If you earn income, invest or own a business in the U.S., November and December 2025 are critical. Many rules created in 2017 end on December 31, 2025, and starting in 2026 taxes could go up for many individuals and small businesses. You still have time to get organized and pay less, but you need to act before the end of the year.

What is scheduled to change in 2026 (explained simply)

• Tax rates and the standard deduction: in 2026 the previous rules return, with higher rates for many income levels and a smaller standard deduction. Standard deduction = a fixed amount you subtract from your income before calculating your taxes. Most taxpayers use it today.
• The $10,000 SALT cap expires: SALT = “State And Local Taxes,” meaning state and local taxes such as property tax and state income tax. The current $10,000 cap ends after 2025.
• The 20% Section 199A deduction for “pass-through” businesses expires: if you report income on Schedule C (self-employed), through a partnership or an S-Corp, today you can deduct up to 20% of your qualified business income (QBI). This ends after 2025.
• “Bonus” depreciation keeps going down: the accelerated depreciation that lets you quickly deduct part of the cost of equipment and certain improvements is already at 40% for 2025 and drops further in 2026.
• The Child Tax Credit could shrink and its refund rules could change: in 2026, lower amounts and stricter limits return.

Practical steps to take before December 31, 2025

For individuals and families

• Consider whether it makes sense to “accelerate” income into 2025: if you would pay a higher rate in 2026, you could pull income forward into 2025 (for example, by doing a Roth conversion of part of your IRA) to take advantage of current rates. Roth conversion = moving money from a traditional IRA to a Roth IRA; you pay taxes today, and it grows tax-free in the future.
• Use the 0% capital gains bracket if you qualify: if your income is low or moderate, you could sell investments at a gain and pay 0% tax in 2025. That way you “reset” your cost basis without paying tax.
• Smart giving: “bunching” several years of donations into 2025 can help you itemize deductions if you exceed the standard deduction. If you don't itemize, consider donating appreciated assets (stocks) to an organization to avoid tax on the gain.
• Plan your SALT payments: if you don't itemize now and think you will in 2026 because the $10,000 cap ends, it could make sense to defer property tax or state tax payments to January 2026. This depends on your state and on whether you'll itemize; review the plan with us.
• Make the most of health and savings accounts: check your FSA balances (some “expire” at year-end) and consider contributing to an HSA if you have a high-deductible health plan.

For business owners and the self-employed

• Close out 2025 by taking advantage of the 199A deduction: if you qualify, consider strategies to “lock in” your 2025 profits and capture the 20% deduction before it ends in 2025. Adjusting salary payments, fees and the timing of your invoicing can help.
• Equipment purchases and improvements: if you were planning to invest, doing it in 2025 lets you use 40% “bonus” depreciation plus the regular depreciation rules and the current-year expensing deduction (Section 179) where applicable. In plain terms: you recover your investment faster through taxes.
• Set up or update your retirement plan: for a Solo 401(k) or a company plan, setup or contribution elections usually require steps before December 31 to take advantage of 2025 deductions. Contributing reduces your taxes and saves for your retirement.
• Organized books and receipts: make sure mileage, travel expenses, home office and small expenses are documented. Clean records mean real money at filing time.

For real estate investors

• Look into cost segregation: on certain properties, separating components (roof, systems, finishes) can accelerate depreciation. In 2025, you can still combine it with 40% “bonus” depreciation on eligible assets.
• Decide on your property tax payments: coordinate them with your SALT strategy and whether you'll itemize in 2025 or 2026.

Key facts you should know

• About 90% of taxpayers take the standard deduction instead of itemizing, so planning when to itemize makes a difference in a few key years.
• The $10,000 SALT cap ends after 2025, which changes the strategy for when to pay state and local taxes.
• The 199A deduction lets you subtract up to 20% of profits from businesses that are not C corporations; it ends after 2025.
• “Bonus” depreciation is 40% in 2025 and will drop to 20% in 2026, which makes 2025 more attractive for qualifying equipment purchases.

How we help you at Imfinita Tax Team

• 2025 express assessment: in 30 minutes, we'll tell you whether it makes sense to accelerate income or expenses this year, and how.
• A plan for 2026: we model your situation with and without the 2017 rules so you can decide based on the numbers.
• Business owners: we optimize 199A, S-Corp payroll, equipment purchases and your retirement plan.
• Real estate: depreciation analysis, cost segregation and a SALT payment calendar.

Schedule your consultation at www.imfinitataxteam.com and avoid overpaying because of a lack of planning.

Sources and references

• IRS, Statistics of Income: Individual Income Tax Returns, Line Item Estimates (percentage using the standard deduction). https://www.irs.gov/statistics/soi-tax-stats-individual-income-tax-returns-line-item-estimates
• Joint Committee on Taxation (JCT), List of Expiring Federal Tax Provisions (expirations after 2025, including SALT and §199A). https://www.jct.gov
• Tax Policy Center, “What is the SALT deduction and why is it controversial?” ($10,000 SALT cap and its expiration). https://www.taxpolicycenter.org/briefing-book/what-salt-deduction-and-why-it-controversial
• IRS/Code §199A, Qualified Business Income Deduction (20% deduction for pass-throughs through 2025). https://www.irs.gov/newsroom/qualified-business-income-deduction
• Tax Foundation, “Bonus Depreciation Phaseout Schedule” (40% in 2025, 20% in 2026). https://taxfoundation.org/bonus-depreciation-phaseout/

Note: This is general information. Every case is different. Arrange a personalized review before making any decisions.