The Election is Over. Here Is What It Actually Means for Your Business Taxes
If you have had the news on this week, you have heard plenty of predictions about what happens next. Some of it is exciting to some people. Some of it is unsettling to others. And if you own a business, there is a quieter question underneath all of it: Should I be doing something different with my taxes?
We have had that question from several clients already, so we want to give you a calm, plain answer. We are not here to tell you how to feel about the results. We are here to tell you what changes on your tax return, what does not, and what is worth keeping an eye on.
What Happened, in Plain Terms
Based on projections the day after the election, Democrats are set to take control of both the House and the Senate when the new Congress is seated in January 2027. A few races were still being counted. President Trump remains in office through January 2029, and he keeps the power to veto legislation.
In practical terms, that means a divided government for the next two years. A new tax law generally needs to pass both chambers of Congress and be signed by the President. When those are controlled by different parties, big tax changes become much harder to pass in either direction.
Why the Law on the Books Matters More Than the Headlines
The tax rules you are working under right now come mostly from the One Big Beautiful Bill Act, signed in July 2025. That law made many business tax provisions permanent rather than temporary. "Permanent" in tax law simply means there is no built-in expiration date. Congress can always change it, but it takes a new law to do so.
So for your 2026 return, nothing about the election changes the rules. And for 2027, the most likely outcome is that the current rules stay in place, because rewriting them would take agreement that is hard to reach with a divided government.
What You Can Plan On
These are provisions that are currently permanent law. They are reasonable to build your 2026 and 2027 planning around:
Individual tax brackets. The current rate structure, which is what most owners of LLCs, S corporations, and sole proprietorships pay on their business profit, no longer has a scheduled expiration.
The 20% qualified business income deduction. The deduction that lets many pass-through owners deduct up to 20% of their business income is now permanent.
100% bonus depreciation. Qualifying equipment acquired after January 19, 2025 can be written off in full the year it is put into service.
A larger Section 179 limit. For 2026, businesses can expense up to $2,560,000 of qualifying purchases, with the limit adjusted for inflation each year.
Research and development expensing. Domestic research costs can once again be deducted right away instead of spread over five years.
What Has an Expiration Date
Some pieces of the 2025 law were written to be temporary. Anything temporary is a natural bargaining chip in future budget talks, so these are the items most likely to come up again:
The higher state and local tax (SALT) deduction cap. The cap rose to $40,000 in 2025 (a little higher for 2026), with a reduction for higher incomes. It is scheduled to drop back to $10,000 in 2030.
The deductions for tips, overtime, and seniors. These are scheduled to run through 2028.
None of these expire before the next presidential term begins, which means 2028 and 2029 are when the bigger tax conversation is likely to happen.
What Could Shift in the Next Two Years
Even without a major new tax law, there are a few areas where a new Congress can have an effect. We are not predicting outcomes here; we are pointing out what to watch.
IRS funding and staffing. Congress sets the IRS budget each year. That affects how quickly notices go out, how long it takes to reach someone on the phone, and how much collection and audit activity happens.
Government funding deadlines. If spending bills stall, a shutdown can slow IRS service, delay refunds, and pile up correspondence.
Trade, tariffs, and prices. Inflation is still running above the Federal Reserve’s target, and the Fed has kept rates where they are for now. Trade policy and borrowing costs affect your pricing, inventory, and cash flow even when the tax code does not change.
Health insurance costs for the self-employed. Premium assistance and marketplace rules remain an active debate, and they matter a great deal for owners who buy their own coverage.
The "lame duck" session. The current Congress returns before the new one is seated.
Last-minute bills in November and December sometimes carry tax provisions, so we will be watching.
What We Would Not Do
We would not make a big move based on a prediction. We do not recommend selling a business, rushing a major purchase, or pushing income into a different year purely because of how you think Washington will act. Plans built on guesses tend to cost more than they save.
What We Would Do Instead
Plan 2026 under the current rules. They are settled for this year, and there is still time to use them well before December 31.
Keep some flexibility. Healthy cash reserves and clean, current books let you act quickly if something does change.
Check in again mid-2027. By then, we will know what the new Congress is actually working on, rather than what people are guessing about this week.
What This Means for Your Life
Election seasons are noisy, and it is easy to absorb that noise as worry. You do not have to carry every headline home with you. Knowing which rules are settled and which are still in play lets you stop scrolling, make decisions with a clear head, and get back to running your business and enjoying the people in your life.
What It Takes to Get Started
If you want to know how all of this applies to you specifically, we will sit down with your year-to-date numbers and your 2025 return and walk through what matters for your business. Most owners leave that conversation with two or three clear action items, not a long list of worries.
Who We Are
Business Advisory Services LLC has worked alongside small business owners in Wisconsin and the surrounding states for more than 20 years, from our offices in Middleton and Eau Claire. We handle accounting, bookkeeping, payroll, tax preparation, business advisory, and tax resolution under one roof. That means the people who plan your taxes are the same people who know your books, and if something ever goes sideways with the IRS or the Wisconsin Department of Revenue, you are not starting over with a stranger.
Call us at 608-831-4900 ext. 801 to set up a planning conversation. There is no pressure and no jargon. And if a prior-year balance or an unresolved IRS notice is part of what keeps you up at night, bring that too. It is part of the picture, and it is something we help owners resolve every week.
This article is general information based on federal and Wisconsin tax rules as of November 2026. It is not advice for your specific situation. Please talk with us before acting on it.
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