Are these three items getting a second look before year-end?
For business owners and self-employed professionals. Eligibility depends on your situation.
Qualifying equipment placed in service this year may be deducted faster under Section 179 or bonus depreciation. Some leasehold improvements have their own rules and may not qualify. Limits apply, and the asset must be in service by year-end.
List planned purchases with the date each will be in service. Keep invoices.
The cost of food, drinks and packaging you sell is cost of goods sold. Track purchases and year-end inventory, and separate owner or staff meals and spoilage records.
Do a year-end inventory count and tie it to purchase invoices.
This is a credit, not a deduction. Food and beverage employers may claim a credit for the employer share of Social Security and Medicare taxes paid on certain tips. Tips used to meet the federal minimum wage do not count.
Ask your payroll provider for the employer FICA paid on reported tips for the year.
Business expenses must be ordinary and necessary. Keep receipts and the business purpose; separate personal use and reimbursements. Dollar limits shown are for 2026 and can change; eligibility and entity type matter. General education, not individual tax advice.
Book a free 15-minute year-end tax check with Louisa, by phone.
Book your free 15-minute tax check →Or call or text 281-656-9666.