Entrepreneur
The tax law is always changing. Your tax strategy needs to keep up.
In 2025, the One Big Beautiful Bill ushered in a slew of changes to federal tax policy. Many of these are favorable to entrepreneurs, but few will translate into automatic benefits. You need to know where to look and how to take action.
Here are five moves I’m talking about with entrepreneurs and investors who want to get serious about their tax and wealth-building strategies this year.
1. Make sure you are working with the right tax advisor
Your average W-2 employee can use off-the-shelf tax preparation software or the services of any competent CPA without much risk. But entrepreneurs are different. You have access to far more sophisticated options when it comes to building your business and your wealth, and the right advisor will guide you to the best results.
Ask yourself the following questions. If your answers aren’t a resounding yes, hire a new tax advisor as soon as possible this year.
- Do I have a clear tax strategy mapped out by my tax advisor?
- Does my tax advisor reach out to me throughout the year to proactively work on that strategy?
- Does my tax advisor work in sync with my banker, lawyer and other professional advisors?
- Does my tax advisor come to me with ideas about how I can make more money while paying less taxes?
- Does my tax advisor seem comfortable handling an audit if I receive one?
2. Consider real estate investments
I am the child of entrepreneurs and grew up watching my parents invest in real estate alongside their primary business. When I became a CPA and helped my mother with their tax returns, I saw how they benefited not just from rental income but also from tax benefits.
Real estate investments consistently come with the most advantageous tax incentives in almost every country, and that’s certainly true in the U.S.
Here are a few changes to note:
- You can now immediately expense qualified production property, essentially, real estate used to make certain products. But watch your calendar. Construction needs to start by Jan. 1, 2029, and be completed by Jan. 1, 2031.
- There are changes to the Opportunity Zones program established in 2017 to encourage investment in economically distressed communities. One of the most notable is that the basis step-up is now higher (30% vs. 10%) for rural Opportunity Zones.
- If you’ve been eyeing tax credits for energy-efficient construction, you’ll need to act fast. The Section 179D deduction requires construction to begin by June 30, 2026.
- Similarly, the Section 48E investment tax credit for wind and solar projects requires any projects that start construction after July 4, 2026, to be in service by the end of 2027.
The right tax advisor will guide you through all the details of these changes, as well as how to use a cost-segregation analysis to depreciate your property appropriately and maximize the 100% bonus depreciation (see number three), use like-kind exchanges when you buy and sell, and identify other tax credits.
3. Maximize your bonus depreciation
One of the biggest benefits for entrepreneurs under the new tax law is the return of 100% bonus depreciation, which allows businesses to deduct the full purchase price of a qualifying asset in the year it is acquired, rather than spreading that deduction over the asset’s life. This is a huge incentive for entrepreneurs to buy real estate, machinery and other capital improvements.
Bonus depreciation was on pace to be 40% in 2025 and be eliminated by 2027, so many entrepreneurs had adjusted their strategy accordingly. Work with your tax advisor to see how this change may affect your investment decisions in your business. Purchases you may have been putting off may no longer be as costly as you think.
4. Evaluate your health care expenses
Rising health care costs are likely to remain a top issue in Washington at least through the next election cycle. As an entrepreneur, you’ll want to keep an eye on any legislative changes that may impact you or your employees.
So far, however, the changes are limited to some expansions to health savings accounts, the tax-advantaged savings accounts linked with high-deductible health plans. If these apply to you, be sure to include them in your plan.
As you weigh your options, remember that health insurance, like most benefits, is a deductible business expense. What’s more, eligible small businesses can receive a tax credit of up to 50% of the premiums they pay to offer health insurance to their employees. In essence, the government is using the tax code to encourage entrepreneurs to provide employees with health insurance. This credit is only available for two consecutive years, so if you’re looking to add a new benefit to attract or retain employees, this could be a great option.
5. Revisit your estate plan
Estate planning isn’t just for entrepreneurs nearing retirement. It should be part of your ongoing wealth and tax strategies.
The new tax law permanently increased the estate tax exemption to $15 million per person or $30 million per married couple, with annual inflation adjustments. If you didn’t adjust your estate plan in 2025 to align with this higher exemption, now is the time. Other circumstances in your life and business may have changed over the past year as well, so prioritize reviewing your will, trusts, insurance, beneficiary designations and powers of attorney.
If you’d like to see your heirs enjoy some of your wealth before you die, consider using this year’s gift tax exclusion. You can give up to $19,000 (or $38,000 as a married couple) to each individual without counting it against your eventual estate tax.
The bottom line
Making more money while paying less taxes is possible, but it requires planning. By starting 2026 with these five moves, you’ll set yourself and your business up for long-term success.
Remember: You are in the driver’s seat. Seek out the tools, information and advisors you need to reach your destination.
The tax law is always changing. Your tax strategy needs to keep up.
In 2025, the One Big Beautiful Bill ushered in a slew of changes to federal tax policy. Many of these are favorable to entrepreneurs, but few will translate into automatic benefits. You need to know where to look and how to take action.
Here are five moves I’m talking about with entrepreneurs and investors who want to get serious about their tax and wealth-building strategies this year.
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