Strategic Tax Articles
Welcome to the Philadelphia CPA insights blog, brought to you by Mark S. Fineberg CPA. Every time a new tax ruling, pronouncement, or tax change occurs, stop by this blog to learn more. Here you can find and explore the most advanced legal, ethical, and moral tax saving strategies allowed by the U.S. Tax Code. Enjoy.
Recent Insights
More on the Taxability of Tip Income
Congress created a valuable new tax break for tipped workers under the One Big Beautiful Bill Act. The No Tax on Tips deduction applies retroactively beginning January 1, 2025, and the IRS has designated 2025 as a transition year. As a result, the deduction ... (continued)
S Corporation Strategy the Does NOT Work
We continue to see aggressive advice circulating about routing personal commissions through an S corporation to reduce self-employment tax. This strategy sounds attractive, but it fails under long-standing tax law and creates significant audit risk. Consider a common setup: An individual earns commissions under contracts ... (continued)
Work Clothing Rules for Tax Deductibility
Taxpayers often assume that clothing purchased for work qualifies as a tax deduction. The tax law takes a much narrower view. As a rule, the IRS does not allow a deduction for work clothing if it serves as everyday streetwear. This rule applies even ... (continued)
1031 Exchange for Serious Real Estate Investors
Serious real estate investors rely on the Section 1031 exchange because it allows them to grow wealth faster while legally deferring federal income taxes. When you sell rental property without using a 1031 exchange, capital gains tax and depreciation recapture immediately reduce the cash ... (continued)
IRS Section 318 Attribution Rules Can Create Problems
Many taxpayers assume that tax law looks only at the stock they actually own. Section 318 proves that assumption wrong. The Section 318 attribution rules can treat you as owning business interests you never purchased, simply because of family relationships, entity ownership, or even ... (continued)
The Importance of an Accountable Plan For Auto Reimbursements
If you receive mileage reimbursements from your employer or your corporation, you may face an unexpected tax result when you sell or trade your vehicle. Many employees assume that mileage reimbursements end the tax story. That assumption often leads taxpayers to miss a valuable ... (continued)
More on Home Office
Many taxpayers panic when they hear the term “depreciation recapture” and decide to skip depreciation on a home office to avoid future tax. That strategy usually backfires. The tax law creates unexpected consequences when you claim zero depreciation, and those consequences often cost more ... (continued)
IRS Doing Away with Paper Check Refunds
Your tax refund will no longer arrive by paper check. The IRS recently announced that it will stop issuing refund checks, with limited exceptions, and will require taxpayers to receive refunds electronically. Why the Change? Paper checks cost more, create security risks, and take much longer ... (continued)
Filing Gift Tax Returns May Be Beneficial
The givers of gifts (donors), not the recipients (donees), file gift tax returns. If you give money or property, you may be legally required to file a gift tax return with the IRS—even if you owe no gift tax. In fact, most people who ... (continued)
Crypto Tax Reporting is Here- Must Read
After four years of work, the IRS has finalized its cryptocurrency regulations, and crypto tax reporting now begins. Starting with the 2025 tax year, custodial crypto platforms must report taxable crypto transactions directly to the IRS. “Digital asset brokers” must handle this reporting when they ... (continued)
Health Insurance Deduction Rules
We are writing to update you on the latest developments in health insurance for S corporation owners. As a more-than-2-percent S corporation owner, you are entitled to some good news when it comes to your health insurance. To ensure that your health insurance deductions are ... (continued)
Year-End Tax Planning for Existing Vehicles
Wow, how time flies! Yes, December 31 is just around the corner. That’s your last day to find tax deductions available from your existing business and personal (yes, personal) vehicles that you can use to cut your 2025 taxes. But don’t wait. Get on ... (continued)
Year-End Business Vehicle Strategies
Here’s an easy question: Do you need more 2025 tax deductions? If the answer is yes, continue reading. Next easy question: Do you need a replacement business vehicle? If so, you can simultaneously solve or mitigate the first problem (needing more deductions) and the ... (continued)
Tear-End Retirement Planning Strategies
The clock continues to tick. Your retirement is one year closer. You have time before December 31 to take steps that will help you fund the retirement you desire. Here are five things to consider. 1. Establish Your 2025 Retirement Plan First, a question: Do you have ... (continued)
Year-End Tax Planning Tax Reduction Strategies-2025
The purpose of this letter is to reveal how you can get the IRS to owe you money. Of course, the IRS will not likely cut you a check for this money (although in the right circumstances, that will happen), but you’ll realize the cash ... (continued)
Medical Reimbursement Plan Revisited
I’m excited to introduce you to a valuable strategy that could significantly reduce your taxable income by converting personal medical expenses into business deductions. This approach, known as the 105-Health Reimbursement Arrangement (105-HRA), is particularly advantageous for businesses with a single employee—often, the business ... (continued)
No Tax on Tips-Really?
Congress recently passed the One Big Beautiful Bill Act, or OBBBA, which introduces a new tax deduction for tips beginning in 2025. This provision, called “No Tax on Tips,” sounds broader than it really is. The deduction is both temporary and limited in scope, ... (continued)
Business Interest Deductions INCREASED under OBBBA!
Here’s good news beginning in 2025. The One Big Beautiful Bill Act (OBBBA) permanently eases the rules that limit the deduction for business interest expense. Background The deduction for business interest expense is generally limited to the sum of business interest income, 30 percent of adjusted ... (continued)
Here's What to do if You Have Not Paid In Your 2025 Estimated Tax Payments
Here’s an important tax planning strategy that can save you thousands in penalties if you’ve missed estimated tax payments for 2025. The Penalty Problem When you don’t make your 2025 estimated tax payments on time, the IRS charges a non-deductible 7 percent penalty that compounds daily. Because ... (continued)
OBBBA Increases Standard Deductions!!
Starting in 2025, the One Big Beautiful Bill Act (OBBBA) increases and makes permanent the larger standard deductions introduced by the Tax Cuts and Jobs Act. The new standard deductions for this year (2025) are $15,750 for single filers, $31,500 for married ... (continued)