Tax Deductions for US Small Businesses: 2026 Guide

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1. 14 July 2026 · corrected by Emir Baycan

   Major fix: corrected Section 179 deduction figures in the featured snippet and a full "2026 Limits" table, rewrote the bonus-depreciation phase-down table to reflect the One Big Beautiful Bill Act's permanent restoration of 100% bonus depreciation, updated the SUV expensing cap from $28,900 to $32,000, and fixed the Qualified Business Income (QBI/Section 199A) deduction, which had wrongly said it was scheduled to expire December 31, 2025, when OBBBA made it permanent (also updated the 2026 phase-in income thresholds to the exact current IRS figures).

   Before

   For 2026, the deduction limit is $1,220,000, with a phase-out threshold of $3,050,000 in total equipment purchases. | Below $191,950 (single) / $383,900 (married filing jointly): Full 20% deduction available... Sunset: scheduled to expire 31 December 2025.

   After

   For 2026, the deduction limit is $2,560,000, with a phase-out threshold of $4,090,000 in total equipment purchases, following the permanent increase enacted by the One Big Beautiful Bill Act (OBBBA) in July 2025. | Below $201,750 (single) / $403,500 (married filing jointly): Full 20% deduction available regardless of business type (2026 figures per IRS Rev. Proc. 2025-32)... Permanence: Made permanent by the One Big Beautiful Bill Act (OBBBA), signed July 4, 2025, removing the previous scheduled sunset on 31 December 2025.

   Why: The featured snippet, Section 179 limits table, full bonus-depreciation phase-down table, and QBI/Section 199A sunset framing all predated the OBBBA (signed July 2025), which permanently doubled the Section 179 caps, restored 100% bonus depreciation permanently, and made the QBI deduction permanent with exact 2026 IRS thresholds replacing the stale rounded figures.

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