A practical tax planning checklist for owners who want fewer surprises and cleaner books

If you run a growing business near Surfside Beach, taxes aren’t a once-a-year project—they’re an operating system. The right “small business tax topics” to focus on in 2026 aren’t the obscure loopholes you see online. They’re the decisions that affect cash flow, payroll accuracy, estimated taxes, and how confidently you can hire, invest, and take owner distributions.

Below is a field-tested set of tax topics that tend to move the needle for service-based businesses (like agencies, consultants, contractors, and professional practices). Use it as a planning guide—and if you want a proactive partner to implement it, JTC CPAs’ tax planning services are built for year-round strategy, not last-minute scrambling.

1) 2026 tax brackets & standard deduction: why it still matters for business owners

Even if your business files on a pass-through return (Schedule C, partnership, or S corporation), your planning ties back to your personal tax bracket. For 2026, the IRS increased the standard deduction to $16,100 (single) and $32,200 (married filing jointly). (irs.gov)

What to do with that info:

Owner planning moves that connect to brackets
Time income & expenses: If you’re near a bracket cutoff, accelerating expenses (or delaying invoicing) can change your effective rate.
Evaluate entity strategy: S corp salary vs. distributions, retirement contributions, and QBI all interact with taxable income.
Quarterly estimates: Brackets impact how aggressive your estimates need to be to avoid penalties.

If your books aren’t consistently accurate by month-end, your bracket strategy becomes guesswork. If that sounds familiar, start with stronger bookkeeping fundamentals: Bookkeeping Services at JTC CPAs.

2) Mileage, vehicles, and “small stuff” that adds up fast

For many local owners, vehicle use is one of the easiest places to leak deductions—either by under-tracking miles or by mixing personal/business use in a way that’s hard to substantiate.

The IRS standard mileage rate for business driving is 72.5 cents per mile for 2026 (starting January 1, 2026). (irs.gov)

Keep it clean (and audit-resistant)
Use an app: Track trips contemporaneously (who/where/why). A spreadsheet recreated in April is weaker support.
Set a reimbursement policy: If you have employees driving for client work, document what qualifies and how you reimburse.
Choose a method intentionally: Standard mileage is simple; actual expenses can win for certain vehicles—especially if business use is high.

If payroll reimbursements or owner expense coding is messy, it can snowball. Consider streamlining with payroll processing support.

3) Travel & per diem: a smarter way to document business trips

If you travel for conferences, client engagements, or multi-location projects, you need a consistent documentation approach. The IRS allows per diem substantiation methods for travel away from home (with rules). (eitc.irs.gov)

For federal travelers (and businesses that use these as benchmarks), GSA’s FY 2026 CONUS per diem rates were maintained at FY 2025 levels (standard lodging $110, standard M&IE $68). (gsa.gov)

Approach Best for What you still must track
Actual expenses Complex trips, variable costs, higher lodging Business purpose, dates, location, receipts (as required)
Per diem (GSA-based) Repeat travel, easier reimbursement policies Business purpose, dates, location, who traveled
High-low per diem method You want simplified per diem without tracking each city rate Business purpose, dates, and whether locality qualifies as “high-cost” for that period
Tip for owners: if you reimburse employees, align your travel policy with your bookkeeping categories so your financial reporting stays usable (and so reimbursements don’t accidentally get treated like taxable wages).

4) Section 179 & bonus depreciation: plan purchases, don’t “panic buy” in December

Equipment and technology purchases can be legitimate tax planning, but only when they match operational needs and cash flow realities. If you’re upgrading computers, vehicles, furniture, or specialty equipment, you’ll want to coordinate timing and documentation.

For 2026, Section 179 limits and thresholds can be significant planning levers (especially for owners investing in growth). Many business planning discussions also weigh bonus depreciation alongside Section 179 for the cleanest result on the return. (usbank.com)

A good rule: tie every major purchase to a simple one-page “business case” (what you’re buying, why, when placed in service, and how it supports revenue). That single habit reduces tax-time friction and strengthens substantiation if questions arise later.

If you want your financials to support these decisions in real time (not months later), ask about compiled reporting and clean monthly closes: Financial Compilations.

5) Estimated taxes, payroll, and “owner pay”: where most avoidable penalties start

Many owners in service businesses are profitable but still get blindsided by taxes because cash management and tax management aren’t synced.

Focus your 2026 plan on these three workflows:

The “3 checks” that prevent most surprises
Monthly: Reconcile accounts, review profit & loss, and confirm payroll filings match your payroll reports.
Quarterly: Forecast taxable income and adjust estimates before deadlines.
Annually: Confirm 1099 processes, retirement plan contributions, and entity elections/strategy.

If you’re building a team (or simply tired of weekend payroll stress), outsourcing can reduce errors and free up your focus: Benefits of outsourcing payroll.

6) A local angle for Surfside Beach business owners: multi-state considerations & beach-town seasonality

Coastal markets often come with seasonality (peaks in spring/summer, slower shoulder months). That creates a planning opportunity:

Seasonality strategies that also support tax planning
Adjust estimated taxes with reality: If Q1 is slow and Q3 is strong, don’t use last year’s quarterly amounts on autopilot.
Lock down contractor documentation early: Beach-town staffing often relies on contractors—get W-9s before the first payment, not after the last.
Watch multi-state work: If you deliver services across state lines (or have remote employees), your payroll tax and state filing footprint can expand quietly.

JTC CPAs is headquartered in Boise, but supports business owners across multiple locations and growth stages. If you want a team that can help you build a repeatable process—not just file returns—start here: JTC CPAs or reach out through their locations/contact options.

Did you know? Quick 2026 facts owners can use immediately

Business mileage: 72.5 cents per mile for 2026. (irs.gov)
Standard deduction: $16,100 (single) and $32,200 (married filing jointly) for 2026. (irs.gov)
Per diem budgeting: FY 2026 CONUS standard lodging is $110 and standard M&IE is $68 (unchanged from FY 2025). (gsa.gov)
Travel substantiation: The IRS recognizes per diem methods (with specific rules) as a substantiation approach for business travel. (eitc.irs.gov)

Ready for a calmer tax season?

If you want proactive planning (not reactive filing), JTC CPAs can help you tighten bookkeeping, run cleaner payroll, and build a year-round tax strategy that fits how your business actually operates.

FAQ: Small business tax topics (2026)

What are the most important “small business tax topics” to focus on each month?
Monthly reconciliation, accurate categorization (especially meals, travel, and contractors), and a quick profitability check that ties to your estimated tax plan. If payroll is involved, confirm filings and liabilities match payroll reports.
What’s the 2026 IRS mileage rate for business driving?
For 2026, the IRS standard mileage rate for business use is 72.5 cents per mile (effective January 1, 2026). (irs.gov)
Can I use per diem rates for business travel instead of tracking every meal receipt?
Often, yes—per diem substantiation is an IRS-recognized approach for qualifying travel away from home, but you still need solid records (business purpose, dates, location, and who traveled) and must follow the applicable rules. (eitc.irs.gov)
What changed with the 2026 standard deduction?
The IRS increased the 2026 standard deduction to $16,100 for single filers and $32,200 for married filing jointly. This impacts whether itemizing makes sense and can affect planning for charitable giving and other deductible expenses. (irs.gov)
How do I know if my business should move to an S corporation?
It depends on profitability, payroll requirements, reasonable compensation, admin complexity, and your long-term goals. The best next step is a projection using your real financials, not rules of thumb. JTC CPAs can help with that through tax planning.

Glossary

Per diem
A daily allowance method used to substantiate certain travel expenses (typically meals and incidentals, and sometimes lodging) when traveling away from home for business, subject to IRS rules.
Standard mileage rate
An IRS-published cents-per-mile rate that can be used to calculate deductible vehicle costs for business driving instead of tracking actual vehicle expenses, if you qualify and follow recordkeeping rules.
Section 179
A tax provision that can allow businesses to expense (deduct) qualifying equipment and property in the year it’s placed in service, subject to limits and eligibility rules.
Estimated taxes
Quarterly payments made to cover income tax (and often self-employment tax) when taxes aren’t withheld through payroll. Underpaying can lead to penalties and cash-flow surprises.

Author: JTC CPAs

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