Gave a Gift? Here’s When You Need to File a Gift Tax Return
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 file gift tax returns do not pay any gift tax because each […]
Navigating the New Tip Tax Deduction: Eligibility, Limits, and Reporting Requirements
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, and many tips will still be subject to taxation. Who Qualifies […]
OBBBA Delivers Bigger Tax Deductions for Business Owners
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 You carry disallowed business interest forward to future years. While these rules remain in place, the […]
Understanding the Overtime Deduction Under the OBBBA
Do you regularly earn overtime pay? If so, the One Big Beautiful Bill Act (OBBBA) may help lower your federal income tax bill by adding to the deduction of qualified overtime income. New Overtime Deduction Before 2025, the IRS taxed every dollar of your overtime pay as ordinary income. Beginning this year (2025) and continuing […]
OBBBA Implements 2025 Deduction Increases
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 The IRS will adjust the amounts annually for inflation beginning in 2026. Additional deductions remain for those who are age […]
Major Tax Changes for Contractors and Businesses: The 1099 Form Update
Filing tax forms is never fun—but it’s important to stay ahead of changes that can reduce your reporting burden. Here are some major 1099 form updates from the One Big Beautiful Bill Act (OBBBA). If your business pays independent contractors (non-employees) for services, you are required to file IRS Form 1099-NEC if total payments exceed […]
Turn Your Corporate Vehicle into a Tax-Smart Asset
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. Read further to learn how to handle your corporate vehicle as a tax asset. Let’s say you use a corporate vehicle 80 percent for business […]
Understanding Excess Business Loss Limits
As you plan 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 in a given year—and delay the tax benefits you expect. What Is the […]
How to Avoid Estimated Tax Penalties Using Strategic Withholding
If you’re making quarterly estimated tax payments, missing a deadline can be costly. The IRS currently charges a 7 percent penalty for underpayments—and since penalties aren’t deductible, the real cost can feel closer to 11 percent. But here’s our good news: strategic withholding can often help you avoid or erase those estimated tax penalties—even late […]
How to Deduct Disaster Losses on Taxes for Individuals
The federal tax law provides relief if a disaster—such as a fire, flood, or hurricane—damages your personal (non-business) property, including your home, belongings, and vehicle. You may be able to deduct these disaster losses from your taxable income, but the rules are complex and often restrictive. Recent changes to the law have expanded eligibility, allowing […]