2026 Year-End Tax Planning & Bookkeeping Checklist: 8 Important Tax Changes You Should Know Before December 31

Updated November 2026 | OMA Services, LLC | North Carolina Bookkeeping & QuickBooks Support

Are you financially prepared for the end of 2026?

With December 31 approaching, business owners, self-employed professionals, and families have an important opportunity to review their financial records, evaluate available

tax deductions, and prepare for the 2026 tax filing season.

The One Big Beautiful Bill Act (OBBBA), enacted in July 2025, introduced significant changes affecting business depreciation, qualified business income, charitable contributions, personal deductions, and long-term investment planning.

At OMA Services, LLC, we believe successful year-end financial preparation starts with accurate bookkeeping, organized records, and a clear understanding of your business's financial position.

Whether you operate a small business in the Outer Banks, manage an LLC in North Carolina, or need professional QuickBooks Online assistance, understanding these changes now can help you make informed decisions before the tax year closes.

Here are eight important federal tax changes for 2026, along with practical bookkeeping steps to help you prepare.

1. 100% Bonus Depreciation Is Back — What Business Owners Need to Know

One of the most significant changes for the 2026 tax year is the restoration of 100% bonus depreciation for qualifying business property acquired and placed in service after January 19, 2025.

Eligible businesses may be able to deduct the entire qualifying cost of certain equipment and assets in the year they are placed into service, rather than depreciating those costs over several years.

Common examples of potentially eligible assets include:

• Business computers, printers, and technology equipment

• Qualifying machinery and tools

• Certain business vehicles

• Office furniture and equipment

• Qualifying land improvements

• Certain building improvements and components

For 2026, the federal Section 179 deduction limit is $2,560,000, with a phaseout beginning when qualifying property placed in service exceeds $4,090,000.

However, Section 179 and bonus depreciation operate under different rules. Business-use percentages, vehicle limitations, taxable income restrictions, and state tax treatment can affect the final deduction.

Important for North Carolina businesses

North Carolina does not automatically follow every federal depreciation provision. State adjustments may be necessary when preparing North Carolina income tax returns.

OMA Services Bookkeeping Tip: Before December 31, review your fixed asset register, equipment purchases, vehicle transactions, financing agreements, and supporting receipts.

An asset generally must be placed in service—not merely ordered or paid for—to qualify for depreciation in that tax year.

Properly categorizing these purchases in QuickBooks Online helps your tax preparer identify potential deductions and avoid incorrect expense classifications.

2. The 20% Qualified Business Income Deduction Is Now Permanent

The Section 199A Qualified Business Income (QBI) deduction is an important tax benefit for many small business owners.

Under the updated federal law, eligible taxpayers may continue claiming a deduction of up to 20% of qualified business income, subject to applicable limitations.

Businesses that may qualify include:

• Sole proprietorships

• Single-member LLCs

• Partnerships

• Certain S corporations

• Other eligible pass-through businesses

  
  

For example, a qualifying business with $100,000 in qualified business income could potentially receive a deduction of up to $20,000, depending on the owner's taxable income and other restrictions.

This does not mean every business automatically qualifies for the full deduction. Certain service businesses, income thresholds, employee wages, and qualified property calculations may affect eligibility.

Why accurate bookkeeping matters

The QBI deduction depends on properly calculated business income.

Unreconciled accounts, incorrectly recorded expenses, personal transactions, and inaccurate profit-and-loss statements can create problems when determining eligible income.

OMA Services Bookkeeping Tip: Review your 2026 Profit & Loss Statement, reconcile your accounts, and identify any transactions that may require reclassification before submitting your records for tax preparation.

3. The State and Local Tax Deduction Has Increased for 2026

The federal State and Local Tax (SALT) deduction allows eligible taxpayers who itemize to deduct certain state and local taxes.

For the 2026 tax year, the general SALT deduction cap increases to $40,400, compared with the former $10,000 limit.

This change may benefit taxpayers with substantial state income taxes, property taxes, or other qualifying state and local tax payments.

However, the deduction is subject to income-based limitations and generally applies only when itemizing deductions.

What about North Carolina LLCs and S corporations?

Some eligible pass-through entities may benefit from North Carolina's elective pass-through entity tax (PTET) provisions.

This can be particularly relevant for qualifying partnerships and S corporations, depending on the ownership structure and applicable tax rules.

OMA Services Bookkeeping Tip: Ensure that state tax payments, business property taxes, and owner distributions are recorded in the appropriate accounts.

Incorrectly categorizing personal income taxes as ordinary business expenses can distort financial statements and create complications during tax preparation.

4. Opportunity Zone 2.0 — Important Changes Beginning in 2027

Qualified Opportunity Zones are designated areas intended to encourage long-term investment in certain communities.

The One Big Beautiful Bill Act established a revised Opportunity Zone program beginning January 1, 2027.

Under the new framework, qualifying investments may provide benefits such as:

• Temporary deferral of eligible capital gains

• A potential 10% basis increase after meeting the required holding period

• A potentially larger 30% basis increase for qualifying rural investments

• Possible exclusion of eligible investment appreciation after a qualifying long-term holding period

Important distinction: The original Opportunity Zone program generally requires previously deferred gains to be recognized no later than December 31, 2026. The new five-year deferral framework applies to qualifying investments under the revised program beginning in 2027.

Investors should not assume that moving a late-2026 capital gain into a fund during 2027 automatically creates a new five-year deferral.

Why this matters for year-end financial planning

Business owners considering property sales, investment dispositions, or major capital transactions should review the timing and tax consequences with a qualified tax advisor.

OMA Services Bookkeeping Tip: Maintain organized records of asset acquisition costs, capital improvements, sale proceeds, transaction expenses, and investment documentation.

Accurate financial records are essential when calculating capital gains and establishing an asset's adjusted tax basis.

5. New Charitable Contribution Deductions for 2026

Beginning with the 2026 tax year, eligible taxpayers who take the standard deduction may also deduct certain qualifying cash charitable contributions.

The maximum deduction is:

• $1,000 for eligible single filers

• $2,000 for married couples filing jointly

This benefit applies to qualifying cash contributions and is separate from the standard deduction.

For taxpayers who itemize, new limitations also apply, including a 0.5% adjusted gross income floor for certain charitable contributions.

How should charitable donations be recorded?

Business owners should distinguish between personal charitable contributions and legitimate business expenses.

For example, a charitable donation made personally by a sole proprietor generally should not be recorded as an ordinary Schedule C business expense.

OMA Services Bookkeeping Tip: Keep donation receipts, acknowledgment letters, payment confirmations, and records identifying the receiving organization.

Proper documentation helps distinguish charitable contributions from sponsorships, advertising expenses, and other business expenditures.

6. New Tax Deductions for Tips, Overtime, and Vehicle Loan Interest

The 2026 tax year includes several additional deductions that qualifying individuals may claim using IRS Schedule 1-A.

These provisions may be particularly relevant for employees, hospitality workers, service professionals, and individuals purchasing qualifying vehicles.

Qualified tip income — Up to $25,000

Eligible workers in occupations that customarily and regularly receive tips may qualify for a deduction of up to $25,000 in qualifying reported tip income.

The deduction is subject to eligibility requirements and income limitations.

Qualified overtime compensation — Up to $12,500

Eligible workers may deduct up to $12,500 of qualifying overtime compensation, or up to $25,000 for married couples filing jointly.

Importantly, the deduction generally applies to the qualifying overtime premium—not the employee's entire overtime paycheck.

Qualified vehicle loan interest — Up to $10,000

Eligible taxpayers may deduct up to $10,000 in interest paid on qualifying loans used to purchase certain new, U.S.-assembled vehicles for personal use.

Vehicle eligibility, loan origination dates, income limitations, and other restrictions apply.

Important: These deductions do not automatically eliminate payroll taxes or make all tips and overtime completely tax-free.

Why employers should pay attention

Employers should ensure that payroll records accurately distinguish regular wages, qualified overtime compensation, tips, and other compensation categories.

OMA Services Bookkeeping Tip: Review payroll reports, employee classifications, year-to-date wages, and year-end reporting requirements before issuing Forms W-2 and applicable Forms 1099.

Accurate payroll bookkeeping can make a significant difference when employees and their tax preparers determine eligibility for these deductions.

7. Additional Tax Deduction for Seniors Age 65 and Older

For the 2026 tax year, qualifying taxpayers age 65 or older may claim an additional federal deduction of up to $6,000 per eligible individual.

Married couples filing jointly may qualify for up to $12,000 when both spouses meet the age and other eligibility requirements.

The deduction is subject to income-based phaseouts and is separate from the existing additional standard deduction available to qualifying older taxpayers.

It may be available whether the taxpayer itemizes deductions or claims the standard deduction.

Does this mean Social Security benefits are no longer taxable?

No. The new provision does not eliminate the existing federal rules governing taxation of Social Security benefits.

Instead, it provides a separate deduction that may reduce taxable income for eligible seniors.

OMA Services Financial Preparation Tip: Individuals approaching retirement should review their income sources, business earnings, retirement distributions, and relevant financial records before year-end.

A complete financial picture can help a qualified tax advisor evaluate available deductions and potential tax consequences.

8. New Depreciation Opportunities for U.S. Manufacturing Facilities

The One Big Beautiful Bill Act also introduced favorable depreciation treatment for certain qualifying U.S. manufacturing and production facilities.

Under the new rules, eligible nonresidential real property used in qualifying production activities may receive immediate expensing treatment rather than being depreciated over the traditional 39-year recovery period.

The rules contain specific requirements regarding construction, acquisition, placed-in-service dates, and qualifying production activities.

Ordinary office space and other nonqualifying portions of a facility generally do not receive this special treatment.

What should manufacturing businesses do before year-end?

Businesses considering facility improvements, expansions, or capital investments should maintain detailed records of:

• Construction and improvement costs

• Contractor invoices and payments

• Equipment acquisitions

• Project completion dates

• Building and asset classifications

• Dates qualifying property is placed in service

OMA Services Bookkeeping Tip: Maintain separate fixed asset and construction-in-progress accounts in QuickBooks Online when appropriate.

Separating building improvements, machinery, land improvements, and operating expenses can simplify year-end financial reporting and support depreciation analysis.

Your 2026 Year-End Bookkeeping Checklist: What Should You Complete Before December 31?

Understanding tax law changes is only part of the process. Accurate, organized bookkeeping is what allows business owners and their tax professionals to evaluate those changes effectively.

At OMA Services, LLC, we recommend reviewing the following areas before closing your 2026 books.

1. Reconcile Your Bank and Credit Card Accounts

Confirm that all bank accounts, credit cards, business loans, and payment processing accounts are properly reconciled.

2. Review Your Profit & Loss Statement

Identify duplicate expenses, missing income, incorrect classifications, and unusual account balances.

3. Clean Up Accounts Receivable and Customer Retainers

Review unpaid invoices, unapplied payments, customer deposits, retainers, and outstanding credit balances.

Customer retainers should be recorded appropriately based on the transaction and applicable accounting method—not automatically treated as earned revenue.

4. Review Accounts Payable and Vendor Payments

Identify outstanding bills, duplicate vendor entries, unapplied credits, and payments requiring clarification.

5. Review Fixed Assets and Depreciation Records

Ensure equipment purchases, vehicle acquisitions, financing transactions, and major improvements are properly documented.

6. Prepare for 1099 Reporting

Review vendor records, obtain missing Forms W-9, and identify payments potentially reportable on Forms 1099-NEC or 1099-MISC.

7. Review Payroll and Owner Transactions

Verify payroll liabilities, payroll expense accounts, owner draws, shareholder distributions, and other equity transactions.

8. Review Sales Tax and State Compliance

Confirm that applicable North Carolina sales and use tax transactions have been recorded and reconciled.

9. Review Your QuickBooks Chart of Accounts

Eliminate unnecessary duplicate accounts, investigate negative balances, and correct classifications that distort your financial reports.

10. Prepare Financial Statements for Your Tax Professional

Generate a current Balance Sheet, Profit & Loss Statement, General Ledger, and other supporting schedules needed for tax preparation.

The goal is simple: enter 2027 with accurate 2026 financial records, fewer unresolved bookkeeping issues, and a clearer understanding of your business's financial performance.

How OMA Services, LLC Can Help You Prepare for Year-End 2026

Preparing your business for tax season should not begin when your tax preparer requests your financial statements.

At OMA Services, LLC, we provide professional bookkeeping and QuickBooks Online support to help business owners maintain accurate, organized financial records throughout the year.

Our services include:

• Year-End Bookkeeping Cleanup: Correcting accounting discrepancies, reviewing transactions, and preparing accurate financial records.

• QuickBooks Online Setup & Support: Organizing your Chart of Accounts, improving bookkeeping workflows, and troubleshooting accounting issues.

• Bank & Credit Card Reconciliations: Reviewing transactions and resolving reconciliation discrepancies.

• Accounts Receivable & Payable Management: Organizing customer payments, retainers, vendor bills, and outstanding balances.

• 1099 Preparation Support: Reviewing vendor payment records and organizing information needed for year-end reporting.

• Payroll Bookkeeping Support: Reviewing payroll-related accounts, liabilities, and financial reporting.

• Financial Statement Preparation: Providing organized financial reports to support business decisions and tax preparation.

• Ongoing Monthly Bookkeeping: Helping businesses maintain reliable accounting records beyond tax season.

Whether your books are current or require several months of cleanup, OMA Services can help you identify outstanding bookkeeping issues and develop an organized path forward.

Frequently Asked Questions About 2026 Year-End Taxes and Bookkeeping

What should a small business do before December 31, 2026?

Small businesses should reconcile their financial accounts, review income and expenses, verify vendor information, organize fixed asset records, review payroll, and prepare current financial statements. Business owners should also consult their tax advisors about any tax-sensitive transactions that must occur before year-end.

Can I deduct business equipment purchased in 2026?

Potentially. Qualifying equipment may be eligible for Section 179 expensing or 100% bonus depreciation. Eligibility depends on the asset, acquisition and placed-in-service dates, business use, and applicable tax rules.

Does North Carolina follow federal bonus depreciation rules?

Not completely. North Carolina requires certain state tax adjustments to federal bonus depreciation and Section 179 deductions. Businesses should maintain detailed depreciation records for federal and state reporting.

Is the 20% QBI deduction available to LLC owners in 2026?

Many eligible LLC owners may qualify, depending on how the business is taxed, the owner's taxable income, the type of business, and other limitations. The deduction is not automatic for every LLC.

Can QuickBooks Online help with year-end tax preparation?

Yes. Properly maintained QuickBooks Online records can provide the Profit & Loss Statement, Balance Sheet, transaction history, and supporting accounting reports your tax preparer may need.

However, QuickBooks does not independently determine every federal or state tax deduction.

Where can I find professional bookkeeping and QuickBooks support in North Carolina?

OMA Services, LLC provides bookkeeping cleanup, QuickBooks Online support, account reconciliations, and year-end financial preparation for businesses throughout North Carolina, including the Outer Banks, Southern Shores, Kitty Hawk, Kill Devil Hills, Nags Head, Manteo, Point Harbor, Dare County, and Currituck County.

Get Your Business Ready for 2027 With OMA Services, LLC

December 31, 2026, is approaching. Are your books ready?

Year-end financial preparation is more than collecting receipts and reviewing expenses. It is an opportunity to understand your business's performance, correct accounting discrepancies, and establish a reliable financial foundation for the coming year.

Whether you need a complete QuickBooks cleanup, assistance with reconciliations, year-end financial reporting, or dependable ongoing bookkeeping support, OMA Services, LLC is here to help.

Start 2027 with organized books, accurate financial records, and greater confidence in your business finances.

OMA Services, LLC — Professional Bookkeeping & QuickBooks Online Support

Serving the Outer Banks, Dare County, Currituck County, and businesses throughout North Carolina.

Website: https://www.omaservices.com

Contact OMA Services today to discuss your 2026 year-end bookkeeping needs.

Disclaimer: This article is provided for general educational and informational purposes and is based on federal tax provisions applicable to the 2026 tax year as understood in November 2026. It does not constitute individualized tax, legal, or investment advice. Tax eligibility depends on individual circumstances, and North Carolina tax treatment may differ from federal law. Consult a qualified tax professional regarding deductions, elections, tax projections, and filing requirements. OMA Services, LLC provides bookkeeping and financial record support and does not represent that it provides legal advice or specialized tax services.