For qualifying property acquired and placed in service in 2026, the bonus depreciation percentage is 100%, due to the One Big Beautiful Bill Act (OBBBA) permanently restoring it, superseding the previous phase-out schedule that would have dropped it to 20%. This applies to assets acquired and put into use after January 19, 2025, with IRS guidance (Notice 2026-11) clarifying these rules for the 2026 tax year.
For 2026, bonus depreciation is permanently set at 100% for qualified property acquired and placed in service after January 19, 2025, thanks to the One Big Beautiful Bill Act (OBBBA), allowing immediate expensing of assets like machinery, equipment, and certain improvements, though transitional rules let some taxpayers elect a 40% rate for the first tax year ending after that date, as detailed in IRS Notice 2026-11, making it a powerful tool for businesses to accelerate deductions.
The OBBB — which was the Trump administration's signature tax and domestic policy bill — officially reinstated 100% bonus depreciation for property acquired after January 19, 2025, and placed in service after that same date.
In 2023, the bonus depreciation rate has generally phased down to 80%. Under current tax law, the bonus depreciation rate will continue to decrease 20% each year until it completely phases out in 2027.
Section 179 deductions are also limited to annual taxable business income, meaning that a business cannot deduct more money than it made. Bonus depreciation does not have this limit and can be used to create a net loss.
Limited circumstances for stand-alone 179 benefits.
The Section 179 expense limit and phase-out threshold ($2,560,000 and $4,090,000, respectively, for 2026) are now permanent parts of the tax code that are adjusted annually for inflation.
The IRS $600 rule refers to a change in reporting requirements for third-party payment apps (like Venmo, PayPal) for taxable income from goods and services, where platforms must send a Form 1099-K if you receive over $600 in a year, intended to capture gig economy/side hustle income, though delays and phased implementation have adjusted the timeline, with current rules for 2024 using a higher threshold ($5,000) before fully phasing to $600 for future years, but remember all taxable income, regardless of form, must always be reported.
To avoid the 22% tax bracket (or any higher bracket), focus on reducing your taxable income through strategies like maxing out 401(k)s and HSAs, deferring bonuses, tax-loss harvesting, smart charitable giving, and strategic asset location, understanding that higher rates only apply to income within that bracket, not your entire income.
On July 4, 2025, President Trump signed the 2025 tax reform into law as P.L. 119-21, Republicans' “One Big Beautiful Bill.” Among its most impactful provisions is the permanent restoration of 100% bonus depreciation, offering long-term clarity for tax planning and capital investment strategies.
The main downsides of bonus depreciation include losing future deductions by taking them upfront, potentially increasing future taxable income, facing higher "recapture" taxes if the asset is sold, and dealing with complex rules or state-level nonconformity, making it less beneficial for short-term investors or those in lower tax brackets who might need deductions later. It also creates large upfront tax benefits that might not align with book income, affecting financing, and rules change frequently, requiring constant tax planning.
For 2026, the federal estate and gift tax exemption is set to increase to $15 million per individual, up from $13.99 million in 2025, thanks to the One Big Beautiful Bill Act (OBBBA) signed in 2025, making this higher amount permanent and indexed for inflation. This means a married couple could potentially shield up to $30 million from federal estate and gift taxes, with the top tax rate remaining at 40% for amounts exceeding the exemption.
Yes, you can still take 40% bonus depreciation in 2025 for property acquired on or before January 19, 2025, but for property acquired after January 19, 2025, 100% bonus depreciation is generally reinstated under the One Big Beautiful Bill Act (OBBBA) (OBBBA), though you can elect the 40% rate if it's more beneficial. The OBBBA effectively reversed the previous phase-down, making 100% bonus depreciation permanent for new acquisitions after the cutoff date, with options for strategic planning.
Yes, in 2024, each parent could gift $18,000 to a child (totaling $36,000 per child for the couple) without tax implications, and for 2025, that amount increased to $19,000 per parent ($38,000 per child) because the annual gift tax exclusion is adjusted for inflation, requiring separate checks for each parent to utilize the full amount, according to TurboTax, Yahoo Finance, Guardian Life, IRS (.gov), and Mercer Advisors.
At a glance. If your total income is between £100,000 and £125,140, the tapering of the personal allowance means you could end up paying an effective 60% income tax rate. Almost 725,000 workers will fall into the 60% tax trap in 2025-26, according to HMRC, up from about 300,000 in 2017-2018.
The $1,000 a month rule is a retirement guideline suggesting you need about $240,000 saved for every $1,000 per month in desired income, based on a 5% annual withdrawal rate (5% of $240k is $12k/year, or $1k/month). It's a simple way to set savings goals, but it doesn't account for inflation, taxes, or other income like Social Security, so it's best used as a starting point, not a complete plan.
Reporting cash payments
A person must file Form 8300 if they receive cash of more than $10,000 from the same payer or agent: In one lump sum. In two or more related payments within 24 hours. For example, a 24-hour period is 11 a.m. Tuesday to 11 a.m. Wednesday.
The "20k rule" refers to the traditional IRS threshold for reporting income from payment apps and online marketplaces on Form 1099-K: over $20,000 in gross payments AND more than 200 transactions in a calendar year. While a law (the American Rescue Plan) temporarily lowered the threshold to $600, recent legislation, the One Big Beautiful Bill Act (OBBBA) (OBBBA), has reinstated the $20,000/200-transaction rule for tax years starting in 2025, providing relief for casual sellers and gig workers.
In November 2024, the IRS introduced the following phased approach for the threshold: Payments over $5,000 for 2024. Payments over $2,500 for 2025. Payments over $600 for 2026 and later.
New tax brackets, higher standard deductions and expanded credits are now in effect — changes that could boost paychecks and lower income taxes for many Americans in 2026 and beyond.
Starting Jan. 1, 2026, the basic exemption amount increases to $15 million per person. Any remaining unused exclusion amount upon a married person's death is portable and transferred to the surviving spouse, effectively sheltering $30 million from federal estate and gift tax for a married couple.