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
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)
Mortgage Interest Deduction Under OBBBA
If you deduct mortgage interest, the One Big Beautiful Bill Act (OBBBA) brings some important updates. First, it permanently caps the mortgage interest deduction for interest on up to $750,000 of acquisition debt ($375,000 if married filing separately). Interest on home equity loans remains deductible ... (continued)
One Beautiful Tax Bill!!
If the $10,000 cap on state and local tax (SALT) deductions limits your write-offs, here’s good news: the One Big Beautiful Bill Act (OBBBA) temporarily increases the cap starting in 2025. From 2025 through 2029, you may deduct up to $40,000 if married filing ... (continued)
No Cash Outlay Tax Deduction-Here's The Details!
Do you have a personal vehicle? Thanks to the One Big Beautiful Bill Act (OBBBA), you may be eligible for a valuable “no new cash outlay” tax deduction beginning in 2025. Here’s how it works: If you convert a personal-use vehicle to business use, the law ... (continued)
Business Conventions & Seminars--Tax Considerations
You and your business likely benefit from attending business conventions and seminars. It’s essential to know which expenses you can deduct—and how to ensure they qualify. As a business owner, you might assume that if a seminar is “business related,” it’s automatically deductible. But that’s ... (continued)
Vacation or Rental Property Owners-Must Read!
If you own a vacation home or rent out a second property, there’s a tax case you should know about—one that could save you thousands of dollars in lost deductions. Charles M. Akers owned a mountain cabin in Alpine, California, which he rented out through ... (continued)
More on Estimated Tax Payments
Missing an estimated tax payment can result in non-deductible penalties. Make timely payments via IRS Direct Pay or EFTPS—secure and convenient methods to help you avoid the penalties. Key Points Due dates. For tax year 2024, payment deadlines are April ... (continued)
Attention Day Traders
Stock traders who seek to earn profits by frequently buying and selling stocks to capitalize on daily market movements can qualify as day traders for tax purposes. Day traders are in the business of buying and selling securities—in other words, they are businesspeople, not ... (continued)
Business Use of Vehicle -Potential Big Surprise!
If you’ve used your personal vehicle for business—whether you’re a sole proprietor or you received mileage reimbursement from your S or C corporation—there may be a valuable tax deduction waiting for you. When you use the IRS standard mileage rate (or when your corporation uses ... (continued)
Proper Use Of Corporate Vehicle-Must Read!
If your S or C corporation owns a vehicle that you also use personally, there are important tax rules you need to follow—and smart planning can help you save significantly. Let’s say you use a corporate vehicle 80 percent for business and 20 percent for ... (continued)
Potential $150K Penalty for Not Filing form 5500for Your Retirement Plan!
How would you like to owe the IRS a $150,000 penalty because you failed to file a simple two-page form? It can happen all too easily if you have a solo 401(k) or another self-employed retirement plan. If you’re self-employed and you have a qualified ... (continued)
Home Office Reimbursement from Your S Corp-Revisited!
You likely know that the home-office tax deduction provides tax savings to business owners. It turns otherwise nondeductible personal expenses into valuable business deductions. When you operate your business as a proprietorship, you simply deduct home-office expenses on Schedule C. But when you operate ... (continued)
Digitize Receipts-Here's Why!!
When it comes to IRS audits, one of the most common reasons taxpayers lose deductions is the lack of proper documentation. While your credit card or bank statements prove you spent money, they don’t show what you purchased. Without supporting receipts or invoices, these ... (continued)
New Excess Business Loss Rules
For 2025, it’s crucial to understand how recent tax law changes may impact your ability to deduct business losses. One such provision, the excess business loss disallowance rule, could limit how much of your business loss you can deduct each year—and delay the tax ... (continued)
Commercial Property Investors-Must Read!
With bonus depreciation declining to 40 percent this year, Section 179 expensing is a powerful alternative. It allows you to deduct up to the full cost of personal property and eligible improvements in the year you place them in service. For 2025, the maximum ... (continued)
Independent Contractor Status Revisited
It can cost you a bundle if you misclassify a worker as an independent contractor instead of an employee for federal employment tax purposes. The IRS can make you pay back payroll taxes plus penalties—in some cases, these can equal 40 percent of gross ... (continued)