Book Update Tracking Log

Last Update: 01/26/2026

• Page 18
  • Typo: If your basis hits zero and you receive cash from the business beyond this zero basis, you’ll have to pay ordinary income tax.
  • Correction: If your basis reaches zero and you receive cash distributions beyond this, the excess distributions are generally taxed as capital gains. However, in some cases, certain types of income could be taxed at ordinary rates.
• Page 19
  
  • Typo: Remember, any further distributions you receive will be taxed as ordinary income if your basis hits zero.
  • Correction: Remember, any further distributions you receive will generally be taxed as capital gains if your basis hits zero.
• Page 70
  
  • Correction: Taxpayers are urged to switch to electronic payment methods immediately to avoid delays, as the IRS is reducing its reliance on paper processing.
  • Website Resource: https://www.irs.gov/payments
• Page 213
  
  • Typo: Note: There is a percentage limit to how much of an item’s cost you can deduct with bonus depreciation. Just be aware of this.
  • Correction: Under the One Big Beautiful Bill Act, 100% bonus depreciation was restored for property acquired after January 19, 2025.