Quick answer: The One Big Beautiful Bill Act (signed July 4, 2025) restored 100% bonus depreciation permanently, raised the Section 179 limit to $2.56M, made the 20% QBI deduction permanent, and doubled the dependent care FSA to $7,500. For a Broward County healthcare practice buying $180,000 in equipment, that is a potential $45,000-$54,000 first-year tax reduction. If you have not updated your tax strategy since mid-2025, you are almost certainly overpaying.

The One Big Beautiful Bill Act (OBBBA) was signed into law on July 4, 2025.

If you run a healthcare practice or service business in Broward County and you haven't adjusted your tax strategy since then, you're probably overpaying. Not by a little. By thousands -- potentially tens of thousands.

Here's the problem: most of the coverage you've read about these changes is written for generic "business owners." It doesn't address the specific situations healthcare providers and professional services firms deal with -- like SSTB phase-outs on QBI, equipment depreciation for medical and dental practices, or how the new dependent care FSA limit interacts with practice owner compensation.

This post breaks down exactly what changed, what it means for your specific situation, and what you should do about it before your next estimated tax payment.

The 5 Changes That Actually Matter for Your Practice

1. 100% Bonus Depreciation Is Back -- Permanently

What changed: Under the original Tax Cuts and Jobs Act, bonus depreciation was phasing down: 80% in 2023, 60% in 2024, 40% in early 2025. The OBBBA restored it to 100% for property placed in service after January 19, 2025 -- and made it permanent.

Why this matters for healthcare practices:

That imaging machine, dental chair, CBCT scanner, EHR system upgrade, or therapy room build-out you've been putting off? You can now write off 100% of the cost in the year you buy it. Not spread over 5-7 years. All of it. Year one.

Real example -- dental practice in Davie:

You buy a $180,000 CBCT scanner in 2026.

That's nearly $50,000 in additional cash in your pocket in year one versus spreading the deduction over seven years.

Real example -- consulting firm in Fort Lauderdale:

You spend $45,000 on a tenant improvement build-out for a new office. Under the old rules, qualified improvement property (QIP) had a 15-year life. With 100% bonus depreciation, you deduct all $45,000 in year one.

What qualifies:

• Medical and dental equipment (chairs, lasers, imaging, sterilization)
• Computer systems and practice management software
• Tenant improvements and office build-outs (qualified improvement property)
• Furniture and fixtures
• Vehicles over 6,000 lbs GVWR (see below)
• Technology infrastructure (servers, networking, security systems)

What doesn't qualify:

• Land
• Buildings themselves (the structure, not improvements)
• Used property acquired from a related party

The cash flow question: Bonus depreciation saves you taxes, but you still have to spend the money first. A $180,000 equipment purchase saves you $57,600 in taxes, but you need $180,000 in cash (or financing) to make the purchase. This is where cash flow forecasting matters -- you need to know whether the practice can absorb the purchase before you pull the trigger.

Not sure if your cash flow can handle a major equipment purchase? Read about our Cash Flow Advisory service or book a diagnostic call.

2. Section 179 Jumped to $2.56 Million

What changed: The OBBBA raised the Section 179 expensing limit from $1 million to $2.56 million (for 2026, inflation-adjusted) with a phase-out threshold of $4.09 million. Both are now indexed for inflation permanently.

Section 179 vs. Bonus Depreciation -- when to use which:

The practical takeaway: For most healthcare practices and service firms in Broward County, you'll use Section 179 first (up to your taxable income), then apply bonus depreciation to any remaining equipment cost. Together, they can wipe out the entire cost of your equipment purchases in year one.

The SUV rule (practice owners take note):

Vehicles over 6,000 lbs GVWR get special treatment:

• Section 179 deduction: Up to $32,000
• Bonus depreciation: 100% on the remaining cost, no cap
• Combined: You can potentially deduct the full purchase price in year one

Common qualifying vehicles for practice owners: Chevrolet Tahoe, Ford Expedition, BMW X5 (some configurations), Mercedes GLE, Cadillac Escalade, Toyota Land Cruiser, Jeep Grand Cherokee L, most full-size pickup trucks.

Requirements: More than 50% business use. Document it. If your $85,000 Escalade is 70% business use, you deduct 70% of the cost. If you can't prove business use, you deduct nothing.

3. The QBI Deduction Is Now Permanent -- But the SSTB Trap Still Exists

What changed: The Section 199A Qualified Business Income deduction was set to expire after 2025. The OBBBA made it permanent at 20% and expanded the phase-in ranges for SSTB limitations.

Here's where healthcare and professional services owners need to pay attention.

Your practice is almost certainly a Specified Service Trade or Business (SSTB). That includes:

• Physicians, surgeons, and medical specialists
• Dentists and orthodontists
• Therapists (physical, mental health, occupational)
• Veterinarians
• Attorneys
• Accountants and financial advisors
• Consultants
• Engineers and architects

Being an SSTB means your 20% QBI deduction phases out as your taxable income rises.

2026 SSTB Phase-Out Thresholds (expanded under OBBBA):

The phase-in range increased from $50,000/$100,000 to $75,000/$150,000 -- meaning the cliff is less steep, but it's still a cliff.

Real example -- physician in Plantation (MFJ):

The difference between getting the full QBI deduction and getting nothing is $24,320 per year. That's real money.

Strategies to get under the threshold (or stay there):

1. Maximize retirement contributions. A solo 401(k) or defined benefit plan reduces taxable income dollar-for-dollar. A $69,000 solo 401(k) contribution drops you from $450K to $381K taxable -- potentially into full QBI territory. (See retirement section below.)

2. Time equipment purchases. Stack bonus depreciation and Section 179 deductions into years where you need to reduce taxable income to hit the QBI threshold.

3. Manage S-Corp salary. If you've elected S-Corp (and you should read our S-Corp Election guide if you haven't), your reasonable salary affects both QBI and payroll taxes. These interact -- optimize them together, not separately.

4. Charitable giving strategies. Donor-advised funds let you bunch multiple years of charitable giving into one year, dropping taxable income below the threshold in that year.

The minimum deduction (new for 2026):

Even if you're above the phase-out, the OBBBA guarantees a minimum QBI deduction of $400 for taxpayers with at least $1,000 of QBI. It's not much, but it exists. Indexed to inflation going forward.

4. Retirement Contribution Limits Jumped -- And the Rules Changed

2026 Limits:

The big opportunity for high-income practice owners:

If you're a physician, dentist, or specialist earning $300K+, a defined benefit plan lets you deduct up to $290,000 per year in contributions. Combined with a 401(k), you can shelter $350,000+ from taxation annually.

This is the single most powerful tool for getting your taxable income below the SSTB phase-out threshold. A $300,000 defined benefit contribution on $550,000 of practice income drops your taxable income to $250,000 -- well within full QBI territory.

The trade-off: the money is locked up until retirement age, the plan has ongoing actuarial costs ($2,000-5,000/year), and you must fund it consistently for at least 3-5 years. This isn't for everyone. But for the right practice owner, it's worth $50,000+ in annual tax savings when you combine the deduction with QBI eligibility.

New rule for 2026 -- mandatory Roth catch-up:

Starting January 1, 2026, if your FICA wages exceeded $150,000 in 2025, catch-up contributions must be made on a Roth (after-tax) basis. This affects most practice owners who are S-Corp shareholders paying themselves reasonable compensation above $150K.

This doesn't eliminate the catch-up -- you can still contribute $8,000 (or $11,250 if 60-63) -- but it goes into a Roth 401(k), not pre-tax. Plan accordingly with your payroll provider.

5. FSA and HSA Limits Increased -- And the Dependent Care FSA Doubled

2026 Limits:

The dependent care FSA increase is the sleeper hit.

The OBBBA raised the dependent care FSA from $5,000 to $7,500 per household ($3,750 for married filing separately). That's a 50% increase. If you have children under 13 in daycare, preschool, or after-school programs, you just got an additional $2,500 of pre-tax income -- saving roughly $750-$925 in taxes depending on your bracket.

For practice owners with young families in Broward County (daycare in South Florida averages $1,200-1,800/month), this maxes out fast. Make sure your plan documents are updated to reflect the new limit -- many administrators haven't changed their defaults yet.

Three More Changes Worth Knowing

Standard Deduction Increased

• Single: $16,100 (up from $15,700)
• Married Filing Jointly: $32,200 (up from $31,500)
• Head of Household: $24,150 (up from $23,625)

The TCJA tax brackets are now permanent -- they were set to revert to higher pre-2017 rates. That didn't happen. Your marginal rates stay where they are.

Child Tax Credit Increased to $2,200

Up from $2,000. Indexed to inflation going forward. Refundable portion is $1,700 for 2025 with annual adjustments. Phase-outs remain at $200K single / $400K MFJ.

Estate and Gift Tax Exemption Jumped to $15 Million

This was scheduled to be cut in half at the end of 2025. Instead, the OBBBA raised it to $15 million per person ($30 million per couple) in 2026, indexed to inflation. If you're a practice owner with significant assets, estate planning just got more favorable.

The Action Plan: What to Do Before Your Next Estimated Payment

If You're a Healthcare Practice Owner:

Before June 15 (Q2 estimated taxes):

• Recalculate your estimated tax payments. If you're planning a major equipment purchase, your 2026 tax liability may be significantly lower than last year. Overpaying estimates ties up cash unnecessarily.
• Identify equipment purchases to accelerate. That new treatment chair, imaging system, or technology upgrade you planned for 2027? Buying it in 2026 gets you 100% bonus depreciation. Run the numbers.
• Check your SSTB status and QBI threshold. Are you above or below the phase-out? If you're in the range ($398K-$548K MFJ), retirement contributions and equipment deductions could push you into full QBI eligibility.
• Update your dependent care FSA election. If you have kids in daycare and you're at the old $5,000 limit, increase to $7,500. Call your plan administrator.

Before September 30 (Q3 estimated taxes):

• Open or fund retirement plans. Solo 401(k) and defined benefit plans need to be established by December 31 of the tax year (though contributions can be made later). Start the paperwork now.
• Review S-Corp reasonable salary. Does your current salary put you in the right position for both payroll tax savings AND QBI eligibility? These interact. Optimize together. Read our S-Corp guide.
• Model year-end scenarios. What happens if revenue comes in 10% higher than expected? 10% lower? What equipment purchases make sense at different income levels?

Before December 31:

• Execute equipment purchases. Property must be placed in service (not just ordered) by 12/31 to qualify for 2026 deductions.
• Fund retirement accounts. Solo 401(k) employee deferrals must be made by 12/31. Employer contributions can wait until the tax filing deadline.
• Consider charitable giving strategies. If you're on the edge of the SSTB phase-out, a donor-advised fund contribution can pull you under the threshold.
• Review entity structure. If you're not an S-Corp and your profit is consistently above $100K, this is the analysis to do.

If You Run a Professional Services Firm:

Same timeline as above, plus:

• Review 1099 vs. W-2 classifications. If you're bringing on contractors, the OBBBA didn't change misclassification rules -- the IRS is still aggressive here. Make sure your classifications are clean.
• Plan technology investments. Software, hardware, and security infrastructure qualify for both Section 179 and bonus depreciation. If you've been underinvesting, 2026 is the year to catch up.
• Model the QBI impact on partner compensation. For multi-owner firms, each partner's taxable income determines their QBI eligibility independently. One partner might get the full deduction while another gets nothing.

Frequently Asked Questions

Did the QBI deduction increase to 23%?

No. Earlier drafts of the bill proposed increasing it from 20% to 23%, but the final law kept it at 20%. What changed is that it's now permanent (it was set to expire after 2025) and the phase-in ranges for SSTB limitations were expanded.

I'm a physician making $500K. Do I get any QBI deduction?

If you're filing jointly and your taxable income is above $548,400, your QBI deduction is $0 (other than the new $400 minimum). The strategy is to use retirement contributions, equipment deductions, and other planning tools to get your taxable income below $398,400 -- where you'd get the full 20% deduction. That can be worth $24,000+ in annual tax savings.

When did bonus depreciation go back to 100%?

For property placed in service after January 19, 2025. Property placed in service from January 1-19, 2025 remains at 40%. This is permanent -- no more phase-downs.

Can I use Section 179 and bonus depreciation together?

Yes. Apply Section 179 first (up to $2,560,000 for 2026, limited to your taxable income), then apply 100% bonus depreciation to the remaining cost. For most practice-level equipment purchases, one or the other will cover the full amount.

I missed the March 15 S-Corp deadline. Is it too late?

No. Late election relief is available. Read our full guide on S-Corp election timing, including the late election process.

Should I buy equipment just for the tax deduction?

Never buy equipment you don't need just to get a deduction. A $100,000 purchase in the 32% bracket costs you $68,000 after the tax savings. You're still out $68,000. Buy equipment your practice actually needs -- the deduction makes the timing favorable, not the purchase itself.

How does the new Roth catch-up rule affect me?

If your 2025 FICA wages exceeded $150,000 (which includes most S-Corp practice owners paying reasonable compensation), your 2026 catch-up contributions ($8,000, or $11,250 if you're 60-63) must go into a Roth 401(k). The contribution still reduces your current-year cash, but it doesn't reduce your current-year taxable income. Talk to your payroll provider about setting this up correctly.

What about the dependent care FSA -- can I change my election mid-year?

Generally, you can only change your FSA election during open enrollment or within 30 days of a qualifying life event. If your plan year started January 1 and you didn't elect the new $7,500 maximum, you may need to wait until next open enrollment. Check with your plan administrator -- some have allowed mid-year changes to reflect the new law.

Do these changes affect Florida state taxes?

Florida has no personal state income tax, so pass-through entity owners (S-Corps, partnerships, sole props) pay no state tax on business profits. Florida does have a corporate income tax (5.5%) that applies to C-Corps -- but if you're an S-Corp or LLC, your Florida state tax impact is zero on this income. The OBBBA changes are all federal.

Bottom Line

The OBBBA is the most significant tax law change since the Tax Cuts and Jobs Act in 2017. For healthcare practice owners and service business operators in Broward County, the opportunities are substantial -- but only if you act on them.

The combination of permanent 100% bonus depreciation + expanded Section 179 + permanent QBI deduction + higher retirement limits creates a planning environment where the right moves can save a practice owner $30,000-$80,000 in a single year.

The wrong move? Doing nothing and finding out next April that you overpaid by $25,000 because you didn't time your equipment purchase, maximize your retirement contributions, or manage your taxable income relative to the SSTB threshold.

Don't wait until Q4 to start planning. By then, your options are limited.

Let's Run Your Numbers

We don't do generic tax planning. We model your specific situation:

• Your actual income and payer mix
• Your equipment needs and purchase timing
• Your retirement contributions and QBI threshold
• Your S-Corp salary and distribution split
• Your cash flow reality (can you afford the deduction?)

Week 1: We pull your current-year projections and prior-year returns
Week 2: We model 2-3 scenarios and show you the tax impact of each
Week 3: We give you a specific action plan with dollar amounts and deadlines

Book a 2026 Tax Planning Session (30 min, we'll tell you exactly where you stand)

Or email hello@benefique.com with "2026 tax planning" in the subject.

Benefique Tax & Accounting
Davie, FL | Serving Healthcare Practices & Service Businesses Across Broward County and South Florida

Gerrit Disbergen, EA, is the founder of Benefique Tax & Accounting in Davie, FL. Benefique provides full-service accounting, tax planning, and fractional CFO services to healthcare practices and professional services firms across South Florida. We specialize in the intersection of tax strategy and cash flow reality -- because a deduction you can't afford isn't a deduction at all.

Disclaimer: This article is for informational purposes only and does not constitute tax, legal, or financial advice. Tax situations vary — consult a qualified tax professional for advice specific to your circumstances.