 30, 2026, which affects multi‑year retrofit planning and capitalization analyses .
- Practical bookkeeping tip: Keep detailed job‑costing and project documentation—bonus and energy deductions depend on placed‑in‑service dates, certification, and capitalizable components. Publication 946 remains a useful reference for MACRS and property classifications .
