Smart Tax Strategy for Corporations: Use the Augusta Rule Wisely
What is the Augusta Rule? Here’s a valuable tax strategy, commonly known as the Augusta rule, that can help you generate tax-free income while claiming a legitimate business deduction. If you own a business structured as an S corporation, a C corporation, or a partnership, you may rent your personal residence to your business for […]
Don’t just donate. Deduct it through your business
Recent tax law changes make it more challenging to receive meaningful tax benefits from charitable giving. However, there are ways to use your business to support charities even in this new environment. Under the current 2026 rules, higher standard deductions and new limitations mean many taxpayers receive little or no benefit from itemizing charitable contributions. Additionally, […]
Small Business Owners: Are You Missing This Tax Break?
Many business owners overlook a powerful strategy that allows them to pay family members, reduce taxes, and avoid payroll taxes altogether by choosing to hire a family member for a “one-time project.” You likely know the traditional approach: hire your child and put them on payroll. That strategy works well for younger children in a […]
How the 2026 Childcare Credit Can Save Small Businesses Thousands
Beginning in 2026, the One Big Beautiful Bill Act (OBBBA) increases the employer childcare credit for small businesses to 50 percent of qualified expenses, up to $600,000 per year. This means the OBBBA childcare credit for small businesses can provide significant tax relief. Even one-owner businesses can benefit—and the savings are substantial. If you operate […]
Exploring Tax Rules When Converting Your Business Vehicle to Personal Use
If you are a sole proprietor and considering converting a business vehicle to personal use, it’s important to understand the tax consequences before making the switch. While the conversion itself may appear simple, the tax impact can arise either immediately or later—and sometimes in unexpected ways. If you used the IRS standard mileage rate for […]
Buying a Business That Doesn’t Close? Here’s How the Tax Rules Apply
If you’re considering buying a business, it’s important to understand how the related investigation and acquisition costs are treated for federal income tax purposes—especially if a deal falls through. A recent example illustrates how these rules work. Jim, an employee looking to become a business owner, spent $15,000 researching an industry and identifying a target […]
Optimizing Tax Strategy: Should Your Business Elect PTET?
Do you own a business organized as a pass-through entity (PTE)—such as a partnership, a limited partnership, an S corporation, or a multimember LLC taxed as a partnership or an S corporation? If so, you face an important tax decision: Should your business elect pass-through entity taxes (PTET)? For the past several years, many PTE […]
Essential Tax Insights for Businesses Operating Multiple Corporations
If you operate multiple corporations, you might assume each one entitles you to its own set of tax benefits, including separate Section 179 limits, additional credits, or even expanded retirement plan flexibility. Unfortunately, under controlled group corporation tax rules, the tax code doesn’t see it that way. Hidden within IRC Section 1563 are rules that […]
A Small Business Owner’s Guide to Health Plans and Tax Savings
All small-business owners with one to 49 employees should have a medical plan for their business. Sure, it’s true that with 49 or fewer employees, the tax law does not require you to have a plan, but you should. When you have 49 or fewer employees, most medical plan tax rules are straightforward. Here are […]
Optimize Year-End Vehicle Tax Deductions
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 this now! Take Back Your Child’s or Spouse’s Car, and Sell It […]