--- title: "Year-End 2026 Tax Planning: 100% Bonus Depreciation and R&D Expensing | Capstone CFO" description: "What growing companies should review before year-end 2026: permanent 100% bonus depreciation, Section 179, domestic R&D expensing and cash tax planning." image: https://capstonecfo.com/hubfs/capstone-2026/insights-covers/year-end-2026-tax-planning-bonus-depreciation-rd-expensing.png --- [Skip to content](https://capstonecfo.com/blog/year-end-2026-tax-planning-bonus-depreciation-rd-expensing#main-content) [![Capstone CFO](https://capstonecfo.com/hs-fs/hubfs/capstone-2026/capstone-logo-light.png?width=79&height=46&name=capstone-logo-light.png)](https://capstonecfo.com/) - What We Do ###### How We Engage - [Fractional CFO](https://capstonecfo.com/cfo-plans) - [CFO & Accounting](https://capstonecfo.com/cfo-and-accounting-plans) - [Special Projects & Transactions](https://capstonecfo.com/special-projects) ###### Problems We Solve - [Cash Flow Problems](https://capstonecfo.com/solutions/cash-flow-problems) - [Late or Inaccurate Financials](https://capstonecfo.com/solutions/late-or-inaccurate-financials) - [Forecasting & Planning](https://capstonecfo.com/solutions/financial-forecasting-and-planning) - [KPIs & Board Reporting](https://capstonecfo.com/solutions/kpis-and-board-reporting) - [Fundraising Readiness](https://capstonecfo.com/solutions/fundraising-readiness) - [Exit & M&A Readiness](https://capstonecfo.com/solutions/exit-and-m-and-a-readiness) - Who We Serve ###### Ownership [**PE & VC-Backed Companies**Board and investor reporting, 13-week cash flow and exit readiness](https://capstonecfo.com/#who-we-serve) [**Independent & Founder-Led Companies**Owner-level visibility, cash control and growth planning](https://capstonecfo.com/#who-we-serve) ###### Technology & Digital - [SaaS & Software](https://capstonecfo.com/saas-and-software-companies) - [E-Commerce & Digital Retail](https://capstonecfo.com/e-commerce-and-digital-retail) ###### Services - [Professional Services](https://capstonecfo.com/professional-services) - [Advertising & Marketing Agencies](https://capstonecfo.com/advertising-agencies) - [Healthcare Practices](https://capstonecfo.com/healthcare-services) - [Home & Field Services](https://capstonecfo.com/home-services-and-field-services) ###### Operations & Real Assets - [Manufacturing & Distribution](https://capstonecfo.com/manufacturing-and-distribution) - [Franchise Operations](https://capstonecfo.com/franchise-operations) - [Real Estate](https://capstonecfo.com/real-estate) - [Insights](https://capstonecfo.com/blog) - [About](https://capstonecfo.com/#team) [Book a Call](https://capstonecfo.com/meeting) Insights # Year-End 2026 Tax Planning: 100% Bonus Depreciation and R&D Expensing Capstone CFO **Short answer:** before year-end, review the timing of equipment purchases under the now-permanent 100% bonus depreciation and Section 179, confirm how you are treating domestic research and development (R&D) costs under the restored expensing rules, update your cash tax forecast, and plan estimated payments. Work with your CPA early; year-end decisions are much harder in late December. ## What changed The 2025 tax law known as the One Big Beautiful Bill Act made several changes that matter for growing companies: - **100% bonus depreciation is permanent** for qualifying property acquired after January 19, 2025, replacing the previous phase-down. Qualifying new and used tangible property with a recovery period of 20 years or less can generally be deducted in the first year. - **Section 179** expensing limits were raised; for 2026 the deduction limit is about $2.56 million, phasing out above about $4.09 million of qualifying purchases. - **Domestic R&D can be expensed again** under new Section 174A, rather than amortized over five years. Foreign research must still be capitalized and amortized over 15 years. ## Your year-end checklist 1. **Equipment and capital spending:** confirm what is planned before December 31 and whether it is placed in service this year. 2. **Choose the right deduction:** bonus depreciation and Section 179 work differently; your CPA can model which is better, including state tax effects. 3. **R&D costs:** identify domestic versus foreign research costs and confirm your treatment and any elections. 4. **Cash tax forecast:** update projected taxable income and plan fourth-quarter estimated payments. 5. **Owner and entity considerations:** for pass-through entities, coordinate with owners' personal tax planning. 6. **Documentation:** keep invoices, placed-in-service dates and R&D support organized. ## Do not let tax drive the business decision A deduction reduces taxes, but the purchase still uses cash. Buy equipment because it earns a return, then use the tax rules to improve the economics, not the other way around. ## Frequently asked questions ### Is 100% bonus depreciation really permanent? Under current law, yes, for qualifying property acquired after January 19, 2025. Future legislation could change it. ### Can we still expense R&D from 2022 to 2024? Smaller businesses had a retroactive option with a July 6, 2026 deadline, and other transition rules apply to larger businesses. Ask your CPA what remains available for your company. ### When should we start year-end planning? Now. October and November give enough time to model options and act before December 31. *This article is general information, not tax or legal advice. Tax rules change and depend on your facts; review your situation with your CPA or tax advisor before acting.* *Want help forecasting cash taxes and planning year-end purchases? [Talk with our CFO team](https://capstonecfo.com/meeting).* ### Ready when you are. Talk with our CFO team about your goals. [Let's Chat](https://capstonecfo.com/meeting) [![Capstone CFO](https://capstonecfo.com/hs-fs/hubfs/capstone-2026/capstone-logo-light.png?width=93&height=54&name=capstone-logo-light.png)](https://capstonecfo.com/) Fractional CFO, accounting and transaction services for companies ready to scale. Based in Scottsdale, Arizona, serving the Phoenix area and clients nationwide. ![Platinum Tier Badge](https://capstonecfo.com/hs-fs/hubfs/Platinum%20Tier%20Badge.png?width=57&height=64&name=Platinum%20Tier%20Badge.png) #### What We Do - [Fractional CFO](https://capstonecfo.com/cfo-plans) - [CFO & Accounting](https://capstonecfo.com/cfo-and-accounting-plans) - [Special Projects & Transactions](https://capstonecfo.com/special-projects) #### Problems We Solve - [Cash Flow Problems](https://capstonecfo.com/solutions/cash-flow-problems) - [Late or Inaccurate Financials](https://capstonecfo.com/solutions/late-or-inaccurate-financials) - [Forecasting & Planning](https://capstonecfo.com/solutions/financial-forecasting-and-planning) - [KPIs & Board Reporting](https://capstonecfo.com/solutions/kpis-and-board-reporting) - [Fundraising Readiness](https://capstonecfo.com/solutions/fundraising-readiness) - [Exit & M&A Readiness](https://capstonecfo.com/solutions/exit-and-m-and-a-readiness) #### Who We Serve - [SaaS & Software](https://capstonecfo.com/saas-and-software-companies) - [E-Commerce & Digital Retail](https://capstonecfo.com/e-commerce-and-digital-retail) - [Professional Services](https://capstonecfo.com/professional-services) - [Advertising & Marketing Agencies](https://capstonecfo.com/advertising-agencies) - [Healthcare Practices](https://capstonecfo.com/healthcare-services) - [Home & Field Services](https://capstonecfo.com/home-services-and-field-services) - [Manufacturing & Distribution](https://capstonecfo.com/manufacturing-and-distribution) - [Franchise Operations](https://capstonecfo.com/franchise-operations) - [Real Estate](https://capstonecfo.com/real-estate) #### Company - [About](https://capstonecfo.com/#team) - [Insights](https://capstonecfo.com/blog) - [Book a Call](https://capstonecfo.com/meeting) - [Contact Us](https://capstonecfo.com/#contact) Copyright © 2026 Capstone CFO, LLC [Legal Disclaimer](https://capstonecfo.com/disclaimer) ```json { "@context" : "https://schema.org", "@id" : "https://capstonecfo.com/#organization", "@type" : "ProfessionalService", "address" : { "@type" : "PostalAddress", "addressCountry" : "US", "addressLocality" : "Scottsdale", "addressRegion" : "AZ" }, "areaServed" : [ { "@type" : "City", "name" : "Scottsdale, Arizona" }, { "@type" : "City", "name" : "Phoenix, Arizona" }, { "@type" : "State", "name" : "Arizona" }, { "@type" : "Country", "name" : "United States" } ], "description" : "Capstone CFO is a boutique fractional CFO and accounting firm based in Scottsdale, Arizona, serving the Phoenix area and clients nationwide. 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