Home Office Deduction Update for 2026: Guidance for Self-Employed Taxpayers
If you are self-employed and also have access to an office elsewhere, you may assume you cannot deduct a home office. Many people believe this, and IRS auditors sometimes raise it. But the law says otherwise, and the IRS’s own guidance backs you up. Your home office qualifies as your principal place of business when […]
A Fresh Look at the Paid Family and Medical Leave Tax Credit
The paid family and medical leave tax credit is now a permanent part of the tax code, and the 2026 rules changed enough that it deserves a fresh look even if you considered it before and passed. Here is what the credit does: If you have a written leave policy in place, you earn a […]
Home Office Deduction Rules for Business Owners
Many business owners assume they cannot claim a home-office deduction because their home is too small. In fact, the tax law says otherwise. A home office does not have to be an entire room. If you use a clearly defined area of your home exclusively for business, you may qualify for the deduction—even if that […]
S Corporation Health Insurance: Avoid These Costly Deduction Mistakes
If you own more than 2 percent of an S corporation, the good news is that the rules for deducting your health insurance remain unchanged for 2026. By following a few important steps, you can continue to deduct the cost of coverage for yourself, your spouse, your dependents, and your children under age 27. To […]
Understanding Inventory Accounting Methods for Small Businesses
Businesses that produce goods or purchase merchandise for resale have traditionally treated those items as inventory. Under the general tax rules, the business capitalizes inventory costs and deducts them only in the year the inventory is sold. The Tax Cuts and Jobs Act changed these rules for many small businesses. As a result, qualifying businesses […]
A Valuable Tax Break for Pass-Through Businesses Continues in 2026
Beginning in 2026, the Section 199A qualified business income deduction becomes a permanent part of tax planning for pass-through business owners. This deduction can allow owners of sole proprietorships, partnerships, S corporations, and certain other pass-through businesses to deduct up to 20 percent of their qualified business income. C corporations do not qualify. The 2026 […]
Buying or Launching a Business? Know the Tax Rules
Starting or buying a business often requires significant spending before the business officially opens. Fortunately, the tax law allows you to deduct at least some of these start-up costs instead of waiting until you sell the business to receive a tax benefit. Deducting Start-up Costs In general, you may deduct up to $5,000 in qualifying […]
A Guide to Deducting Unreimbursed Partnership Expenses
Partners in partnerships and members of LLCs taxed as partnerships often pay business-related expenses out of their own pocket. Common examples include meals with prospective clients, vehicle expenses, professional education, subscriptions, and home-office costs. In many cases, these unreimbursed expenses may be deductible on the partner’s personal tax return. Only if the partnership agreement or […]
Is Your Business Required to File Form 720 This July?
If your business provides health benefits through health reimbursement arrangements such as a 105-HRA, a QSEHRA, or an ICHRA, you likely must file IRS Form 720 and pay the annual Patient-Centered Outcomes Research Institute (PCORI) fee by July 31, 2026. Although the fee is small, many business owners overlook this filing requirement. Failing to file […]
A Business Owner’s Guide to the Augusta Rule
The so-called Augusta Rule can create a valuable tax-saving opportunity for business owners who operate through an S corporation, a C corporation, or a partnership. Under this rule, you may rent your personal residence to your business for up to 14 days per year and receive the rental income completely tax-free. At the same time, […]