What New in 2026?
What's New in 2026?
It’s hard to believe we’re already stepping into 2026. Does your tax professional keep you updated on all of the tax law changes that affect you? If your answer is “No” or “I don’t know,” then take a look at this brief on tax law changes that affect you for 2026.
The last year moved fast—and between interest rates, market shifts, and nonstop tax headlines, it’s a small miracle for any of us that we kept everything moving in the same direction.
What finally moved forward in a meaningful way was tax law.
With the passage of the One Big Beautiful Bill Act (OBBBA), several major provisions that were previously scheduled to sunset under the 2017 Tax Cuts and Jobs Act are now permanent law—and others have been decisively reversed. These changes materially affect how individuals, business owners, and especially real estate investors plan going forward.
What’s changed — and what’s now locked in
Here’s the updated landscape heading into 2026:
The Qualified Business Income (199A) deduction is now permanent, preserving up to a 20% deduction for eligible pass-through income.
100% bonus depreciation has been fully restored, reversing the TCJA phase-down and reopening powerful front-loaded depreciation strategies.
1031 exchanges for real property remain fully intact and unchanged.
Cost segregation strategies remain viable and amplified by the return of full bonus depreciation.
Short-term rental and material participation rules remain unchanged, continuing to provide planning opportunities when executed correctly.
The SALT deduction cap has been increased to $40,000, a meaningful shift for high-income taxpayers in high-tax states.
Clean energy and clean vehicle credits were terminated effective September 30, 2025, closing the door on many credits that were previously driving rushed purchases.
IRS compliance and reporting around digital assets continues to expand, regardless of whether you actively trade or invest in them.
This combination of permanence and rollback is significant. It changes not just what strategies are available—but how aggressively and confidently they can be used.
What this means for you
For several years, tax planning lived in a world of “temporary,” “sunsetting,” and “wait and see.” That era has ended.
OBBBA provides clarity—but clarity cuts both ways. Strategies that are now permanent should be optimized. Benefits that were eliminated need to be replaced with smarter planning. And with the return of 100% bonus depreciation, timing and structure matter more than they have in years.
For real estate investors in particular, this is a moment of opportunity:
Accelerated depreciation is back in full force
Entity and income-stacking strategies deserve a fresh look
The expanded SALT cap changes itemization dynamics
Prior clean-energy assumptions may no longer apply
Doing what “worked last year” is no longer enough.
So, what should you be doing right now?
This is the time to step back and evaluate your entire tax strategy, not just your compliance filing.
A tax advisory and planning session allows us to:
Optimize permanent deductions instead of racing sunsets
Leverage restored bonus depreciation correctly
Stress-test your real estate strategy under current law
Identify missed or underutilized opportunities
Build a forward-looking plan that aligns with your financial goals
Whether that means expanding rental holdings, repositioning assets, revisiting retirement funding, or diversifying into other income streams, planning is no longer optional—it’s strategic.
And yes, I have the team and the connections to execute it properly.
Next steps
It is never too early to schedule a tax advisory and planning session. My calendar is currently open through the end of February, and planning slots do fill quickly during tax season.
If this email raised questions—or confirmed what you’ve already been thinking—the next step is simple:
👉 Book a 30-minute tax planning meeting.
Let’s make sure your strategy is aligned not just for filing season—but for the years ahead.
