At Haworth & Company, we keep an eye on the latest IRS updates so you don’t have to. As a small business owner, you already juggle enough – so our focus is on the tax changes and announcements that could matter most to you. Check out the latest below and let us know if you have any questions!
Who:
Treasury and IRS
What:
When:
1/14/26
Why Should You Care?
Depreciation can be a big deduction for small businesses. The One Big Beautiful Bill allows 100% additional first-year depreciation for eligible property acquired after 1/19/25. This notice also addresses elections that taxpayers can make, such as:
The new IRS Notice clarifies that you have options. While 100% is the “default,” you can make specific elections to fit your business strategy, such as:
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Choosing a lower rate: You can elect to take a 40% or 60% deduction instead of the full 100% for the first tax year (useful for long-term tax planning).
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Specialized Assets: New rules allow bonus depreciation for qualified sound recording productions and specific agricultural plants.
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Component Strategy: You can now treat specific parts of a large construction project as eligible for 100% depreciation, even if the whole project doesn’t qualify.
The Bottom Line: These rules are complex, but they offer significant cash-flow opportunities. If you’ve purchased equipment or started a construction project in the last year, let’s chat to make sure you’re choosing the best election for your 2025/2026 filings.
Disclaimer: This blog content is for general informational purposes only, should not be considered professional advice, and does not establish a client relationship. Haworth and Company is not liable for the accuracy of this information or the content of external links. Please use this information at your own risk, ensuring it suits your specific needs, and consult with a certified tax professional for your own personalized guidance.