November 6, 2026 | Accounting & Business Services, Inc.
The IRS has released its annual inflation adjustments for 2027. For Racine and Mount Pleasant business owners, these figures provide a useful starting point for next year’s planning—but they should not be confused with the rules for your 2026 return.
What is changing?
For 2027, the standard deduction increases to $33,200 for married couples filing jointly and $16,600 for single taxpayers. The maximum child tax credit rises to $2,300, subject to eligibility requirements.
Businesses will also see a higher Section 179 expensing ceiling of $2.64 million. A higher ceiling does not mean every equipment purchase qualifies or that an immediate deduction is always the best choice. Internal Revenue Service
What should you do now?
Keep year-end decisions focused on your actual business needs and current-year circumstances. Before buying equipment, changing owner compensation or adjusting tax reserves:
Separate your 2026 tax projection from your 2027 forecast.
Review expected business profit alongside household income.
Compare the cash cost of a purchase with its potential tax benefit.
Confirm eligibility, applicable limitations and Wisconsin treatment.
These adjustments are established federal figures, not campaign proposals. They generally apply to the 2027 tax year, with returns filed in 2028.
Build financing costs into the plan
Today’s employment report showed stronger hiring, while financial markets increased expectations of another interest-rate increase. That is a market expectation—not an announced Federal Reserve decision. 2026 M10 Results
For businesses considering financed purchases, our practical recommendation is to obtain current loan quotes and test whether payments remain affordable if revenue falls short. A deduction can reduce taxes, but it does not eliminate the purchase price or interest expense.
Let’s review what applies to you
Contact Accounting & Business Services, Inc. with questions or to review your year-end and 2027 plans. We can help connect the new figures to your business, household and cash-flow needs.
Sources: IRS 2027 inflation adjustments · BLS employment report
General information only; not individualized tax, legal or investment advice.