2025 Tax 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)

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)

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)

Mega Backdoor ROTH for Business Owners-Must Read!!

If you are a business owner with no employees and prefer Roth-style retirement savings, you may want to consider the mega backdoor Roth strategy. This powerful tool allows you to contribute significantly more to a Roth account than the standard Roth IRA or even ... (continued)

BOI & FinCEN NO longer in Effect!!!

We have important news regarding the Corporate Transparency Act (CTA) and the requirement to report beneficial ownership information (BOI) to the Financial Crimes Enforcement Network (FinCEN). On March 21, 2025, FinCEN issued an interim final rule that formally removes all BOI reporting requirements for U.S. ... (continued)

Here is a Strategy for Avoiding Paying Taxes on Your RMD

If you have one or more traditional IRAs and are age 73 or older, you’re probably familiar with three of the most dreaded letters in the tax world: RMD, short for required minimum distribution. Starting the year, you turn 73, the IRS requires you ... (continued)

Back-Door Roth Conversion-Consider This!

Have you ever wondered how to get more money into a Roth IRA despite income limits, the backdoor Roth IRA conversion strategy may have caught your attention. It’s a smart planning tool for high-income earners—but only when used with care. First, a quick refresher: Roth ... (continued)

Reimbursed Expensed from your Business--the Right Way!

If you are a member of a multi-member LLC taxed as a partnership (as most are) or a traditional partnership, you may sometimes pay for business expenses out of your pocket. These expenses can include travel and meals, car expenses, continuing education, professional dues, ... (continued)

Correct Way to Pay Yourself

A common question among business owners is how to pay themselves from their businesses properly. The correct method depends on your business structure, so I wanted to give you this quick guide to help you navigate this issue. Sole Proprietors and Single-Member LLCs You ... (continued)

Qualifying Home Office Deduction + Vehicle Deductions

If you are considering purchasing a business vehicle, you may be eligible for significant tax deductions, especially when combined with a qualifying home office. Here’s how: Heavy Vehicle Deductions In 2025, businesses can take advantage of: Section 179 expensing – Deduct ... (continued)

Can RE Professional Deduct Prior Passive Losses?

When deducting your rental property tax losses against your other income is tricky, as you likely know. You have to get the tax law to treat you—say, a computer engineer—as a tax-code–defined real estate professional. Let’s say you get there. Does that status allow immediate ... (continued)