Generated by All in One SEO v4.9.4.1, this is an llms.txt file, used by LLMs to index the site. # Accounting for the Trucking Industry Truck Drivers Audit & Trucking Business CPA ## Sitemaps - [XML Sitemap](https://cpatrucking.com/sitemap.xml): Contains all public & indexable URLs for this website. ## Posts - [Blog](https://cpatrucking.com/blog/) - [How Accrual‑Basis Businesses Can Defer Taxes on Advance Payments](https://cpatrucking.com/how-accrual-basis-businesses-can-defer-taxes-on-advance-payments/) - An advance payment is money received by a business before delivering goods or services. For federal income tax purposes, these payments are generally taxable in the year received. This rule always applies if your business uses the cash method of accounting. However, accrual‑basis businesses may qualify for favorable tax deferral treatment. Tax Deferral PrivilegeAccrual‑basis businesses - [Quadrupled SALT Deduction Limit: Why Itemizing May Save You More in 2025](https://cpatrucking.com/quadrupled-salt-deduction-limit-why-itemizing-may-save-you-more-in-2025/) - Standard Deduction vs. ItemizingWhen filing your individual income tax return, one of the biggest decisions is whether to claim the standard deduction or itemize. The One Big Beautiful Bill Act (OBBBA) has changed the landscape for 2025, making itemizing more attractive for many taxpayers. If your state and local tax (SALT) payments exceeded $10,000 last - [Should You Accelerate Depreciation on Your 2025 Tax Return?](https://cpatrucking.com/should-you-accelerate-depreciation-on-your-2025-tax-return/) - The deadlines for filing 2025 tax returns (or extensions) are quickly approaching. While most tax planning strategies must be completed by December 31 of the tax year, some important decisions can still be made when filing your return. One of the most impactful choices is whether to take advantage of accelerated depreciation deductions, which can - [Tax Filing Status Explained: Joint vs Separate for 2025](https://cpatrucking.com/tax-filing-status-explained-joint-vs-separate-for-2025/) - Married couples filing their 2025 federal income tax returns face an important choice: file jointly or separately. This decision impacts your standard deduction, eligibility for tax credits, tax bracket, and overall liability. The right option depends on your unique financial situation. Minimizing TaxesMost couples benefit from filing jointly, as it often reduces total tax liability. - [How Small Businesses Can Still Claim the Health Insurance Tax Credit](https://cpatrucking.com/how-small-businesses-can-still-claim-the-health-insurance-tax-credit/) - Tax Credits vs. Deductions: Why Credits MatterTax credits reduce your tax liability dollar‑for‑dollar, making them more powerful than deductions, which only lower taxable income. One credit that small businesses often overlook is the health care coverage credit for employers who provide health insurance to their staff. Eligibility for the Health Care Coverage CreditUnder the Affordable - [Claiming Charitable Deductions in 2025: What the IRS Requires](https://cpatrucking.com/claiming-charitable-deductions-in-2025-what-the-irs-requires/) - Before claiming a charitable deduction on your 2025 tax return, make sure you have the right documentation. If you itemize deductions, you may be able to deduct donations made to qualified charities last year. However, the IRS requires proper substantiation, and the rules vary depending on the type and amount of your gift. Substantiating Cash Donations - [How Small Businesses Can Deduct Repairs Immediately](https://cpatrucking.com/how-small-businesses-can-deduct-repairs-immediately/) - Did your company handle repairs on tangible property — such as buildings, equipment, or vehicles — during 2025? Many of these costs may be fully deductible on your 2025 tax return, provided they don’t qualify as “improvements” that must be depreciated over several years. Betterment, Restoration, or Adaptation In general, expenses that improve a building structure, its - [Trump Accounts Explained: Tax-Advantaged Savings for Children](https://cpatrucking.com/trump-accounts-explained-tax-advantaged-savings-for-children/) - IntroductionTrump Accounts (TAs) are a new tax-advantaged savings tool created under the One Big Beautiful Bill Act (OBBBA). They are designed to help children build long-term savings. Eligible children born between 2025 and 2028 can receive a $1,000 government-funded contribution to start their account. Older children under 18 with a Social Security number can also - [SEP Retirement Plans: Deadlines and Tax Benefits for 2025](https://cpatrucking.com/sep-retirement-plans-deadlines-and-tax-benefits-for-2025/) - IntroductionIf you’re self-employed or own a business, there’s still time to set up a Simplified Employee Pension (SEP) and reduce your 2025 tax bill. SEPs are easy to establish, offer generous contribution limits, and allow deductible contributions that lower taxable income. Favorable Deadlines in 2026A SEP can be created as late as the due date - [Common Tax Questions Answered for 2025 Filers](https://cpatrucking.com/common-tax-questions-answered-for-2025-filers/) - IRS Filing Season StartThe IRS will begin accepting 2025 individual income tax returns on January 26, 2026. This start date is consistent with last year, even though IRS staffing has been reduced. Filing Deadlines Standard DeadlineFor most taxpayers, the deadline to file or request an extension is April 15, 2026. Overseas and MilitaryIndividuals living abroad or serving - [Don’t Miss the February 2, 2026 Tax Filing Deadline](https://cpatrucking.com/dont-miss-the-february-2-2026-tax-filing-deadline/) - This year, the usual January 31 deadline for furnishing information returns falls on a Saturday. That means the next business day — February 2, 2026, Groundhog Day — is the official deadline. W-2s for EmployeesBy February 2, employers must furnish and/or file the following 2025 forms: Form W-2, Wage and Tax Statement: This form details - [Understanding Eligible Medical Expenses for Your Tax Return](https://cpatrucking.com/understanding-eligible-medical-expenses-for-your-tax-return/) - If you had substantial medical costs last year, you may be asking whether they can reduce your tax bill on your 2025 income tax return. While the medical expense tax deduction can be valuable, income thresholds and other requirements often make it challenging to claim. On the upside, many taxpayers are surprised by how many types - [2026 Tax Filing Essentials for Pass‑Through Businesses](https://cpatrucking.com/2026-tax-filing-essentials-for-pass-through-businesses/) - If you run a business as a partnership, an LLC taxed as a partnership, or an S corporation, you’re operating what’s known as a “pass‑through” entity. These businesses don’t pay federal income tax directly. Instead, income, deductions, and credits flow through to the owners’ personal tax returns. Here’s what you need to know about filing - [Disaster Relief and Taxes: Casualty Loss Deduction Explained](https://cpatrucking.com/disaster-relief-and-taxes-casualty-loss-deduction-explained/) - Millions of taxpayers face losses each year from severe storms, floods, wildfires, and other disasters. If your home or personal property has been damaged, you may qualify for a casualty loss tax deduction. Recent legislation — the One Big Beautiful Bill Act (OBBBA) — permanently extended limits introduced by the Tax Cuts and Jobs Act - [Ordinary and Necessary: Understanding Business Expense Deductions for 2025](https://cpatrucking.com/ordinary-and-necessary-understanding-business-expense-deductions-for-2025/) - With 2025 behind us and the tax filing deadline approaching, now is the time for businesses to review which expenses qualify as deductions. The rules aren’t always straightforward, and what counts as deductible may surprise you. The General RuleMost deductions aren’t spelled out in the Internal Revenue Code (IRC). Instead, IRC Section 162 provides the - [2026 Tax Planning Guide: Standard Deduction, Retirement, and Estate Changes](https://cpatrucking.com/2026-tax-planning-guide-standard-deduction-retirement-and-estate-changes/) - Each year, tax figures are adjusted for inflation, and 2026 brings additional changes under the One Big Beautiful Bill Act, signed into law on July 4, 2025. Below is an overview of the most important updates for individuals. Note that exceptions or additional rules may apply. Standard Deduction Single and married filing separately: $16,100 Head - [Updated 2026 Tax Breaks and Contribution Limits for Businesses](https://cpatrucking.com/updated-2026-tax-breaks-and-contribution-limits-for-businesses/) - The start of a new year brings updated tax-related figures that businesses should keep in mind. Below is a summary of the key numbers for 2026. Note that exceptions, special rules, or additional limits may apply. Depreciation-Related Tax Breaks Bonus depreciation: 100% Section 179 expensing limit: $2.56 million Section 179 phaseout threshold: $4.09 million Qualified - [New Opportunities for Disability Savings in 2026](https://cpatrucking.com/new-opportunities-for-disability-savings-in-2026/) - Beginning in 2026, more individuals with disabilities will be eligible to open tax‑advantaged ABLE accounts. These accounts, similar to Section 529 college savings plans, allow families and individuals to save for qualified disability expenses while enjoying tax benefits. The SECURE 2.0 Act, signed into law in 2022, expanded eligibility rules, and the One Big Beautiful - [S Corporation Rules Every Business Owner Must Know](https://cpatrucking.com/s-corporation-rules-every-business-owner-must-know/) - An S corporation offers the tax advantages of a partnership combined with the liability protection of a corporation. However, strict IRS requirements mean that maintaining S corporation status requires careful attention and ongoing compliance. Benefits of S Corporation StatusLike a C corporation, an S corporation shields shareholders from personal liability. Unlike a C corporation, it - [OBBBA Tax Changes: Updated Rules for Charitable Deductions Explained](https://cpatrucking.com/obbba-tax-changes-updated-rules-for-charitable-deductions-explained/) - Significant updates to charitable contribution rules will take effect in 2026, impacting how both itemizers and nonitemizers claim deductions. While some taxpayers will face new limits, others — particularly those who take the standard deduction — may benefit from newly restored opportunities. New Charitable Deduction Floor Begins in 2026 Under the One Big Beautiful Bill Act - [Your Guide to the OBBBA Changes Affecting Employee Reporting](https://cpatrucking.com/your-guide-to-the-obbba-changes-affecting-employee-reporting/) - If your business employs workers or engages independent contractors, you have annual information reporting responsibilities. The One Big Beautiful Bill Act (OBBBA) introduces changes affecting these rules, but these will not take effect until the 2026 tax year. New Deductions for Tips and Overtime Income Between 2025 and 2028, the OBBBA establishes new deductions for - [Taking Your RMDs: Who Must Withdraw, When, and How to Optimize](https://cpatrucking.com/taking-your-rmds-who-must-withdraw-when-and-how-to-optimize/) - You likely have a lot of items on your to-do list as the year winds down—holiday shopping, charitable giving, and family gatherings. But for older taxpayers and those who have inherited retirement savings, one task is critical to address before the ball drops: Taking your Required Minimum Distributions (RMDs). Failing to withdraw the necessary amount from - [How the 2025 Interest Deduction Changes Affect Your Business](https://cpatrucking.com/how-the-2025-interest-deduction-changes-affect-your-business/) - Businesses can generally deduct interest paid or accrued for federal tax purposes, but limits apply. Starting in 2025, changes under the One Big Beautiful Bill Act (OBBBA) will allow larger deductions for many taxpayers. Understanding the LimitationThe deduction for business interest expense is typically capped at 30% of adjusted taxable income (ATI). This applies to - [Year-End Tax Planning Guide: Tips to Cut Your 2025 Taxes](https://cpatrucking.com/year-end-tax-planning-guide-tips-to-cut-your-2025-taxes/) - December doesn’t mean you’ve missed your chance to lower your tax bill. By acting before December 31, you can still take advantage of several year-end strategies to reduce your 2025 liability. Defer Income and Accelerate DeductionsPush Income Into 2026Delaying income until January can reduce your taxable income for 2025. For example: Ask your employer to - [Year-End Tax Checklist: 6 Ways Businesses Can Lower 2025 Taxes](https://cpatrucking.com/year-end-tax-checklist-6-ways-businesses-can-lower-2025-taxes/) - Year-End Tax Planning Made SimpleParagraph: While tax planning throughout the year delivers the best results, there are still valuable steps you can take in December to reduce your 2025 tax bill. Here are six practical strategies to consider before the year closes. 1. Delay InvoicingParagraph: If your business uses the cash method of accounting, deferring - [2025 FSA Rules, Limits, and Year-End Planning Tips](https://cpatrucking.com/2025-fsa-rules-limits-and-year-end-planning-tips/) - As the year comes to a close, it’s important to check whether you’ve used up your 2025 flexible spending account (FSA) funds. FSAs are a great way to save on taxes, but they typically require you to spend the money before year-end or risk losing it. Here’s a quick refresher on the rules, limits, and - [Buyer vs. Seller: Navigating Taxes in M&A Deals](https://cpatrucking.com/buyer-vs-seller-navigating-taxes-in-ma-deals/) - Whether you’re selling your business or acquiring another company, taxes can significantly influence the success of the transaction. Understanding the tax consequences before negotiating is essential to avoid costly surprises. Asset Sale vs. Stock Sale From a tax perspective, deals are typically structured as either asset sales or stock sales. Asset Sale In an asset - [Avoid the 2026 Tax Hit: Strategies for High-Income Filers](https://cpatrucking.com/avoid-the-2026-tax-hit-strategies-for-high-income-filers/) - Beginning in 2026, individuals in the highest federal income tax bracket will face a new cap on itemized deductions. If you anticipate falling into the 37% bracket, now is the time to take proactive steps to reduce your future tax burden. 🔍 Understanding the New Deduction Limitation 📜 A Brief History Before the Tax Cuts - [How the OBBBA Act Helps Manufacturers Save Big on Taxes](https://cpatrucking.com/how-the-obbba-act-helps-manufacturers-save-big-on-taxes/) - The One Big Beautiful Bill Act (OBBBA) introduces a powerful new tax incentive for manufacturers and similar businesses. Under this legislation, companies can claim 100% first-year depreciation on nonresidential real estate classified as Qualified Production Property (QPP)—a significant departure from the standard 39-year depreciation schedule. 🔍 What Is Qualified Production Property (QPP)? Understanding QPP requires navigating a few - [Shift Income and Save: Capital Gains Tax Planning for Families](https://cpatrucking.com/shift-income-and-save-capital-gains-tax-planning-for-families/) - Are you planning to make financial gifts to family members or loved ones? If you’re also looking to reduce your capital gains tax, consider gifting appreciated stock instead of cash. This strategy could eliminate or significantly reduce federal tax liability on the appreciation. 📉 Understanding Lower Capital Gains Rates Most investors pay a 15% tax - [Business Gift Deductions Explained: Avoid IRS Limits](https://cpatrucking.com/business-gift-deductions-explained-avoid-irs-limits/) - Thoughtful business gifts are a powerful way to express appreciation to clients, partners, and employees. When managed properly, they can also offer valuable tax deductions. However, the IRS generally limits business gift deductions to $25 per recipient per year — a threshold unchanged since 1962. With strategic planning and accurate documentation, you can still make the most - [FICA Tax Breakdown for 2026: What You’ll Owe](https://cpatrucking.com/fica-tax-breakdown-for-2026-what-youll-owe/) - The Social Security Administration has announced the 2026 wage base: $184,500, up from $176,100 in 2025. This change directly impacts how much payroll tax employees and self-employed individuals will owe. Here’s what you need to know. FICA Tax Overview The Federal Insurance Contributions Act (FICA) imposes two payroll taxes: Social Security tax (Old-Age, Survivors, and Disability Insurance) Medicare tax (Hospital Insurance) The - [Year-End Tax Planning for Accrual-Basis Taxpayers](https://cpatrucking.com/year-end-tax-planning-for-accrual-basis-taxpayers/) - Projecting your business income for both the current and upcoming year can help you strategically time income and deductible expenses. In general, deferring income and accelerating deductions is beneficial—unless you anticipate being in a higher tax bracket next year. While cash-basis taxpayers often find it easier to shift income and expenses, accrual-basis taxpayers have unique - [Maximize Your Health Savings: HDHP + HSA Explained](https://cpatrucking.com/maximize-your-health-savings-hdhp-hsa-explained/) - Health care costs continue to rise, prompting many to explore more cost-effective insurance options. One increasingly popular approach is combining a high-deductible health plan (HDHP) with a Health Savings Account (HSA). This pairing can lower your monthly premiums and offer significant tax advantages—both now and in the future. Why HSAs Offer Powerful Tax Benefits HSAs - [How the OBBBA Impacts Your Business Deductions for 2025](https://cpatrucking.com/how-the-obbba-impacts-your-business-deductions-for-2025/) - As 2025 winds down, now is the ideal time to assess your business expenses for potential tax deductions. Accelerating deductible costs into this year can reduce your 2025 tax liability—and in some cases, lead to permanent savings. It’s also crucial to understand how the One Big Beautiful Bill Act (OBBBA) affects your deductions, especially in - [Maximize Your 2025 Tax Savings with the Expanded SALT Deduction](https://cpatrucking.com/maximize-your-2025-tax-savings-with-the-expanded-salt-deduction/) - If you typically pay more than $10,000 in state and local taxes (SALT), the One Big Beautiful Bill Act (OBBBA) could significantly reduce your 2025 federal tax bill. But to take full advantage, you’ll need to understand the income-based limits and consider some strategic moves before year-end. What’s Changing: A Higher SALT Deduction Limit SALT - [QIP Depreciation in 2025: Immediate Write-Offs vs. Long-Term Gains](https://cpatrucking.com/qip-depreciation-strategy-2025/) - Introduction When it comes to commercial real estate, depreciation typically spans 39 years. However, certain interior improvements—known as Qualified Improvement Property (QIP)—can be depreciated faster or even fully deducted in the first year. While this accelerated depreciation sounds appealing, it may not always be the optimal tax strategy. What Is Qualified Improvement Property (QIP)? QIP refers - [How Donating Appreciated Stock Can Maximize Your 2025 Tax Savings](https://cpatrucking.com/how-donating-appreciated-stock-can-maximize-your-2025-tax-savings/) - Supporting charitable causes is often driven by passion, not tax strategy. But if you’re looking to make a meaningful impact while optimizing your tax return, donating long-term appreciated stock instead of cash can offer significant financial advantages. Why Stock Donations Offer More Than Just a Deduction When you donate publicly traded stock you’ve held for over - [Businesses Still Have Time to Claim Clean Energy Tax Incentives Before They Expire](https://cpatrucking.com/businesses-still-have-time-to-claim-clean-energy-tax-incentives-before-they-expire/) - The One Big Beautiful Bill Act (OBBBA), enacted on July 4, 2025, brings both opportunities and deadlines for businesses investing in clean energy. While the legislation extends or enhances several tax benefits, it also accelerates the expiration of key incentives—meaning businesses must act quickly to take full advantage. Qualified Commercial Clean Vehicle Credit (Section 45W) - [Maximize Your 2025 Senior Tax Deduction: Eligibility & Strategies](https://cpatrucking.com/maximize-your-2025-senior-tax-deduction-eligibility-strategies/) - Overview of the 2025 Senior Deduction Under the One Big Beautiful Bill Act (OBBBA), individuals aged 65 or older can claim a new senior deduction of up to $6,000 from 2025 to 2028. However, an income-based phaseout may reduce or eliminate this benefit for higher earners. Strategic year-end planning can help preserve this deduction by - [Streamline Business Travel in 2025–2026 with IRS High-Low Per Diem Rates](https://cpatrucking.com/streamline-business-travel-in-2025-2026-with-irs-high-low-per-diem-rates/) - Managing business travel expenses can be a logistical challenge for employers and employees alike. The IRS’s high-low per diem method offers a simplified, compliant alternative to tracking every receipt for meals, lodging, and incidentals. With the release of IRS Notice 2025-54, the updated per diem rates are now effective from October 1, 2025, through September 30, 2026, - [Top 5 Tax Breaks to Know Before Moving a Parent Into a Nursing Home](https://cpatrucking.com/financial-planning-for-aging-parents-in-california/) - Moving a parent into a nursing home is a major life transition—and while taxes may not be top of mind, understanding the potential tax benefits can help ease the financial burden. According to the National Center for Health Statistics, approximately 1.3 million Americans live in nursing homes. Here are five key tax breaks you should - [Tax Risks of Personally Guaranteeing a Business Loan: What Owners of Closely Held Corporations Must Know](https://cpatrucking.com/what-qualifies-as-a-business-bad-debt-deduction/) - If you’re an owner, officer, or key employee of a closely held corporation, you may be asked to personally guarantee a business loan. Before signing, it’s essential to understand the potential tax consequences. Acting as a guarantor, endorser, or indemnitor means that if your corporation defaults, you could be personally responsible for repaying the debt — - [Boost Your Retirement Wealth After 50 with Strategic Catch-Up Contributions](https://cpatrucking.com/boost-your-retirement-wealth-after-50-with-strategic-catch-up-contributions/) - Supercharge Your Retirement Savings After Age 50 If you’re age 50 or older, you have a powerful opportunity to accelerate your retirement savings through catch-up contributions to your tax-advantaged retirement accounts. These extra contributions can significantly increase your retirement wealth. IRA Contribution Limits for 2025 · You can contribute up to $7,000 or 100% of earned income, whichever is less, to - [Receiving $10,000 or More in Cash at Your Business? Here’s What the IRS Requires](https://cpatrucking.com/receiving-10000-or-more-in-cash-at-your-business-heres-what-the-irs-requires/) - If your business accepts large cash payments, the IRS requires you to report them — and not just on your tax return. Failing to comply can lead to costly penalties. Here’s what you need to know about IRS Form 8300 reporting requirements. Who Must Report Cash Payments Over $10,000? Under federal law, any person or business - [2025 Tax Breaks on Tips and Overtime: Federal Income and Payroll Tax Guide](https://cpatrucking.com/2025-tax-breaks-on-tips-and-overtime-federal-income-and-payroll-tax-guide/) - The One Big Beautiful Bill Act (OBBBA), effective July 4, 2025, introduces temporary federal income tax deductions for qualified tip and overtime income from 2025 to 2028. Marketed as “no tax on tips” or “no tax on overtime,” these are limited deductions, not full exemptions, with specific payroll tax implications. This guide details eligibility, reporting - [Tax Tips for Married Couples Running a Small Business Together](https://cpatrucking.com/tax-tips-for-married-couples-running-a-small-business-together/) - If you and your spouse run a profitable unincorporated small business together, you may face some tricky tax rules. Understanding how the IRS classifies your business — and planning ahead — can save you money and headaches. Why the IRS Sees You as a Partnership By default, an unincorporated business jointly owned and operated by - [Maximize Your Educator Tax Deductions in 2025 and Beyond: What Teachers, Coaches, and School Staff Need to Know](https://cpatrucking.com/maximize-your-educator-tax-deductions-in-2025/) - As students return to school, parents often focus on buying supplies, clothes, and backpacks. But behind the scenes, educators are also spending their own money on classroom essentials—often without reimbursement. Fortunately, the IRS allows eligible educators to deduct certain out-of-pocket expenses. And starting in 2026, the One Big Beautiful Bill Act (OBBBA) introduces a new opportunity to - [Expanded Tax Benefits for Investors: Why Qualified Small Business Stock Is a Smart Move in 2025](https://cpatrucking.com/investing-in-qsbs-tax-breaks/) - Investing in Qualified Small Business (QSB) stock is now more attractive than ever thanks to expanded tax benefits introduced by the One Big Beautiful Bill Act (OBBBA), signed into law in July 2025. This legislation enhances the tax-saving opportunities available to investors who purchase stock in eligible small businesses. What Is Qualified Small Business (QSB) Stock? QSB stock - [Divorce and Business Ownership: What You Need to Know](https://cpatrucking.com/divorce-and-business-ownership-what-you-need-to-know/) - Divorce is difficult for anyone, but for business owners, it introduces unique financial and legal challenges. Your business may be one of your most valuable personal assets—and often, it’s considered marital property under California community property laws. Understanding the tax implications of divorce is essential to avoid costly surprises and protect your financial future. Tax-Free Transfers During Divorce: How - [Upcoming Estimated Tax Deadline: What You Need to Know About the September 15 Payment and the New OBBBA Tax Law](https://cpatrucking.com/upcoming-estimated-tax-deadline-what-you-need-to-know-about-the-september-15-payment-and-the-new-obbba-tax-law/) - If you make quarterly estimated tax payments, mark your calendar: the third installment for 2025 is due Monday, September 15. This year’s payments may be impacted by the newly enacted One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, which introduces several tax deductions, credits, and provisions that could affect your liability. Understanding Estimated - [How Trucking Owner-Operators Can Cut Self-Employment Taxes by Electing S Corporation Status in 2025](https://cpatrucking.com/how-trucking-owner-operators-can-cut-self-employment-taxes-by-electing-s-corporation-status-in-2025/) - If you're a trucking owner-operator running your business as a sole proprietor or single-member LLC, you're likely paying steep self-employment (SE) taxes. With fuel costs, maintenance, and insurance already eating into your margins, converting your business to an S corporation could be a smart way to reduce your tax burden and increase your net income. Why Trucking - [New Tax Law 2025: Can You Deduct Car Loan Interest?](https://cpatrucking.com/new-tax-law-2025-can-you-deduct-car-loan-interest/) - Most car buyers in the U.S. rely on financing, and many are asking the same question: “Is car loan interest tax-deductible under the new law?” The answer is sometimes—but not for everyone. The One Big Beautiful Bill Act (OBBBA) creates a brand-new deduction for certain auto loans starting in 2025. While some reports suggest there’s “no tax on car loan interest,” - [Tax-Smart Business Structuring: Make Your Entity Work for You](https://cpatrucking.com/tax-smart-business-structuring-make-your-entity-work-for-you/) - Choosing the appropriate business entity is one of the most impactful decisions entrepreneurs face when starting or restructuring a business. This decision affects how the business is taxed, the complexity of administrative tasks, and regulatory compliance obligations. While legal liability is also a key factor, this guide focuses specifically on tax considerations. For liability-related advice, - [Act Soon: OBBBA Cuts Clean Energy Tax Credits in 2025](https://cpatrucking.com/act-soon-obbba-cuts-clean-energy-tax-credits-in-2025/) - The One, Big, Beautiful Bill Act (OBBBA) is reshaping U.S. clean energy tax policy. Passed by President Trump and congressional Republicans, the law rolls back several popular green energy tax breaks that were expanded under the Inflation Reduction Act (IRA). If you’re planning to buy an electric vehicle (EV), make home energy upgrades, or install solar panels and other renewable systems, you’ll want to - [IRS Reporting Thresholds Raised Under OBBBA: What Businesses Need to Know](https://cpatrucking.com/irs-reporting-thresholds-raised-under-obbba-what-businesses-need-to-know/) - The One, Big Beautiful Bill Act (OBBBA) introduces a significant modernization to IRS reporting rules. Starting with payments made in 2026, the threshold for reporting certain business payments will increase from $600 to $2,000. From 2027 onward, this threshold will be adjusted annually for inflation. Current IRS Reporting Rules For decades, businesses have been required to file Form 1099-NEC (formerly 1099-MISC) for - [Understanding the Alternative Minimum Tax After the Latest Tax Reform](https://cpatrucking.com/understanding-the-alternative-minimum-tax-after-the-latest-tax-reform/) - The Alternative Minimum Tax (AMT) is a separate federal income-tax system designed to ensure that higher-income individuals pay at least a minimum amount of tax. Unlike the regular tax system, the AMT disallows certain deductions and treats some tax-exempt income as taxable. If your AMT liability exceeds your regular income tax, you must pay the higher AMT - [Demystifying the QBI Deduction and Updates from the One, Big, Beautiful Bill Act (OBBBA)](https://cpatrucking.com/demystifying-the-qbi-deduction-and-updates-from-the-one-big-beautiful-bill-act-obbba/) - The Qualified Business Income (QBI) deduction, introduced in 2018, remains a powerful tax-saving opportunity for eligible business owners. It allows a deduction of up to 20% of qualified business income, capped at 20% of total taxable income. This benefit also extends to 20% of qualified REIT dividends. Key Legislative Update: Permanency via the OBBBA The One, Big, Beautiful Bill Act - [What families need to know about the new tax law](https://cpatrucking.com/what-families-need-to-know-about-the-new-tax-law/) - The One, Big, Beautiful Bill Act (OBBBA) has introduced significant tax changes that could affect families across the country. While many of the provisions aim to provide financial relief, the new rules can be complex. Below is an overview of the key changes. Adoption credit enhanced Parents who adopt may be eligible for more generous - [The new law includes favorable changes for depreciating eligible assets](https://cpatrucking.com/the-new-law-includes-favorable-changes-for-depreciating-eligible-assets/) - The One Big Beautiful Bill Act (OBBBA) includes a number of beneficial changes that will help small business taxpayers. Perhaps the biggest and best changes are liberalized rules for depreciating business assets. Here’s what you need to know. 100% bonus depreciation is back The new law permanently restores 100% first-year depreciation for eligible assets acquired - [What the new tax law could mean for you](https://cpatrucking.com/what-the-new-tax-law-could-mean-for-you/) - As 2025 began, individual taxpayers faced uncertainty with several key provisions of the tax law that were set to expire at the end of the year. That changed on July 4, when President Trump signed the One, Big, Beautiful Bill Act (OBBBA) into law. The OBBBA not only makes many TCJA provisions permanent but also - [Significant business tax provisions in the One, Big, Beautiful Bill Act](https://cpatrucking.com/significant-business-tax-provisions-in-the-one-big-beautiful-bill-act/) - The One, Big, Beautiful Bill Act (OBBBA) was signed into law on July 4. The new law includes a number of favorable changes that will affect small business taxpayers, and some unfavorable changes too. Here’s a quick summary of some of the most important provisions. First-year bonus depreciation The OBBBA permanently restores the 100% first-year - [Understanding spousal IRAs: A smart retirement strategy for couples](https://cpatrucking.com/understanding-spousal-iras-a-smart-retirement-strategy-for-couples/) - Retirement planning is essential for all families, but it can be especially critical for couples where one spouse earns little to no income. In such cases, a spousal IRA can be an effective and often overlooked tool to help build retirement savings for both partners — even if only one spouse is employed. It’s worth - [Tap into the 20% rehabilitation tax credit for business space improvements](https://cpatrucking.com/tap-into-the-20-rehabilitation-tax-credit-for-business-space-improvements/) - If your business occupies a large space and you’re planning to relocate, expand or renovate in the future, consider the potential benefits of the rehabilitation tax credit. This could be particularly valuable if you’re interested in historic properties. The credit is equal to 20% of the qualified rehabilitation expenditures (QREs) for a qualified rehabilitated building - [Milestone moments: How age affects certain tax provisions](https://cpatrucking.com/milestone-moments-how-age-affects-certain-tax-provisions/) - They say age is just a number — but in the world of tax law, it’s much more than that. As you move through your life, the IRS treats you differently because key tax rules kick in at specific ages. Here are some important age-related tax milestones for you and loved ones to keep in - [Startup costs and taxes: What you need to know before filing](https://cpatrucking.com/startup-costs-and-taxes-what-you-need-to-know-before-filing/) - The U.S. Census Bureau reports there were nearly 447,000 new business applications in May of 2025. The bureau measures this by tracking the number of businesses applying for an Employer Identification Number. If you’re one of the entrepreneurs, you may not know that many of the expenses incurred by start-ups can’t currently be deducted on - [Is college financial aid taxable? A crash course for families](https://cpatrucking.com/is-college-financial-aid-taxable-a-crash-course-for-families/) - College can be expensive. According to the College Board, the average sticker price for tuition and fees at private colleges was $43,350 for the 2024–2025 school year. The average cost for tuition and fees for out-of-state students at public colleges was $30,780. For in-state students, the cost was $11,610. Of course, there are additional costs - [DOs and DON’Ts to help protect your business expense deductions](https://cpatrucking.com/dos-and-donts-to-help-protect-your-business-expense-deductions/) - If you’re claiming deductions for business meals or vehicle expenses, expect the IRS to closely review them. In some cases, taxpayers have incomplete documentation or try to create records months (or years) later. In doing so, they fail to meet the strict substantiation requirements set forth under tax law. Tax auditors are adept at rooting - [Are you missing a valuable tax deduction for Medicare premiums?](https://cpatrucking.com/are-you-missing-a-valuable-tax-deduction-for-medicare-premiums/) - If you’re age 65 or older and enrolled in basic Medicare insurance, you may need to pay additional premiums to receive more comprehensive coverage. These extra premiums can be expensive, particularly for married couples, since both spouses incur the costs. However, there may be a silver lining: You could be eligible for a tax deduction - [The One, Big, Beautiful Bill could change the deductibility of R&E expenses](https://cpatrucking.com/the-one-big-beautiful-bill-could-change-the-deductibility-of-re-expenses/) - The treatment of research and experimental (R&E) expenses is a high-stakes topic for U.S. businesses, especially small to midsize companies focused on innovation. As the tax code currently stands, the deductibility of these expenses is limited, leading to financial strain for companies that used to be able to expense them immediately. But proposed legislation dubbed - [Tax breaks in 2025 and how The One, Big, Beautiful Bill could change them](https://cpatrucking.com/tax-breaks-in-2025-and-how-the-one-big-beautiful-bill-could-change-them/) - The U.S. House of Representatives passed The One, Big, Beautiful Bill Act on May 22, 2025, introducing possible significant changes to individual tax provisions. While the bill is now being considered by the Senate, it’s important to understand how the proposals could alter key tax breaks. Curious about how the bill might affect you? Here - [5 tax breaks on the table: What business owners should know about the latest proposals](https://cpatrucking.com/5-tax-breaks-on-the-table-what-business-owners-should-know-about-the-latest-proposals/) - A bill in Congress — dubbed The One, Big, Beautiful Bill — could significantly reshape several federal business tax breaks. While the proposed legislation is still under debate, it’s already sparking attention across business communities. Here’s a look at the current rules and proposed changes for five key tax provisions and what they could mean - [The advantages of a living trust for your estate plan](https://cpatrucking.com/the-advantages-of-a-living-trust-for-your-estate-plan/) - Do you believe you don’t need to worry about estate planning because of the current federal estate tax exemption ($13.99 million per individual or $27.98 million for married couples in 2025)? Well, think again. Even with this substantial exemption, creating a living trust can offer significant benefits, especially if your goal is to avoid probate - [Planning a summer business trip? Turn travel into tax deductions](https://cpatrucking.com/planning-a-summer-business-trip-turn-travel-into-tax-deductions/) - If you or your employees are heading out of town for business this summer, it’s important to understand what travel expenses can be deducted under current tax law. To qualify, the travel must be necessary for your business and require an overnight stay within the United States. Note: Under the Tax Cuts and Jobs Act, - [Digital assets and taxes: What you need to know](https://cpatrucking.com/digital-assets-and-taxes-what-you-need-to-know/) - As the use of digital assets like cryptocurrencies continues to grow, so does the IRS’s scrutiny of how taxpayers report these transactions on their federal income tax returns. The IRS has flagged this area as a key focus. To help you stay compliant and avoid tax-related complications, here are the basics of digital asset reporting. - [The IRS recently announced 2026 amounts for Health Savings Accounts](https://cpatrucking.com/the-irs-recently-announced-2026-amounts-for-health-savings-accounts/) - The IRS recently released the 2026 inflation-adjusted amounts for Health Savings Accounts (HSAs). Employees will be able to save a modest amount more in their HSAs next year. HSA basics An HSA is a trust created or organized exclusively for the purpose of paying the “qualified medical expenses” of an “account beneficiary.” An HSA can - [How working in the gig economy affects your taxes](https://cpatrucking.com/how-working-in-the-gig-economy-affects-your-taxes/) - The gig economy offers flexibility, autonomy and a way to earn income, but it also comes with tax obligations that can catch many workers off guard. Whether you’re driving for a rideshare service, delivering food, selling products online or offering local services like pet walking, it’s crucial to understand the tax implications of gig work - [Hiring independent contractors? Make sure you’re doing it right](https://cpatrucking.com/hiring-independent-contractors-make-sure-youre-doing-it-right/) - Many businesses turn to independent contractors to help manage costs, especially during times of staffing shortages and inflation. If you’re among them, ensuring these workers are properly classified for federal tax purposes is crucial. Misclassifying employees as independent contractors can result in expensive consequences if the IRS steps in and reclassifies them. It could lead - [The tax rules for legal awards and settlements: What recipients should know](https://cpatrucking.com/the-tax-rules-for-legal-awards-and-settlements-what-recipients-should-know/) - If you’ve recently received a settlement or award from a lawsuit, or you’re expecting one, you may be wondering how the IRS views this money. Will you need to pay taxes on it? The short answer: It depends on the type of damages you received. Understanding the basic rules can help you avoid surprises. Taxable - [Can you turn business losses into tax relief?](https://cpatrucking.com/can-you-turn-business-losses-into-tax-relief/) - Even well-run companies experience down years. The federal tax code may allow a bright strategy to lighten the impact. Certain losses, within limits, may be used to reduce taxable income in later years. Who qualifies? The net operating loss (NOL) deduction levels the playing field between businesses with steady income and those with income that - [Still have tax questions? You’re not alone](https://cpatrucking.com/still-have-tax-questions-youre-not-alone/) - Even after your 2024 federal return is submitted, a few nagging questions often remain. Below are quick answers to five of the most common questions we hear each spring. 1.When will my refund show up? Use the IRS’s “Where’s My Refund?” tracker at IRS.gov. Have these three details ready: Social Security number, Filing status, and Exact - [Corporate business owners: Is your salary reasonable in the eyes of the IRS?](https://cpatrucking.com/corporate-business-owners-is-your-salary-reasonable-in-the-eyes-of-the-irs/) - Determining “reasonable compensation” is a critical issue for owners of C corporations and S corporations. If the IRS believes an owner’s compensation is unreasonably high or low, it may disallow certain deductions or reclassify payments, potentially leading to penalties, back taxes and interest. But by proactively following certain steps, owners can help ensure their compensation is seen - [The “wash sale” rule: Don’t let losses circle the drain](https://cpatrucking.com/the-wash-sale-rule-dont-let-losses-circle-the-drain/) - Stock, mutual fund and ETF prices have bounced around lately. If you make what turns out to be an ill-fated investment in a taxable brokerage firm account, the good news is that you may be able to harvest a tax-saving capital loss by selling the loser security. However, for federal income tax purposes, the wash - [An education plan can pay off for your employees — and your business](https://cpatrucking.com/an-education-plan-can-pay-off-for-your-employees-and-your-business/) - Your business can set up an educational assistance plan that can give each eligible employee up to $5,250 in annual federal-income-tax-free and federal-payroll-tax-free benefits. These tax-favored plans are called Section 127 plans after the tax code section that allows them. Plan basics Sec. 127 plans can cover the cost of almost anything that constitutes education, including - [Understanding the “step-up in basis” when inheriting assets](https://cpatrucking.com/understanding-the-step-up-in-basis-when-inheriting-assets/) - If you inherit assets after a loved one passes away, they often arrive with a valuable — but frequently misunderstood — tax benefit called the step-up in basis. Below is an overview of how the rule works and what planning might need to be done. What “basis” means First, let’s look at a couple definitions. Basis is - [Explore SEP and SIMPLE retirement plans for your small business](https://cpatrucking.com/explore-sep-and-simple-retirement-plans-for-your-small-business/) - Suppose you’re thinking about setting up a retirement plan for yourself and your employees. However, you’re concerned about the financial commitment and administrative burdens involved. There are a couple of options to consider. Let’s take a look at a Simplified Employee Pension (SEP) and a Savings Incentive Match Plan for Employees (SIMPLE). SEPs offer easy - [What tax documents can you safely shred? And which ones should you keep?](https://cpatrucking.com/what-tax-documents-can-you-safely-shred-and-which-ones-should-you-keep/) - Once your 2024 tax return is in the hands of the IRS, you may be tempted to clear out file cabinets and delete digital folders. But before reaching for the shredder or delete button, remember that some paperwork still has two important purposes: Protecting you if the IRS comes calling for an audit, and Helping - [Turn a summer job into tax savings: Hire your child and reap the rewards](https://cpatrucking.com/turn-a-summer-job-into-tax-savings-hire-your-child-and-reap-the-rewards/) - With summer fast approaching, you might be considering hiring young people at your small business. If your children are also looking to earn some extra money, why not put them on the payroll? This move can help you save on family income and payroll taxes, making it a win-win situation for everyone! Here are three - [An essential tax deadline is coming up — and it’s unrelated to your 2024 return filing](https://cpatrucking.com/an-essential-tax-deadline-is-coming-up-and-its-unrelated-to-your-2024-return-filing/) - Tuesday, April 15 is the deadline for filing your 2024 tax return. But another tax deadline is coming up the same day, and it’s essential for certain taxpayers. It’s the deadline for making the first quarterly estimated tax payment for 2025 if you’re required to make one. Basic details You may have to make estimated - [Small business alert: Watch out for the 100% penalty](https://cpatrucking.com/small-business-alert-watch-out-for-the-100-penalty/) - Some tax sins are much worse than others. An example is failing to pay over federal income and employment taxes that have been withheld from employees’ paychecks. In this situation, the IRS can assess the trust fund recovery penalty, also called the 100% penalty, against any responsible person. It’s called the 100% penalty because the entire - [Discover if you qualify for “head of household” tax filing status](https://cpatrucking.com/discover-if-you-qualify-for-head-of-household-tax-filing-status/) - When we prepare your tax return, we’ll check one of the following filing statuses: single, married filing jointly, married filing separately, head of household or qualifying widow(er). Only some people are eligible to file a return as a head of household. But if you’re one of them, it’s more favorable than filing as a single - [Are you a tax-favored real estate professional?](https://cpatrucking.com/are-you-a-tax-favored-real-estate-professional/) - For federal income tax purposes, the general rule is that rental real estate losses are passive activity losses (PALs). An individual taxpayer can generally deduct PALs only to the extent of passive income from other sources, if any. For example, if you have positive taxable income from other rental properties, that generally counts as passive - [Deduct a loss from making a personal loan to a relative or friend](https://cpatrucking.com/deduct-a-loss-from-making-a-personal-loan-to-a-relative-or-friend/) - Suppose your adult child or friend needs to borrow money. Maybe it’s to buy a first home or address a cash flow problem. You may want to help by making a personal loan. That’s a nice thought, but there are tax implications that you should understand and take into account. Get it in writing You - [6 essential tips for small business payroll tax compliance](https://cpatrucking.com/6-essential-tips-for-small-business-payroll-tax-compliance/) - Staying compliant with payroll tax laws is crucial for small businesses. Mistakes can lead to fines, strained employee relationships and even legal consequences. Below are six quick tips to help you stay on track. 1. Maintain organized records Accurate recordkeeping is the backbone of payroll tax compliance. Track the hours worked, wages paid and all - [Turning stock downturns into tax advantages](https://cpatrucking.com/turning-stock-downturns-into-tax-advantages/) - Have you ever invested in a company only to see its stock value plummet? (This may become relevant in light of recent market volatility.) While such an investment might be something you’d rather forget, there’s a silver lining: you can claim a capital loss deduction on your tax return. Here are the rules when a - [Planning for the future: 5 business succession options and their tax implications](https://cpatrucking.com/planning-for-the-future-5-business-succession-options-and-their-tax-implications/) - When it’s time to consider your business’s future, succession planning can protect your legacy and successfully set up the next generation of leaders or owners. Whether you’re ready to retire, you wish to step back your involvement or you want a solid contingency plan should you unexpectedly be unable to run the business, exploring different - [Riding the tax break train: Maximizing employee transportation fringe benefits](https://cpatrucking.com/riding-the-tax-break-train-maximizing-employee-transportation-fringe-benefits/) - There are some nice tax breaks for transportation-related employee fringe benefits. If your employer offers these tax-favored fringes, you should probably take advantage of them by signing up. Here’s a quick summary of the current federal tax treatment of transportation-related benefits. Mass transit passes For 2025, employer-provided mass transit passes for train, subway and bus - [Exploring business entities: Is an S corporation the right choice?](https://cpatrucking.com/exploring-business-entities-is-an-s-corporation-the-right-choice/) - Are you starting a business with partners and deciding on the right entity? An S corporation might be the best choice for your new venture. One benefit of an S corporation One major advantage of an S corporation over a partnership is that shareholders aren’t personally liable for corporate debts. To ensure this protection, it’s crucial to: Adequately - [The 2024 gift tax return deadline is coming up soon](https://cpatrucking.com/the-2024-gift-tax-return-deadline-is-coming-up-soon/) - If you made significant gifts to your children, grandchildren or other heirs last year, it’s important to determine whether you’re required to file a 2024 gift tax return. And in some cases, even if it’s not required to file one, you may want to do so anyway. Requirements to file The annual gift tax exclusion - [Ways to manage the limit on the business interest expense deduction](https://cpatrucking.com/ways-to-manage-the-limit-on-the-business-interest-expense-deduction/) - Prior to the enactment of the Tax Cuts and Jobs Act (TCJA), businesses were able to claim a tax deduction for most business-related interest expense. The TCJA created Section 163(j), which generally limits deductions of business interest, with certain exceptions. If your business has significant interest expense, it’s important to understand the impact of the - [Can I itemize deductions on my tax return?](https://cpatrucking.com/can-i-itemize-deductions-on-my-tax-return/) - You may wonder if you can claim itemized deductions on your tax return. Perhaps you made charitable contributions and were told in the past they couldn’t be claimed because you didn’t have enough deductions to itemize. How much do you need? You can itemize deductions if the total of your allowable itemized write-offs for the - [How a business owner’s home office can result in tax deductions](https://cpatrucking.com/how-a-business-owners-home-office-can-result-in-tax-deductions/) - As a business owner, you may be eligible to claim home office tax deductions that will reduce your taxable income. However, it’s crucial to understand the IRS rules to ensure compliance and avoid potential IRS audit risks. There are two methods for claiming this tax break: the actual expense method and the simplified method. Here - [You may be able to make a deductible IRA contribution for last year this year](https://cpatrucking.com/you-may-be-able-to-make-a-deductible-ira-contribution-for-last-year-this-year/) - If you’re getting ready to file your 2024 tax return and your tax bill is higher than you’d like, there may still be a chance to lower it. If you’re eligible, you can make a deductible contribution to a traditional IRA until this year’s April 15 filing deadline and benefit from the tax savings on - [Do you have an excess business loss?](https://cpatrucking.com/do-you-have-an-excess-business-loss/) - If an individual taxpayer has substantial business losses, unfavorable federal income tax rules can potentially come into play. Here’s what you need to know as you assess your 2024 tax situation. Disallowance rule The tax rules can get complicated if your business or rental activity throws off a tax loss — and many do during - [Financial relief for families:The benefits of the Child Tax Credit](https://cpatrucking.com/financial-relief-for-familiesthe-benefits-of-the-child-tax-credit/) - The Child Tax Credit (CTC) has long been a valuable tax break for families with qualifying children. Whether you’re new to claiming the credit or you’ve benefited from it for years, it’s crucial to stay current on its rules and potential changes. As we approach the expiration of certain provisions within the Tax Cuts and - [Questions about taxes and tips? Here are some answers for employers](https://cpatrucking.com/questions-about-taxes-and-tips-here-are-some-answers-for-employers/) - Businesses in certain industries employ service workers who receive tips as a large part of their compensation. These businesses include restaurants, hotels and salons. Compliance with federal and state tax regulations is vital if your business has employees who receive tips. Are tips becoming tax-free? During the campaign, President Trump promised to end taxes on - [Taming the tax tangle if you’re retiring soon](https://cpatrucking.com/taming-the-tax-tangle-if-youre-retiring-soon/) - Retirement is often viewed as an opportunity to travel, spend time with family or simply enjoy the fruits of a long career. Yet the transition may bring a tangle of tax considerations. Planning carefully can help you minimize tax bills. Below are four steps to take if you’re approaching retirement, along with the tax implications. - [Many business tax limits have increased in 2025](https://cpatrucking.com/many-business-tax-limits-have-increased-in-2025/) - A variety of tax-related limits that affect businesses are indexed annually based on inflation. Many have increased for 2025, but with inflation cooling, the increases aren’t as great as they have been in the last few years. Here are some amounts that may affect you and your business. 2025 deductions as compared with 2024 Section - [Looking ahead to 2025 tax limits as you prepare to file your 2024 return](https://cpatrucking.com/looking-ahead-to-2025-tax-limits-as-you-prepare-to-file-your-2024-return/) - Chances are, you’re more concerned about your 2024 tax return right now than you are about your 2025 tax situation. That’s understandable because your 2024 individual tax return is due to be filed by April 15 (unless you file for an extension). However, it’s a good time to familiarize yourself with tax amounts that may - [Businesses: The Form W-2 and 1099-NEC deadline is coming up fast](https://cpatrucking.com/businesses-the-form-w-2-and-1099-nec-deadline-is-coming-up-fast/) - With the 2025 tax filing season underway, be aware that the deadline is coming up fast for businesses to submit certain information returns to the federal government and furnish them to workers. By January 31, 2025, employers must file these forms and furnish them to recipients: Form W-2, Wage and Tax Statement. Form W-2 shows the wages - [Early bird tips: Answering your tax season questions](https://cpatrucking.com/early-bird-tips-answering-your-tax-season-questions/) - The IRS announced it will start the 2025 filing season for individual income tax returns on January 27. That’s when the agency began accepting and processing 2024 tax year returns. Even if you typically don’t file until much closer to the mid-April deadline (or you file for an extension), you may want to file earlier - [The standard business mileage rate increased in 2025](https://cpatrucking.com/the-standard-business-mileage-rate-increased-in-2025/) - The nationwide price of gas is slightly higher than it was a year ago and the 2025 optional standard mileage rate used to calculate the deductible cost of operating an automobile for business has also gone up. The IRS recently announced that the 2025 cents-per-mile rate for the business use of a car, van, pickup - [Do you have questions about taking IRA withdrawals? We’ve got answers ](https://cpatrucking.com/do-you-have-questions-about-taking-ira-withdrawals-weve-got-answers/) - Once you reach age 73, tax law requires you to begin taking withdrawals — called Required Minimum Distributions (RMDs) — from your traditional IRA, SIMPLE IRA and SEP IRA. Since funds can’t stay in these accounts indefinitely, it’s important to understand the rules behind RMDs, which can be pretty complex. Below, we address some common - [Small business strategy: A heavy vehicle plus a home office equals tax savings](https://cpatrucking.com/small-business-strategy-a-heavy-vehicle-plus-a-home-office-equals-tax-savings/) - New and used “heavy” SUVs, pickups and vans placed in service in 2025 are potentially eligible for big first-year depreciation write-offs. One requirement is you must use the vehicle more than 50% for business. If your business usage is between 51% and 99%, you may be able to deduct that percentage of the cost in - [Saving for college: Tax breaks and strategies your family should know ](https://cpatrucking.com/saving-for-college-tax-breaks-and-strategies-your-family-should-know/) - As higher education costs continue to rise, you may be concerned about how to save and pay for college. Fortunately, several tools and strategies offered in the U.S. tax code may help ease the financial burden. Below is an overview of some of the most beneficial tax breaks and planning options for funding your child’s - [How Section 1231 gains and losses affect business asset sales](https://cpatrucking.com/how-section-1231-gains-and-losses-affect-business-asset-sales/) - When selling business assets, understanding the tax implications is crucial. One area to focus on is Section 1231 of the Internal Revenue Code, which governs the treatment of gains and losses from the sale or exchange of certain business property. Business gain and loss tax basics The federal income tax character of gains and losses - [Maximize your 401(k) in 2025: Smart strategies for a secure retirement ](https://cpatrucking.com/maximize-your-401k-in-2025-smart-strategies-for-a-secure-retirement/) - Saving for retirement is a crucial financial goal and a 401(k) plan is one of the most effective tools for achieving it. If your employer offers a 401(k) or Roth 401(k), contributing as much as possible to the plan in 2025 is a smart way to build a considerable nest egg. If you’re not already - [Understanding the Work Opportunity Tax Credit](https://cpatrucking.com/understanding-the-work-opportunity-tax-credit/) - According to the U.S. Bureau of Labor Statistics, the unemployment rate continues to be historically low, ranging from 4.0% to 4.3% from May to November of 2024. With today’s hiring challenges, business owners should be aware that the Work Opportunity Tax Credit (WOTC) is available to employers that hire workers from targeted groups who face - [Savings bonds and taxes: What you need to know](https://cpatrucking.com/savings-bonds-and-taxes-what-you-need-to-know/) - When considering the advantages of U.S. Treasury savings bonds, you may appreciate their relative safety, simplicity and government backing. However, like all interest-bearing investments, savings bonds come with tax implications that are important to understand. Deferred interest Series EE Bonds dated May 2005 and after earn a fixed rate of interest. Bonds purchased between May - [Operating as a C corporation: Weigh the benefits and drawbacks](https://cpatrucking.com/operating-as-a-c-corporation-weigh-the-benefits-and-drawbacks/) - When deciding on the best structure for your business, one option to consider is a C corporation. This entity offers several advantages and disadvantages that may significantly affect your business operations and financial health. Here’s a detailed look at the pros and cons of operating as a C corporation. Tax implications A C corporation allows the - [Adoption tax credits: Easing the financial journey of parenthood ](https://cpatrucking.com/adoption-tax-credits-easing-the-financial-journey-of-parenthood/) - There are two tax breaks that help eligible parents offset the expenses of adopting a child. In 2025, adoptive parents may be able to claim a credit against their federal tax for up to $17,280 of “qualified adoption expenses” for each child. This is up from $16,810 in 2024. A tax credit is a dollar-for-dollar - [The tax treatment of intangible assets](https://cpatrucking.com/the-tax-treatment-of-intangible-assets/) - Intangible assets, such as patents, trademarks, copyrights and goodwill, play a crucial role in today’s businesses. The tax treatment of these assets can be complex, but businesses need to understand the issues involved. Here are some answers to frequently asked questions. What are intangible assets? The term “intangibles” covers many items. Determining whether an acquired - [Your guide to Medicare premiums and taxes ](https://cpatrucking.com/your-guide-to-medicare-premiums-and-taxes/) - Medicare health insurance premiums can add up to big bucks — especially if you’re upper-income, married, and you and your spouse both pay premiums. Read on to understand how taxes fit in. Premiums for Part B coverage Medicare Part B coverage is commonly called Medicare medical insurance. Part B mainly covers doctors’ visits and outpatient - [Drive down your business taxes with local transportation cost deductions](https://cpatrucking.com/drive-down-your-business-taxes-with-local-transportation-cost-deductions/) - Understanding how to deduct transportation costs could significantly reduce the tax burden on your small business. You and your employees likely incur various local transportation expenses each year, and they have tax implications. Let’s start by defining “local transportation.” It refers to travel when you aren’t away from your tax home long enough to require - [Senior tax-saving alert: Make charitable donations from your IRA ](https://cpatrucking.com/senior-tax-saving-alert-make-charitable-donations-from-your-ira/) - If you’ve reached age 70½, you can make cash donations directly from your IRA to IRS-approved charities. These qualified charitable distributions (QCDs) may help you gain tax advantages. QCD basics QCDs can be made from your traditional IRA(s) free of federal income tax. In contrast, other traditional IRA distributions are wholly or partially taxable, depending - [Healthy savings: How tax-smart HSAs can benefit your small business and employees](https://cpatrucking.com/healthy-savings-how-tax-smart-hsas-can-benefit-your-small-business-and-employees/) - As a small business owner, managing health care costs for yourself and your employees can be challenging. One effective tool to consider adding is a Health Savings Account (HSA). HSAs offer a range of benefits that can help you save on health care expenses while providing valuable tax advantages. You may already have an HSA. - [How inflation will affect your 2024 and 2025 tax bills](https://cpatrucking.com/how-inflation-will-affect-your-2024-and-2025-tax-bills/) - Inflation can have a significant impact on federal tax breaks. While recent inflation has come down since its peak in 2022, some tax amounts will still increase for 2025. The IRS recently announced next year’s inflation-adjusted amounts for several provisions. Here are the highlights. Standard deduction. What does an increased standard deduction mean for you? A - [When can you deduct business meals and entertainment?](https://cpatrucking.com/when-can-you-deduct-business-meals-and-entertainment/) - You’re not alone if you’re confused about the federal tax treatment of business-related meal and entertainment expenses. The rules have changed in recent years. Let’s take a look at what you can deduct in 2024. Current law The Tax Cuts and Jobs Act eliminated deductions for most business-related entertainment expenses. That means, for example, that - [Get tax breaks for energy-saving purchases this year because they may disappear](https://cpatrucking.com/get-tax-breaks-for-energy-saving-purchases-this-year-because-they-may-disappear/) - The Inflation Reduction Act (IRA), enacted in 2022, created several tax credits aimed at promoting clean energy. You may want to take advantage of them before it’s too late. On the campaign trail, President-Elect Donald Trump pledged to “terminate” the law and “rescind all unspent funds.” Rescinding all or part of the law would require action - [Self-employment tax: A refresher on how it works](https://cpatrucking.com/self-employment-tax-a-refresher-on-how-it-works/) - If you own a growing, unincorporated small business, you may be concerned about high self-employment (SE) tax bills. The SE tax is how Social Security and Medicare taxes are collected from self-employed individuals like you. SE tax basics The maximum 15.3% SE tax rate hits the first $168,600 of your 2024 net SE income. The - [Unlocking the mystery of taxes on employer-issued nonqualified stock options](https://cpatrucking.com/unlocking-the-mystery-of-taxes-on-employer-issued-nonqualified-stock-options/) - Employee stock options remain a potentially valuable asset for employees who receive them. For example, many Silicon Valley millionaires got rich (or semi-rich) from exercising stock options when they worked for start-up companies or fast-growing enterprises. We’ll explain what you need to know about the federal income and employment tax rules for employer-issued nonqualified stock - [The amount you and your employees can save for retirement is going up slightly in 2025](https://cpatrucking.com/the-amount-you-and-your-employees-can-save-for-retirement-is-going-up-slightly-in-2025/) - How much can you and your employees contribute to your 401(k)s or other retirement plans next year? In Notice 2024-80, the IRS recently announced cost-of-living adjustments that apply to the dollar limitations for retirement plans, as well as other qualified plans, for 2025. With inflation easing, the amounts aren’t increasing as much as in recent - [The nanny tax: What household employers need to know ](https://cpatrucking.com/the-nanny-tax-what-household-employers-need-to-know/) - Hiring household help, whether you employ a nanny, housekeeper or gardener, can significantly ease the burden of childcare and daily chores. However, as a household employer, it’s critical to understand your tax obligations, commonly called the “nanny tax.” If you hire a household employee who isn’t an independent contractor, you may be liable for federal - [From flights to meals: A guide to business travel tax deductions](https://cpatrucking.com/from-flights-to-meals-a-guide-to-business-travel-tax-deductions/) - As a business owner, you may travel to visit customers, attend conferences, check on vendors and for other purposes. Understanding which travel expenses are tax deductible can significantly affect your bottom line. Properly managing travel costs can help ensure compliance and maximize your tax savings. Your tax home Eligible taxpayers can deduct the ordinary and - [How can you build a golden nest egg if you’re self-employed?](https://cpatrucking.com/how-can-you-build-a-golden-nest-egg-if-youre-self-employed/) - If you own a small business with no employees (other than your spouse) and want to set up a retirement plan, consider a solo 401(k) plan. This is also an option for self-employed individuals or business owners who wish to upgrade from a SIMPLE IRA or Simplified Employee Pension (SEP) plan. A solo 401(k), also - [Employers: In 2025, the Social Security wage base is going up](https://cpatrucking.com/employers-in-2025-the-social-security-wage-base-is-going-up/) - As we approach 2025, changes are coming to the Social Security wage base. The Social Security Administration recently announced that the wage base for computing Social Security tax will increase to $176,100 for 2025 (up from $168,600 for 2024). Wages and self-employment income above this amount aren’t subject to Social Security tax. If your business - [How your business can prepare for and respond to an IRS audit](https://cpatrucking.com/how-your-business-can-prepare-for-and-respond-to-an-irs-audit/) - The IRS has been increasing its audit efforts, focusing on large businesses and high-income individuals. By 2026, it plans to nearly triple its audit rates for large corporations with assets exceeding $250 million. Under these plans, partnerships with assets over $10 million will also see audit rates increase tenfold by 2026. This ramp-up in audits is part - [Advantages of keeping your business separate from its real estate](https://cpatrucking.com/advantages-of-keeping-your-business-separate-from-its-real-estate/) - Does your business require real estate for its operations? Or do you hold property titled under your business’s name? It might be worth reconsidering this strategy. With long-term tax, liability and estate planning advantages, separating real estate ownership from the business may be a wise choice. How taxes affect a sale Businesses that are formed - [Understanding your obligations: Does your business need to report employee health coverage?](https://cpatrucking.com/understanding-your-obligations-does-your-business-need-to-report-employee-health-coverage/) - Employee health coverage is a significant part of many companies’ benefits packages. However, the administrative responsibilities that accompany offering health insurance can be complex. One crucial aspect is understanding the reporting requirements of federal agencies such as the IRS. Does your business have to comply, and if so, what must you do? Here are some - [2024 Q4 tax calendar: Key deadlines for businesses and other employers](https://cpatrucking.com/2024-q4-tax-calendar-key-deadlines-for-businesses-and-other-employers/) - Here are some of the key tax-related deadlines affecting businesses and other employers during the fourth quarter of 2024. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. Contact us to ensure you’re meeting all applicable deadlines and to learn more about the filing requirements. Note: - [Help ensure your partnership or LLC complies with tax law](https://cpatrucking.com/help-ensure-your-partnership-or-llc-complies-with-tax-law/) - When drafting partnership and LLC operating agreements, various tax issues must be addressed. This is also true of multi-member LLCs that are treated as partnerships for tax purposes. Here are some critical issues to include in your agreement so your business remains in compliance with federal tax law. Identify and describe guaranteed payments to partners - [Emil @ CPA Trucking: Some taxpayers qualify for more favorable “head of household” tax filing status](https://cpatrucking.com/emil-cpa-trucking-some-taxpayers-qualify-for-more-favorable-head-of-household-tax-filing-status/) - When preparing your tax return, we’ll check one of the following statuses: Single, married filing jointly, married filing separately, head of household or qualifying widow(er). Filing a return as a head of household is more favorable than filing as a single taxpayer. For example, the 2023 standard deduction for a single taxpayer is $13,850 while - [Emil @ CPA Trucking wrote: The tax advantages of hiring your child this summer](https://cpatrucking.com/emil-cpa-trucking-wrote-the-tax-advantages-of-hiring-your-child-this-summer/) - Summer is around the corner so you may be thinking about hiring young people at your small business. At the same time, you may have children looking to earn extra spending money. You can save family income and payroll taxes by putting your child on the payroll. It’s a win-win! Here are four tax advantages. - [Emil @ CPA Trucking explain how to beefing up benefits may save tax dollars for construction businesses](https://cpatrucking.com/emil-cpa-trucking-explain-how-to-beefing-up-benefits-may-save-tax-dollars-for-construction-businesses/) - Construction companies continue to find themselves embroiled in a protracted battle for skilled labor. One fundamental way to recruit the best talent and retain valued employees is by offering competitive compensation and benefits. Let’s focus on the latter, which may also help lower your tax bill. Popular options to consider The term “benefits package” is - [Emil @ CPA Trucking: The tax rules for donating artwork to charity](https://cpatrucking.com/emil-cpa-trucking-the-tax-rules-for-donating-artwork-to-charity/) - If you’re an art collector, you may wonder about the tax breaks available for donating a work of art to charity. Several different tax rules may come into play in connection with such contributions. Basic rules Your deduction for a charitable contribution of art is subject to be reduced if the charity’s use of it - [CPA Trucking - Retirement saving options for your small business: Keep it simple](https://cpatrucking.com/cpa-trucking-retirement-saving-options-for-your-small-business-keep-it-simple/) - If you’re thinking about setting up a retirement plan for yourself and your employees, but you’re worried about the financial commitment and administrative burdens involved, there are a couple of options to consider. Let’s take a look at a “simplified employee pension” (SEP) or a “savings incentive match plan for employees” (SIMPLE). SEPs are intended - [Emil @ CPA Trucking wrote: Your construction company may be able to claim the fuel tax credit](https://cpatrucking.com/emil-cpa-trucking-wrote-your-construction-company-may-be-able-to-claim-the-fuel-tax-credit/) - The federal fuel tax credit recently made the news when it was referenced on the IRS’s most recent “Dirty Dozen” list of tax scams. However, the false fuel-tax-credit scam involves dishonest third parties telling individuals that they may qualify for the credit when, in fact, only certain businesses are eligible to claim it. One of - [Emil @ CPA Trucking: Tax news for investors and users of cryptocurrency](https://cpatrucking.com/emil-cpa-trucking-tax-news-for-investors-and-users-of-cryptocurrency/) - If you’re a crypto investor or user, you may have noticed something new on your tax return this year. And you may soon notice a new form reporting requirements for digital assets. Check the box Beginning with tax year 2022, taxpayers must check a box on their tax returns indicating whether they received digital assets - [Emil @ CPA Trucking: Paperwork you can toss after filing your tax return](https://cpatrucking.com/emil-cpa-trucking-paperwork-you-can-toss-after-filing-your-tax-return/) - Once you file your 2022 tax return, you may wonder what personal tax papers you can throw away and how long you should retain certain records. You may have to produce those records if the IRS audits your return or seeks to assess tax. It’s a good idea to keep the actual returns indefinitely. But - [Emil @ CPA Trucking tips - Take advantage of the rehabilitation tax credit when altering or adding to business space](https://cpatrucking.com/emil-cpa-trucking-tips-take-advantage-of-the-rehabilitation-tax-credit-when-altering-or-adding-to-business-space/) - If your business occupies substantial space and needs to increase or move from that space in the future, you should keep the rehabilitation tax credit in mind. This is especially true if you favor historic buildings. The credit is equal to 20% of the qualified rehabilitation expenditures (QREs) for a qualified rehabilitated building that’s also - [Emil @ CPA Trucking: There’s a favorable “stepped-up basis” if you inherit property](https://cpatrucking.com/emil-cpa-trucking-theres-a-favorable-stepped-up-basis-if-you-inherit-property/) - A common question for people planning their estates or inheriting property is: For tax purposes, what’s the “cost” (or “basis”) an individual gets in property that he or she inherits from another? This is an important area and is too often overlooked when families start to put their affairs in order. Under the fair market - [Emil @ CPA Trucking wrote: 4 ways corporate business owners can help ensure their compensation is “reasonable”](https://cpatrucking.com/emil-cpa-trucking-wrote-4-ways-corporate-business-owners-can-help-ensure-their-compensation-is-reasonable/) - If you’re the owner of an incorporated business, you know there’s a tax advantage to taking money out of a C corporation as compensation rather than as dividends. The reason: A corporation can deduct the salaries and bonuses that it pays executives, but not dividend payments. Therefore, if funds are paid as dividends, they’re taxed - [Emil @ CPA Trucking explain how to education benefits help attract, retain and motivate your employees](https://cpatrucking.com/emil-cpa-trucking-explain-how-to-education-benefits-help-attract-retain-and-motivate-your-employees/) - One popular fringe benefit is an education assistance program that allows employees to continue learning and perhaps earn a degree with financial assistance from their employers. One way to attract, retain and motivate employees is to provide education fringe benefits so that team members can improve their skills and gain additional knowledge. An employee can - [Emil @ CPA Trucking explain how construction business owners can prepare for an IRS audit](https://cpatrucking.com/emil-cpa-trucking-explain-how-construction-business-owners-can-prepare-for-an-irs-audit/) - The IRS has historically considered construction a high-risk compliance industry because of its potential for cash transactions, underreported income and worker misclassification. What’s more, as the tax agency rolls into the future under new leadership, with improved technology and a boosted workforce, many business pundits are keeping an eye out for a rise in audit - [Emil @ CPA Trucking: The IRS clarifies what counts as qualified medical expenses](https://cpatrucking.com/emil-cpa-trucking-the-irs-clarifies-what-counts-as-qualified-medical-expenses/) - If you itemize deductions on your tax return, you may wonder: What medical expenses can I include? The IRS recently issued some frequently asked questions addressing when certain costs are qualified medical expenses for federal income tax purposes. Basic rules and IRS clarifications You can claim an itemized deduction for qualified medical expenses that exceed - [Emil @ CPA Trucking wrote: Use the tax code to make business losses less painful](https://cpatrucking.com/emil-cpa-trucking-wrote-use-the-tax-code-to-make-business-losses-less-painful/) - Whether you’re operating a new company or an established business, losses can happen. The federal tax code may help soften the blow by allowing businesses to apply losses to offset taxable income in future years, subject to certain limitations. Qualifying for a deduction The net operating loss (NOL) deduction addresses the tax inequities that can - [Emil @ CPA Trucking: Questions you may still have after filing your tax return](https://cpatrucking.com/emil-cpa-trucking-questions-you-may-still-have-after-filing-your-tax-return/) - If you’ve successfully filed your 2022 tax return with the IRS, you may think you’re done with taxes for another year. But some questions may still crop up about the return. Here are brief answers to three questions that we’re frequently asked at this time of year. When will your refund arrive? The IRS has - [Emil @ CPA Trucking tips: If you’re hiring independent contractors, make sure they’re properly handled](https://cpatrucking.com/emil-cpa-trucking-tips-if-youre-hiring-independent-contractors-make-sure-theyre-properly-handled/) - Many businesses use independent contractors to help keep their costs down — especially in these times of staff shortages and inflationary pressures. If you’re among them, be careful that these workers are properly classified for federal tax purposes. If the IRS reclassifies them as employees, it can be an expensive mistake. The question of whether - [Emil @ CPA Trucking explain how to use proactive measures to manage materials and labor costs](https://cpatrucking.com/emil-cpa-trucking-explain-how-to-use-proactive-measures-to-manage-materials-and-labor-costs/) - High inflation and rising interest rates are still affecting many businesses. For construction company owners, this means you’ll need to continue paying close attention to materials and labor costs. Keeping these dollar amounts in line calls for ongoing proactive measures. Be prepared for supply fluctuations When it comes to materials, manufacturing delays are often unpredictable. - [CPA Trucking: 4 tax challenges you may encounter if you’re retiring soon](https://cpatrucking.com/cpa-trucking-4-tax-challenges-you-may-encounter-if-youre-retiring-soon/) - Are you getting ready to retire? If so, you’ll soon experience changes in your lifestyle and income sources that may have numerous tax implications. Here’s a brief rundown of four tax and financial issues you may contend with when you retire: Taking required minimum distributions. These are the minimum amounts you must withdraw from your - [Emil @ CPA Trucking wrote: The IRS has just announced 2024 amounts for Health Savings Accounts](https://cpatrucking.com/emil-cpa-trucking-wrote-the-irs-has-just-announced-2024-amounts-for-health-savings-accounts/) - The IRS recently released guidance providing the 2024 inflation-adjusted amounts for Health Savings Accounts (HSAs). HSA fundamentals An HSA is a trust created or organized exclusively for the purpose of paying the “qualified medical expenses” of an “account beneficiary.” An HSA can only be established for the benefit of an “eligible individual” who is covered - [Emil @ CPA Trucking gives you 5 tips for avoiding profit fade](https://cpatrucking.com/emil-cpa-trucking-gives-you-5-tips-for-avoiding-profit-fade/) - Profit fade can be a serious problem for construction companies. It’s not only a red flag for sureties and lenders, but also a negative indicator regarding the overall financial performance of the business. As the name suggests, profit fade simply means a decline in expected gross profits over the course of a project. There are - [Emil @ CPA Trucking explain how to being a gig worker comes with tax consequences](https://cpatrucking.com/emil-cpa-trucking-explain-how-to-being-a-gig-worker-comes-with-tax-consequences/) - In recent years, many workers have become engaged in the “gig” economy. You may think of gig workers as those who deliver take-out restaurant meals, walk dogs and drive for ride-hailing services. But so-called gig work seems to be expanding. Today, some nurses have become gig workers and writers in Hollywood who recently went on - [Emil @ CPA Trucking: Keep these DOs and DON’Ts in mind when deducting business meal and vehicle expenses](https://cpatrucking.com/emil-cpa-trucking-keep-these-dos-and-donts-in-mind-when-deducting-business-meal-and-vehicle-expenses/) - If you’re claiming deductions for business meals or auto expenses, expect the IRS to closely review them. In some cases, taxpayers have incomplete documentation or try to create records months (or years) later. In doing so, they fail to meet the strict substantiation requirements set forth under tax law. Tax auditors are adept at rooting - [Emil @ CPA Trucking wrote: Benefits of a living trust for your estate](https://cpatrucking.com/emil-cpa-trucking-wrote-benefits-of-a-living-trust-for-your-estate/) - You may think you don’t need to make any estate planning moves because of the generous federal estate tax exemption of $12.92 million for 2023 (effectively $25.84 million if you’re married). However, if you have significant assets, you should consider establishing a living trust to avoid probate. Probate is a court-supervised legal process intended to - [CPA Trucking tips: Traveling for business this summer? Here’s what you can deduct](https://cpatrucking.com/cpa-trucking-tips-traveling-for-business-this-summer-heres-what-you-can-deduct/) - If you and your employees are traveling for business this summer, there are a number of considerations to keep in mind. Under tax law, in order to claim deductions, you must meet certain requirements for out-of-town business travel within the United States. The rules apply if the business conducted reasonably requires an overnight stay. Note: - [Emil @ CPA Trucking gives you strategic tax-planning Q&As for construction businesses](https://cpatrucking.com/emil-cpa-trucking-gives-you-strategic-tax-planning-qas-for-construction-businesses/) - To maximize their tax savings, construction business owners need to plan year-round. Strategic tax planning is about not only knowing which credits and deductions your company can claim, but also minding other important details. Here are some questions to ask yourself — and answers to consider — about just a few important tax issues for - [Emil @ CPA Trucking explain how to reduce the impact of the 3.8% net investment income tax](https://cpatrucking.com/emil-cpa-trucking-explain-how-to-reduce-the-impact-of-the-3-8-net-investment-income-tax/) - High-income taxpayers face a regular income tax rate of 35% or 37%. And they may also have to pay a 3.8% net investment income tax (NIIT) that’s imposed in addition to regular income tax. Fortunately, there are some ways you may be able to reduce its impact. Affected taxpayers The NIIT applies to you only - [CPA Trucking: Advantages and disadvantages of claiming big first-year real estate depreciation deductions](https://cpatrucking.com/cpa-trucking-advantages-and-disadvantages-of-claiming-big-first-year-real-estate-depreciation-deductions/) - Your business may be able to claim big first-year depreciation tax deductions for eligible real estate expenditures rather than depreciate them over several years. But should you? It’s not as simple as it may seem. Qualified improvement property For qualifying assets placed in service in tax years beginning in 2023, the maximum allowable first-year Section - [CPA Trucking: When can seniors deduct Medicare premiums on their tax returns?](https://cpatrucking.com/cpa-trucking-when-can-seniors-deduct-medicare-premiums-on-their-tax-returns/) - If you’re age 65 and older and have basic Medicare insurance, you may need to pay additional premiums to get the level of coverage you want. The premiums can be costly, especially for married couples with both spouses paying them. But there may be an advantage: You may qualify for a tax break for paying - [2023 Q3 tax calendar by CPA Trucking: Key deadlines for businesses and other employers](https://cpatrucking.com/2023-q3-tax-calendar-by-cpa-trucking-key-deadlines-for-businesses-and-other-employers/) - Here are some of the key tax-related deadlines affecting businesses and other employers during the third quarter of 2023. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. Contact us to ensure you’re meeting all applicable deadlines and to learn more about the filing requirements. July - [CPA Trucking>Should your construction business invest in custom software?](https://cpatrucking.com/cpa-truckingshould-your-construction-business-invest-in-custom-software/) - Construction business owners are regularly urged to buy the latest and greatest software. But no such tool is perfect. Off-the-shelf products don’t always provide the specific functionality needed or “play well” with other systems. All this hassle might lead some contractors to consider engaging an outside firm to help them develop a customized solution. It’s - [Are you married and not earning compensation? You may be able to put money in an IRA](https://cpatrucking.com/are-you-married-and-not-earning-compensation-you-may-be-able-to-put-money-in-an-ira/) - When one spouse in a married couple is not earning compensation, the couple may not be able to save as much as they need for a comfortable retirement. In general, an IRA contribution is allowed only if a taxpayer earns compensation. However, there’s an exception involving a “spousal” IRA. It allows contributions to be made - [CPA Trucking>The Trust Fund Recovery Penalty: Who can it be personally assessed against?](https://cpatrucking.com/cpa-truckingthe-trust-fund-recovery-penalty-who-can-it-be-personally-assessed-against/) - If you own or manage a business with employees, there’s a harsh tax penalty that you could be at risk for paying personally. The Trust Fund Recovery Penalty (TFRP) applies to Social Security and income taxes that are withheld by a business from its employees’ wages. Sweeping penalty The TFRP is dangerous because it applies - [CPA Trucking: The best way to survive an IRS audit is to prepare](https://cpatrucking.com/cpa-trucking-the-best-way-to-survive-an-irs-audit-is-to-prepare/) - The IRS recently released its audit statistics for the 2022 fiscal year and fewer taxpayers had their returns examined as compared with prior years. But even though a small percentage of returns are being chosen for audits these days, that will be little consolation if yours is one of them. Recent statistics Overall, just 0.49% - [CPA Trucking: Jury awards more than $22 million in back pay to manufacturing employees](https://cpatrucking.com/cpa-trucking-jury-awards-more-than-22-million-in-back-pay-to-manufacturing-employees/) - The U.S. Department of Labor (DOL) recently announced that a jury in a landmark case, Walsh v. East Penn Manufacturing Co, Inc., DC-PA, has awarded more than $22 million in back wages to about 7,500 employees of a battery manufacturer. The award marks the largest recorded verdict ever under the Fair Labor Standards Act (FLSA). - [Emil @ CPA Trucking gives you 3 big inventory issues for construction companies](https://cpatrucking.com/emil-cpa-trucking-gives-you-3-big-inventory-issues-for-construction-companies/) - In the construction industry, supply-chain challenges are nothing new. They’ve just gotten much more media attention over the last few years. Increased globalization, a pandemic and geopolitical strife have all contributed to some notable slowdowns, though things have generally been better lately. One way that construction companies can mitigate supply-chain problems is to maintain their - [Emil @ CPA Trucking wrote - That email or text from the IRS: It’s a scam!](https://cpatrucking.com/emil-cpa-trucking-wrote-that-email-or-text-from-the-irs-its-a-scam/) - “Thousands of people have lost millions of dollars and their personal information to tax scams,” according to the IRS. The scams may come in through email, text messages, telephone calls or regular mail. Criminals regularly target both individuals and businesses and often prey on the elderly. Important: The IRS will never contact you by email, - [Use an S corporation to mitigate federal employment tax bills](https://cpatrucking.com/use-an-s-corporation-to-mitigate-federal-employment-tax-bills/) - If you own an unincorporated small business, you probably don’t like the size of your self-employment (SE) tax bills. No wonder! For 2023, the SE tax is imposed at the painfully high rate of 15.3% on the first $160,200 of net SE income. This includes 12.4% for Social Security tax and 2.9% for Medicare tax. - [Corporate officers or shareholders: How should you treat expenses paid personally?](https://cpatrucking.com/corporate-officers-or-shareholders-how-should-you-treat-expenses-paid-personally/) - If you play a major role in a closely held corporation, you may sometimes spend money on corporate expenses personally. These costs may end up being nondeductible both by an officer and the corporation unless the correct steps are taken. This issue is more likely to happen with a financially troubled corporation. What can’t you - [Emil @ CPA Trucking: A tax-smart way to develop and sell appreciated land](https://cpatrucking.com/emil-cpa-trucking-a-tax-smart-way-to-develop-and-sell-appreciated-landemil-cpa-trucking/) - Let’s say you own highly appreciated land that’s now ripe for development. If you subdivide it, develop the resulting parcels and sell them off for a hefty profit, it could trigger a large tax bill. In this scenario, the tax rules generally treat you as a real estate dealer. That means your entire profit — including - [Emil @ CPA Trucking wrote: The advantages of using an LLC for your small business](https://cpatrucking.com/emil-cpa-trucking-wrote-the-advantages-of-using-an-llc-for-your-small-business/) - If you operate your small business as a sole proprietorship, you may have thought about forming a limited liability company (LLC) to protect your assets. Or maybe you’re launching a new business and want to know your options for setting it up. Here are the basics of operating as an LLC and why it might - [CPA Trucking: Receive more than $10,000 in cash at your business? Here’s what you must do](https://cpatrucking.com/cpa-trucking-receive-more-than-10000-in-cash-at-your-business-heres-what-you-must-do/) - Does your business receive large amounts of cash or cash equivalents? If so, you’re generally required to report these transactions to the IRS — and not just on your tax return. The requirements Each person who, in the course of operating a trade or business, receives more than $10,000 in cash in one transaction (or - [Planning ahead for 2024 by CPA Trucking: Should your 401(k) help employees with emergencies?](https://cpatrucking.com/planning-ahead-for-2024-by-cpa-trucking-should-your-401k-help-employees-with-emergencies/) - The SECURE 2.0 law, which was enacted last year, contains wide-ranging changes to retirement plans. One provision in the law is that eligible employers will soon be able to provide more help to staff members facing emergencies. This will be done through what the law calls “pension-linked emergency savings accounts.” Effective for plan years beginning - [Guaranteeing a loan to your corporation? There may be tax implications](https://cpatrucking.com/guaranteeing-a-loan-to-your-corporation-there-may-be-tax-implications/) - Let’s say you decide to, or are asked to, guarantee a loan to your corporation. Before agreeing to act as a guarantor, endorser or indemnitor of a debt obligation of your closely held corporation, be aware of the possible tax implications. If your corporation defaults on the loan and you’re required to pay principal or - [Emil @ CPA Trucking wrote: The Social Security wage base for employees and self-employed people is increasing in 2024](https://cpatrucking.com/emil-cpa-trucking-wrote-the-social-security-wage-base-for-employees-and-self-employed-people-is-increasing-in-2024/) - The Social Security Administration recently announced that the wage base for computing Social Security tax will increase to $168,600 for 2024 (up from $160,200 for 2023). Wages and self-employment income above this threshold aren’t subject to Social Security tax. Basic details The Federal Insurance Contributions Act (FICA) imposes two taxes on employers, employees and self-employed - [Emil @ CPA Trucking: Divorcing business owners should pay attention to the tax consequences](https://cpatrucking.com/emil-cpa-trucking-divorcing-business-owners-should-pay-attention-to-the-tax-consequences/) - If you’re getting a divorce, you know the process is generally filled with stress. But if you’re a business owner, tax issues can complicate matters even more. Your business ownership interest is one of your biggest personal assets and in many cases, your marital property will include all or part of it. Transferring property tax-free - [Emil @ CPA Trucking wrote: Update on depreciating business assets](https://cpatrucking.com/emil-cpa-trucking-wrote-update-on-depreciating-business-assets/) - The Tax Cuts and Jobs Act liberalized the rules for depreciating business assets. However, the amounts change every year due to inflation adjustments. And due to high inflation, the adjustments for 2023 were big. Here are the numbers that small business owners need to know. Section 179 deductions For qualifying assets placed in service in - [Emil @ CPA Trucking tips: Spouse-run businesses face special tax issues](https://cpatrucking.com/emil-cpa-trucking-tips-spouse-run-businesses-face-special-tax-issues/) - Do you and your spouse together operate a profitable unincorporated small business? If so, you face some challenging tax issues. The partnership issue An unincorporated business with your spouse is classified as a partnership for federal income tax purposes, unless you can avoid that treatment. Otherwise, you must file an annual partnership return, on Form - [Business automobiles: How the tax depreciation rules work](https://cpatrucking.com/business-automobiles-how-the-tax-depreciation-rules-work/) - Do you use an automobile in your trade or business? If so, you may question how depreciation tax deductions are determined. The rules are complicated, and special limitations that apply to vehicles classified as passenger autos (which include many pickups and SUVs) can result in it taking longer than expected to fully depreciate a vehicle. - [Emil @ CPA Trucking Wrote: It’s important to understand how taxes factor into M&A transactions](https://cpatrucking.com/emil-cpa-trucking-wrote-its-important-to-understand-how-taxes-factor-into-ma-transactions/) - In recent years, merger and acquisition activity has been strong in many industries. If your business is considering merging with or acquiring another business, it’s important to understand how the transaction will be taxed under current law. Stocks vs. assets From a tax standpoint, a transaction can basically be structured in two ways: 1. Stock - [2023 Q4 tax calendar: Key deadlines for businesses and other employers](https://cpatrucking.com/2023-q4-tax-calendar-key-deadlines-for-businesses-and-other-employers/) - Here are some of the key tax-related deadlines affecting businesses and other employers during the fourth quarter of 2023. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. Contact us to ensure you’re meeting all applicable deadlines and to learn more about the filing requirements. Note: - [Emil @ CPA Trucking: What types of expenses can’t be written off by your business?](https://cpatrucking.com/emil-cpa-trucking-what-types-of-expenses-cant-be-written-off-by-your-business/) - If you read the Internal Revenue Code (and you probably don’t want to!), you may be surprised to find that most business deductions aren’t specifically listed. For example, the tax law doesn’t explicitly state that you can deduct office supplies and certain other expenses. Some expenses are detailed in the tax code, but the general - [Emil @ CPA Trucking explain How IRS auditors learn about your business industry](https://cpatrucking.com/emil-cpa-trucking-explain-how-irs-auditors-learn-about-your-business-industry/) - Ever wonder how IRS examiners know about different industries so they can audit various businesses? They generally do research about specific industries and issues on tax returns by using IRS Audit Techniques Guides (ATGs). A little-known fact is that these guides are available to the public on the IRS website. In other words, your business - [Emil @ CPA Trucking tips: New per diem business travel rates kicked in on October 1](https://cpatrucking.com/emil-cpa-trucking-tips-new-per-diem-business-travel-rates-kicked-in-on-october-1/) - Are employees at your business traveling and frustrated about documenting expenses? Or perhaps you’re annoyed at the time and energy that goes into reviewing business travel expenses. There may be a way to simplify the reimbursement of these expenses. In Notice 2023-68, the IRS announced the fiscal 2024 special “per diem” rates that became effective - [CPA Trucking - Choosing a business entity: Which way to go?](https://cpatrucking.com/cpa-trucking-choosing-a-business-entity-which-way-to-go/) - If you’re planning to start a business or thinking about changing your business entity, you need to determine what will work best for you. Should you operate as a C corporation or a pass-through entity such as a sole-proprietorship, partnership, limited liability company (LLC) or S corporation? There are many issues to consider. Currently, the corporate federal - [Emil @ CPA Trucking: Key 2024 inflation-adjusted tax parameters for small businesses and their owners](https://cpatrucking.com/emil-cpa-trucking-key-2024-inflation-adjusted-tax-parameters-for-small-businesses-and-their-owners/) - The IRS recently announced various inflation-adjusted federal income tax amounts. Here’s a rundown of the amounts that are most likely to affect small businesses and their owners. Rates and brackets If you run your business as a sole proprietorship or pass-through business entity (LLC, partnership or S corporation), the business’s net ordinary income from operations - [Emil @ CPA Trucking Explain: A cost segregation study may cut taxes and boost cash flow](https://cpatrucking.com/emil-cpa-trucking-explain-a-cost-segregation-study-may-cut-taxes-and-boost-cash-flow/) - Is your business depreciating over 30 years the entire cost of constructing the building that houses your enterprise? If so, you should consider a cost segregation study. It may allow you to accelerate depreciation deductions on certain items, thereby reducing taxes and boosting cash flow. Depreciation basics Business buildings generally have a 39-year depreciation period - [Emil @ CPA Trucking: There still may be time to reduce your small business 2023 tax bill](https://cpatrucking.com/emil-cpa-trucking-there-still-may-be-time-to-reduce-your-small-business-2023-tax-bill/) - In the midst of holiday parties and shopping for gifts, don’t forget to consider steps to cut the 2023 tax liability for your business. You still have time to take advantage of a few opportunities. Time deductions and income If your business operates on a cash basis, you can significantly affect your amount of taxable - [Emil @ CPA Trucking explain: A company car is a valuable perk but don’t forget about taxes](https://cpatrucking.com/emil-cpa-trucking-explain-a-company-car-is-a-valuable-perk-but-dont-forget-about-taxes/) - One of the most appreciated fringe benefits for owners and employees of small businesses is the use of a company car. This perk results in tax deductions for the employer as well as tax breaks for the owners and employees driving the cars. (And of course, they enjoy the nontax benefit of using a company - [Emil @ CPA Trucking explain: Giving gifts and throwing parties can help show gratitude and provide tax breaks](https://cpatrucking.com/emil-cpa-trucking-explain-giving-gifts-and-throwing-parties-can-help-show-gratitude-and-provide-tax-breaks/) - The holiday season is here. During this festive season, your business may want to show its gratitude to employees and customers by giving them gifts or hosting holiday parties. It’s a good time to review the tax rules associated with these expenses. Are they tax deductible by your business and is the value taxable to - [2024 Q1 tax calendar: Key deadlines for businesses and other employers](https://cpatrucking.com/2024-q1-tax-calendar-key-deadlines-for-businesses-and-other-employers/) - Here are some of the key tax-related deadlines affecting businesses and other employers during the first quarter of 2024. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. If you have questions about filing requirements, contact us. We can ensure you’re meeting all applicable deadlines. January - [Emil @ CPA Trucking wrote: The standard business mileage rate will be going up slightly in 2024](https://cpatrucking.com/emil-cpa-trucking-wrote-the-standard-business-mileage-rate-will-be-going-up-slightly-in-2024/) - The optional standard mileage rate used to calculate the deductible cost of operating an automobile for business will be going up by 1.5 cents per mile in 2024. The IRS recently announced that the cents-per-mile rate for the business use of a car, van, pickup or panel truck will be 67 cents (up from 65.5 cents for - [Emil @ CPA Trucking explain how to Defer a current tax bill with a like-kind exchange](https://cpatrucking.com/emil-cpa-trucking-explain-how-to-defer-a-current-tax-bill-with-a-like-kind-exchange/) - If you’re interested in selling commercial or investment real estate that has appreciated significantly, one way to defer a tax bill on the gain is with a Section 1031 “like-kind” exchange. With this transaction, you exchange the property rather than sell it. Although the real estate market has been tough recently in some locations, there are - [Does your business have employees who get tips? You may qualify for a tax credit](https://cpatrucking.com/does-your-business-have-employees-who-get-tips-you-may-qualify-for-a-tax-credit/) - If you’re an employer with a business where tipping is routine when providing food and beverages, you may qualify for a federal tax credit involving the Social Security and Medicare (FICA) taxes that you pay on your employees’ tip income. Credit fundamentals The FICA credit applies to tips that your staff members receive from customers - [Emil @ CPA Trucking explain: Tax-favored Qualified Small Business Corporation status could help you thrive](https://cpatrucking.com/emil-cpa-trucking-explain-tax-favored-qualified-small-business-corporation-status-could-help-you-thrive/) - Operating your small business as a Qualified Small Business Corporation (QSBC) could be a tax-wise idea. Tax-free treatment for eligible stock gains QSBCs are the same as garden-variety C corporations for tax and legal purposes — except QSBC shareholders are potentially eligible to exclude from federal income tax 100% of their stock sale gains. That - [Should your business offer the newemergency savings accounts to employees?](https://cpatrucking.com/should-your-business-offer-the-newemergency-savings-accounts-to-employees/) - As part of the SECURE 2.0 law, there’s a new benefit option for employees facing emergencies. It’s called a pension-linked emergency savings account (PLESA) and the provision authorizing it became effective for plan years beginning January 1, 2024. The IRS recently released guidance about the accounts (in Notice 2024-22) and the U.S. Department of Labor (DOL) - [Update on IRS efforts to combat questionable Employee Retention Tax Credit claims](https://cpatrucking.com/update-on-irs-efforts-to-combat-questionable-employee-retention-tax-credit-claims/) - The Employee Retention Tax Credit (ERTC) was introduced back when COVID-19 temporarily closed many businesses. The credit provided cash that helped enable struggling businesses to retain employees. Even though the ERTC expired for most employers at the end of the third quarter of 2021, it could still be claimed on amended returns after that. According - [Better tax break when applying the research credit against payroll taxes](https://cpatrucking.com/better-tax-break-when-applying-the-research-credit-against-payroll-taxes/) - The credit for increasing research activities, often referred to as the research and development (R&D) credit, is a valuable tax break available to certain eligible small businesses. Claiming the credit involves complex calculations, which we’ll take care of for you. But in addition to the credit itself, be aware that there are two additional features - [Taking your spouse on a business trip? Can you write off the costs?](https://cpatrucking.com/taking-your-spouse-on-a-business-trip-can-you-write-off-the-costs/) - A recent report shows that post-pandemic global business travel is going strong. The market reached $665.3 billion in 2022 and is estimated to hit $928.4 billion by 2030, according to a report from Research and Markets. If you own your own company and travel for business, you may wonder whether you can deduct the costs of having - [Emil @ CPA Trucking gives you 9 tax considerations if you’re starting a business as a sole proprietor](https://cpatrucking.com/emil-cpa-trucking-gives-you-9-tax-considerations-if-youre-starting-a-business-as-a-sole-proprietor/) - When launching a small business, many entrepreneurs start out as sole proprietors. If you’re launching a venture as a sole proprietorship, you need to understand the tax issues involved. Here are nine considerations: 1. You may qualify for the pass-through deduction. To the extent your business generates qualified business income, you’re currently eligible to claim the - [What’s the best accounting method route for business tax purposes?](https://cpatrucking.com/whats-the-best-accounting-method-route-for-business-tax-purposes/) - Businesses basically have two accounting methods to figure their taxable income: cash and accrual. Many businesses have a choice of which method to use for tax purposes. The cash method often provides significant tax benefits for eligible businesses, though some may be better off using the accrual method. Thus, it may be prudent for your - [Emil @ CPA Trucking: Tax-wise ways to take cash from your corporation while avoiding dividend treatment](https://cpatrucking.com/emil-cpa-trucking-tax-wise-ways-to-take-cash-from-your-corporation-while-avoiding-dividend-treatment/) - If you want to withdraw cash from your closely held corporation at a low tax cost, the easiest way is to distribute cash as a dividend. However, a dividend distribution isn’t tax efficient since it’s taxable to you to the extent of your corporation’s “earnings and profits,” but it’s not deductible by the corporation. 5 - [Emil @ CPA Trucking wrote: Maximize the QBI deduction before it’s gone](https://cpatrucking.com/emil-cpa-trucking-wrote-maximize-the-qbi-deduction-before-its-gone/) - The qualified business income (QBI) deduction is available to eligible businesses through 2025. After that, it’s scheduled to disappear. So if you’re eligible, you want to make the most of the deduction while it’s still on the books because it can potentially be a big tax saver. Deduction basics The QBI deduction is written off - [Emil @ CPA Trucking wrote: Bartering is a taxable transaction even if no cash is exchanged](https://cpatrucking.com/emil-cpa-trucking-wrote-bartering-is-a-taxable-transaction-even-if-no-cash-is-exchanged/) - If your small business is strapped for cash (or likes to save money), you may find it beneficial to barter or trade for goods and services. Bartering isn’t new — it’s the oldest form of trade — but the internet has made it easier to engage in with other businesses. However, if your business begins - [Coordinating Sec. 179 tax deductions with bonus depreciation](https://cpatrucking.com/coordinating-sec-179-tax-deductions-with-bonus-depreciation/) - Your business should generally maximize current year depreciation write-offs for newly acquired assets. Two federal tax breaks can be a big help in achieving this goal: first-year Section 179 depreciation deductions and first-year bonus depreciation deductions. These two deductions can potentially allow businesses to write off some or all of their qualifying asset expenses in Year 1. - [2024 Q2 tax calendar: Key deadlines for businesses and employers](https://cpatrucking.com/2024-q2-tax-calendar-key-deadlines-for-businesses-and-employers/) - Here are some of the key tax-related deadlines that apply to businesses and other employers during the second quarter of 2024. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. Contact us to ensure you’re meeting all applicable deadlines and to learn more about the filing - [Emil @ CPA Trucking: Scrupulous records and legitimate business expenses are the key to less painful IRS audits](https://cpatrucking.com/emil-cpa-trucking-scrupulous-records-and-legitimate-business-expenses-are-the-key-to-less-painful-irs-audits/) - If you operate a business, or you’re starting a new one, you know records of income and expenses need to be kept. Specifically, you should carefully record expenses to claim all the tax deductions to which you’re entitled. And you want to make sure you can defend the amounts reported on your tax returns in - [Emil @ CPA Trucking wrote - Don’t have a tax-favored retirement plan? Set one up now](https://cpatrucking.com/emil-cpa-trucking-wrote-dont-have-a-tax-favored-retirement-plan-set-one-up-now/) - If your business doesn’t already have a retirement plan, it might be a good time to take the plunge. Current retirement plan rules allow for significant tax-deductible contributions. For example, if you’re self-employed and set up a SEP-IRA, you can contribute up to 20% of your self-employment earnings, with a maximum contribution of $69,000 for - [When businesses may want to take a contrary approach with income and deductions](https://cpatrucking.com/when-businesses-may-want-to-take-a-contrary-approach-with-income-and-deductions/) - Businesses usually want to delay recognition of taxable income into future years and accelerate deductions into the current year. But when is it wise to do the opposite? And why would you want to? One reason might be tax law changes that raise tax rates. The Biden administration has proposed raising the corporate federal income - [When partners pay expenses related to the business](https://cpatrucking.com/when-partners-pay-expenses-related-to-the-business/) - It’s not unusual for a partner to incur expenses related to the partnership’s business. This is especially likely to occur in service partnerships such as an architecture or law firm. For example, partners in service partnerships may incur entertainment expenses in developing new client relationships. They may also incur expenses for: transportation to get to - [Growing your business with a new partner: Here are some tax considerations](https://cpatrucking.com/growing-your-business-with-a-new-partner-here-are-some-tax-considerations/) - There are several financial and legal implications when adding a new partner to a partnership. Here’s an example to illustrate: You and your partners are planning to admit a new partner. The new partner will acquire a one-third interest in the partnership by making a cash contribution to the business. Assume that your basis in - [The tax advantages of including debt in a C corporation capital structure](https://cpatrucking.com/the-tax-advantages-of-including-debt-in-a-c-corporation-capital-structure/) - Let’s say you plan to use a C corporation to operate a newly acquired business or you have an existing C corporation that needs more capital. You should know that the federal tax code treats corporate debt more favorably than corporate equity. So for shareholders of closely held C corporations, it can be a tax-smart move to include - [Should you convert your business from a C to an S corporation?](https://cpatrucking.com/should-you-convert-your-business-from-a-c-to-an-s-corporation/) - Choosing the right business entity has many implications, including the amount of your tax bill. The most common business structures are sole proprietorships, partnerships, limited liability companies, C corporations and S corporations. In some cases, a business may decide to switch from one entity type to another. Although S corporations can provide substantial tax benefits over C corporations in - [Emil @ CPA Trucking gives you Tax tips when buying the assets of a business](https://cpatrucking.com/tax-tips-when-buying-the-assets-of-a-business/) - After experiencing a downturn in 2023, merger and acquisition activity in several sectors is rebounding in 2024. If you’re buying a business, you want the best results possible after taxes. You can potentially structure the purchase in two ways: Buy the assets of the business, or Buy the seller’s entity ownership interest if the target business - [Inflation enhances the 2025 amounts for Health Savings Accounts](https://cpatrucking.com/inflation-enhances-the-2025-amounts-for-health-savings-accounts/) - The IRS recently released guidance providing the 2025 inflation-adjusted amounts for Health Savings Accounts (HSAs). These amounts are adjusted each year, based on inflation, and the adjustments are announced earlier in the year than other inflation-adjusted amounts, which allows employers to get ready for the next year. Fundamentals of HSAs An HSA is a trust - [Figuring corporate estimated tax](https://cpatrucking.com/figuring-corporate-estimated-tax/) - The next quarterly estimated tax payment deadline is June 17 for individuals and businesses, so it’s a good time to review the rules for computing corporate federal estimated payments. You want your business to pay the minimum amount of estimated tax without triggering the penalty for underpayment of estimated tax. Four possible options The required installment - [Hiring your child to work at your business this summer](https://cpatrucking.com/hiring-your-child-to-work-at-your-business-this-summer/) - With school out, you might be hiring your child to work at your company. In addition to giving your son or daughter some business knowledge, you and your child could reap some tax advantages. Benefits for your child There are special tax breaks for hiring your offspring if you operate your business as one of - [2024 Q3 tax calendar: Key deadlines for businesses and other employers](https://cpatrucking.com/2024-q3-tax-calendar-key-deadlines-for-businesses-and-other-employers/) - Here are some of the key tax-related deadlines affecting businesses and other employers during the third quarter of 2024. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. Contact us to ensure you’re meeting all applicable deadlines and to learn more about the filing requirements. July - [Consider borrowing from your corporation but structure the deal carefully](https://cpatrucking.com/consider-borrowing-from-your-corporation-but-structure-the-deal-carefully/) - If you own a closely held corporation, you can borrow funds from your business at rates that are lower than those charged by a bank. But it’s important to avoid certain risks and charge an adequate interest rate. Basics of this strategy Interest rates have increased over the last couple years. As a result, shareholders - [Be aware of the tax consequences of selling business property](https://cpatrucking.com/be-aware-of-the-tax-consequences-of-selling-business-property/) - If you’re selling property used in your trade or business, you should understand the tax implications. There are many complex rules that can potentially apply. To simplify this discussion, let’s assume that the property you want to sell is land or depreciable property used in your business, and has been held by you for more - [If your business has co-owners, you probably need a buy-sell agreement](https://cpatrucking.com/if-your-business-has-co-owners-you-probably-need-a-buy-sell-agreement/) - Are you buying a business that will have one or more co-owners? Or do you already own one fitting that description? If so, consider installing a buy-sell agreement. A well-drafted agreement can do these valuable things: Transform your business ownership interest into a more liquid asset, Prevent unwanted ownership changes, and Avoid hassles with the - [Closing a business involves a number of tax responsibilities ](https://cpatrucking.com/closing-a-business-involves-a-number-of-tax-responsibilities/) - While many facets of the economy have improved this year, the rising cost of living and other economic factors have caused many businesses to close their doors. If this is your situation, we can help you, including taking care of various tax responsibilities. To start with, a business must file a final federal income tax - [Business website expenses: How they’re handled for tax purposes](https://cpatrucking.com/business-website-expenses-how-theyre-handled-for-tax-purposes/) - Most businesses have websites today. Despite their widespread use, the IRS hasn’t issued formal guidance on when website costs can be deducted. But there are established rules that generally apply to the deductibility of business expenses and provide business taxpayers launching a website with some guidance about proper treatment. In addition, businesses can turn to - [The possible tax landscape for businesses in the future](https://cpatrucking.com/the-possible-tax-landscape-for-businesses-in-the-future/) - Get ready: The upcoming presidential and congressional elections may significantly alter the tax landscape for businesses in the United States. The reason has to do with a tax law that’s scheduled to expire in about 17 months and how politicians in Washington would like to handle it. How we got here The Tax Cuts and - [Understanding taxes on real estate gains](https://cpatrucking.com/understanding-taxes-on-real-estate-gains/) - Let’s say you own real estate that has been held for more than one year and is sold for a taxable gain. Perhaps this gain comes from indirect ownership of real estate via a pass-through entity such as an LLC, partnership or S corporation. You may expect to pay Uncle Sam the standard 15% or 20% - [Cash or accrual accounting: What’s best for tax purposes?](https://cpatrucking.com/cash-or-accrual-accounting-whats-best-for-tax-purposes/) - Your businesses may have a choice between using the cash or accrual method of accounting for tax purposes. The cash method often provides significant tax benefits for those that qualify. However, some businesses may be better off using the accrual method. Therefore, you need to evaluate the tax accounting method for your business to ensure - [Navigating tax complexities: Craft partnership agreements and LLC operating agreements with precision](https://cpatrucking.com/navigating-tax-complexities-craft-partnership-agreements-and-llc-operating-agreements-with-precision/) - Partnerships are often used for business and investment activities. So are multi-member LLCs that are treated as partnerships for tax purposes. A major reason is that these entities offer federal income tax advantages, the most important of which is pass-through taxation. They also must follow some special and sometimes complicated federal income tax rules. Governing - [Reasons an LLC might be the ideal choice for your small to medium-size business](https://cpatrucking.com/reasons-an-llc-might-be-the-ideal-choice-for-your-small-to-medium-size-business/) - Choosing the right business entity is a key decision for any business. The entity you pick can affect your tax bill, your personal liability and other issues. For many businesses, a limited liability company (LLC) is an attractive choice. It can be structured to resemble a corporation for owner liability purposes and a partnership for - [Emil @ CPA Trucking tips: It’s time for your small business to think about year-end tax planning](https://cpatrucking.com/emil-cpa-trucking-tips-its-time-for-your-small-business-to-think-about-year-end-tax-planning/) - With Labor Day in the rearview mirror, it’s time to take proactive steps that may help lower your small business’s taxes for this year and next. The strategy of deferring income and accelerating deductions to minimize taxes can be effective for most businesses, as is the approach of bunching deductible expenses into this year or - [CPA Trucking: Choosing an entity for your business? How about an S corporation?](https://cpatrucking.com/cpa-trucking-choosing-an-entity-for-your-business-how-about-an-s-corporation/) - If you’re starting a business with some partners and wondering what type of entity to form, an S corporation may be the most suitable form of business for your new venture. Here are some of the reasons why. A big benefit of an S corporation over a partnership is that as S corporation shareholders, you won’t - [Emil @ CPA Trucking: Two important tax deadlines are coming up — and they don’t involve filing your 2022 tax return](https://cpatrucking.com/emil-cpa-trucking-two-important-tax-deadlines-are-coming-up-and-they-dont-involve-filing-your-2022-tax-return/) - April 18 is the deadline for filing your 2022 tax return. But a couple of other tax deadlines are coming up in April and they’re important for certain taxpayers: Saturday, April 1 is the last day to begin receiving required minimum distributions (RMDs) from IRAs, 401(k)s and similar workplace plans for taxpayers who turned 72 - [Emil @ CPA Trucking gives you an insurance policy glossary for construction business owners](https://cpatrucking.com/emil-cpa-trucking-gives-you-an-insurance-policy-glossary-for-construction-business-owners/) - Every type of business needs at least a few insurance policies. Construction companies, however, tend to need many of them. After all, there are so many risks to guard against. Precisely which types of coverage your company needs will depend on factors such as its size, structure and specialty, as well as the geographic area - [CPA Trucking - 2023 Q2 tax calendar: Key deadlines for businesses and employers](https://cpatrucking.com/cpa-trucking-2023-q2-tax-calendar-key-deadlines-for-businesses-and-employers/) - Here are some of the key tax-related deadlines that apply to businesses and other employers during the second quarter of 2023. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. Contact us to ensure you’re meeting all applicable deadlines and to learn more about the filing - [Emil @ CPA Trucking: The 2022 gift tax return deadline is coming up soon](https://cpatrucking.com/emil-cpa-trucking-the-2022-gift-tax-return-deadline-is-coming-up-soon/) - Did you make large gifts to your children, grandchildren or other heirs last year? If so, it’s important to determine whether you’re required to file a 2022 gift tax return. And in some cases, even if it’s not required to file one, you may want to do so anyway. Filing requirements The annual gift tax - [Emil @ CPA Trucking - Changes in Sec. 174 make it a good time to review the R&E strategy of your business](https://cpatrucking.com/emil-cpa-trucking-changes-in-sec-174-make-it-a-good-time-to-review-the-re-strategy-of-your-business/) - It’s been years since the Tax Cuts and Jobs Act (TCJA) of 2017 was signed into law, but it’s still having an impact. Several provisions in the law have expired or will expire in the next few years. One provision that took effect last year was the end of current deductibility for research and experimental - [Emil @ CPA Trucking wrote: Claiming losses on depreciated or worthless stock](https://cpatrucking.com/emil-cpa-trucking-wrote-claiming-losses-on-depreciated-or-worthless-stock/) - Have you bought stock in a company that later dropped in value? While you may prefer to forget such an ill-fated investment, at least you can claim a capital loss deduction on your tax return. Here are the rules that apply when a stock you own is sold at a loss or becomes completely worthless. - [Emil @ CPA Trucking: 11 ways your construction company can avoid accounting mistakes](https://cpatrucking.com/emil-cpa-trucking-11-ways-your-construction-company-can-avoid-accounting-mistakes/) - One of the not-so-secret ways to run a profitable construction business is to follow sound accounting practices. Mistakes in financial reporting can be costly, potentially leading to budget overruns, cash shortfalls, delayed projects, unpaid bills and underfunded payroll. Here are 11 ways to minimize the potential for such errors: 1. Separate project expenses. In as - [Emil @ CPA Trucking wrote How to Protect the “ordinary and necessary” advertising expenses of your business](https://cpatrucking.com/emil-cpa-trucking-wrote-how-to-protect-the-ordinary-and-necessary-advertising-expenses-of-your-business/) - Under tax law, businesses can generally deduct advertising and marketing expenses that help keep existing customers and bring in new ones. This valuable tax deduction can help businesses cut their taxes. However, in order to be deductible, advertising and marketing expenses must be “ordinary and necessary.” As one taxpayer recently learned in U.S. Tax Court, - [Emil @ CPATrucking: Awarded money in a lawsuit or settlement? It’s only tax-free in certain circumstances](https://cpatrucking.com/emil-cpatrucking-awarded-money-in-a-lawsuit-or-settlement-its-only-tax-free-in-certain-circumstances/) - You generally must pay federal tax on all income you receive but there are some exceptions when you can exclude it. For example, compensatory awards and judgments for “personal physical injuries or physical sickness” are free from federal income tax under the tax code. This includes amounts received in a lawsuit or a settlement and - [CPA Trucking: Buying a new business vehicle? A heavy SUV is a tax-smart choice](https://cpatrucking.com/cpa-trucking-buying-a-new-business-vehicle-a-heavy-suv-is-a-tax-smart-choice/) - If you’re buying or replacing a vehicle that you’ll use in your business, be aware that a heavy SUV may provide a more generous tax break this year than you’d get from a smaller vehicle. The reason has to do with how smaller business cars are depreciated for tax purposes. Depreciation rules Business cars are - [CPA Trucking: There still may be time to make an IRA contribution for last year](https://cpatrucking.com/cpa-trucking-there-still-may-be-time-to-make-an-ira-contribution-for-last-year/) - If you’re getting ready to file your 2022 tax return, and your tax bill is higher than you’d like, there may still be an opportunity to lower it. If you’re eligible, you can make a deductible contribution to a traditional IRA right up until this year’s April 18 filing deadline and benefit from the tax - [CPA Trucking: Do you run a business from home? You may be able to deduct home office expenses](https://cpatrucking.com/cpa-trucking-do-you-run-a-business-from-home-you-may-be-able-to-deduct-home-office-expenses/) - Many people began working from home during the COVID-19 pandemic — and many still work from their home offices either all the time or on a hybrid basis. If you’re self-employed and run your business from home or perform certain functions there, you might be able to claim deductions for home office expenses against your - [Emil @ CPA Trucking: How construction companies can cope with the skilled labor shortage](https://cpatrucking.com/emil-cpa-trucking-how-construction-companies-can-cope-with-the-skilled-labor-shortage/) - Even before the pandemic and “the Great Resignation” that followed, construction businesses were facing a shortage of skilled workers. Recent events have only exacerbated the problem. And the skilled labor shortage doesn’t just make it harder to put boots on the ground for projects. It also heightens the risk of safety and quality issues. There - [CPA Trucking - Child tax credit: The rules keep changing but it’s still valuable](https://cpatrucking.com/cpa-trucking-child-tax-credit-the-rules-keep-changing-but-its-still-valuable/) - If you’re a parent, you may be confused about the rules for claiming the Child Tax Credit (CTC). The rules and credit amounts have changed significantly over the last six years. This tax break became more generous in 2018 than it was under prior law — and it became even better in 2021 for eligible - [CPA Trucking: Key tax issues in M&A transactions](https://cpatrucking.com/cpa-trucking-key-tax-issues-in-ma-transactions/) - Merger and acquisition activity dropped dramatically last year due to rising interest rates and a slowing economy. The total value of M&A transactions in North America in 2022 was down 41.4% from 2021, according to S&P Global Market Intelligence. But some analysts expect 2023 to see increased M&A activity in certain industries. If you’re considering - [CPA Trucking: Have employees who receive tips? Here are the tax implications](https://cpatrucking.com/cpa-trucking-have-employees-who-receive-tips-here-are-the-tax-implications/) - Many businesses in certain industries employ individuals who receive tips as part of their compensation. These businesses include restaurants, hotels and salons. Tip definition Tips are optional payments that customers make to employees who perform services. They can be cash or noncash. Cash tips include those received directly from customers, electronically paid tips distributed to - [Emil @ CPATrucking wrote: Answers to your questions about 2023 limits on individual taxes](https://cpatrucking.com/emil-cpatrucking-wrote-answers-to-your-questions-about-2023-limits-on-individual-taxes/) - Many people are more concerned about their 2022 tax bills right now than they are about their 2023 tax situations. That’s understandable because your 2022 individual tax return is due to be filed in 10 weeks (unless you file an extension). However, it’s a good time to familiarize yourself with tax amounts that may have - [CPA Trucking wrote: Retirement plan early withdrawals: Make sure you meet the requirements to avoid a penalty](https://cpatrucking.com/cpa-trucking-wrote-retirement-plan-early-withdrawals-make-sure-you-meet-the-requirements-to-avoid-a-penalty/) - Most retirement plan distributions are subject to income tax and may be subject to an additional penalty if you take an early withdrawal. What’s considered early? In general, it’s when participants take money out of a traditional IRA or other qualified retirement plan before age 59½. Such distributions are generally taxable and may be subject - [CPA Trucking: 8 ways to insulate your construction company against rising costs](https://cpatrucking.com/cpa-trucking-8-ways-to-insulate-your-construction-company-against-rising-costs/) - The construction industry continues to face supply chain slowdowns, labor shortages and inflation — though the latter of the three has generally moderated a bit as of late. To monitor and optimally respond to rising contract costs and market changes, contractors need a plan. Here are eight ways you can insulate your company against the - [Emil @ CPA Trucking wrote: Many tax limits affecting businesses have increased for 2023](https://cpatrucking.com/emil-cpa-trucking-wrote-many-tax-limits-affecting-businesses-have-increased-for-2023/) - An array of tax-related limits that affect businesses are indexed annually, and due to high inflation, many have increased more than usual for 2023. Here are some that may be important to you and your business. Social Security tax The amount of employees’ earnings that are subject to Social Security tax is capped for 2023 - [CPA Trucking: Why you might want to file early and answers to other tax season questions](https://cpatrucking.com/cpa-trucking-why-you-might-want-to-file-early-and-answers-to-other-tax-season-questions/) - The IRS announced it opened the 2023 individual income tax return filing season on January 23. That’s when the agency began accepting and processing 2022 tax year returns. Even if you typically don’t file until much closer to the mid-April deadline (or you file for an extension), consider filing earlier this year. The reason is - [CPA Trucking: Forms W-2 and 1099-NEC are due to be filed soon](https://cpatrucking.com/cpa-trucking-forms-w-2-and-1099-nec-are-due-to-be-filed-soon/) - With the 2023 filing season deadline drawing near, be aware that the deadline for businesses to file information returns for hired workers is even closer. By January 31, 2023, employers must file these forms: Form W-2, Wage and Tax Statement. W-2 forms show the wages paid and taxes withheld for the year for each employee. They - [Emil @ CPATrucking wrote: Tax-saving ways to help pay for college — once your child starts attending](https://cpatrucking.com/emil-cpatrucking-wrote-tax-saving-ways-to-help-pay-for-college-once-your-child-starts-attending/) - If you have a child or grandchild in college — congratulations! To help pay for the expenses, many parents and grandparents saved for years in tax-favored accounts, such as 529 plans. But there are also a number of tax breaks that you may be able to claim once your child begins attending college or post-secondary - [CPA Trucking: Residential construction companies should get the word out about home energy tax credits](https://cpatrucking.com/cpa-trucking-residential-construction-companies-should-get-the-word-out-about-home-energy-tax-credits/) - Does your construction business work in the residential sector? If so, there are some powerful tax incentives in effect right now that could generate revenue for your company. However, many property owners may not be aware of them, so it’s in your best interest to get the word out. Two credits in play In August 2022, - [Trucking CPA: How the new SECURE 2.0 law may affect your business](https://cpatrucking.com/trucking-cpa-how-the-new-secure-2-0-law-may-affect-your-business/) - If your small business has a retirement plan, and even if it doesn’t, you may see changes and benefits from a new law. The Setting Every Community Up for Retirement Enhancement 2.0 Act (SECURE 2.0) was recently signed into law. Provisions in the law will kick in over several years. SECURE 2.0 is meant to - [Trucking CPA: Tax-wise ways to save for college](https://cpatrucking.com/trucking-cpa-tax-wise-ways-to-save-for-college/) - If you’re a parent or grandparent with college-bound children, you may want to save to fund future education costs. Here are several approaches to take maximum advantage of the tax-favored ways to save that may be available to you. Savings bonds Series EE U.S. savings bonds offer two tax-saving opportunities when used to finance college - [Trucking CPA: The case for a digital construction enterprise](https://cpatrucking.com/trucking-cpa-the-case-for-a-digital-construction-enterprise/) - The construction industry has always been all about mobility. Yet many contractors continue to hold on to paper processes that keep employees — and project information — unnecessarily tethered to the front office. The widespread use of mobile devices and cloud-based software, greatly accelerated by the pandemic, is now essentially forcing construction companies to find - [CPA Trucking: Employers should be wary of ERC claims that are too good to be true](https://cpatrucking.com/cpa-trucking-employers-should-be-wary-of-erc-claims-that-are-too-good-to-be-true/) - The Employee Retention Credit (ERC) was a valuable tax credit that helped employers that kept workers on staff during the height of the COVID-19 pandemic. While the credit is no longer available, eligible employers that haven’t yet claimed it might still be able to do so by filing amended payroll returns for tax years 2020 - [Emil @ CPATrucking: SECURE 2.0 law may make you more secure in retirement](https://cpatrucking.com/emil-cpatrucking-secure-2-0-law-may-make-you-more-secure-in-retirement/) - A new law was recently signed that will help Americans save more for retirement, although many of the provisions don’t kick in for a few years. The Setting Every Community Up for Retirement Enhancement 2.0 Act (SECURE 2.0) was signed into law on December 29, 2022. SECURE 2.0 is meant to build on the original - [The standard business mileage rate is going up in 2023](https://cpatrucking.com/the-standard-business-mileage-rate-is-going-up-in-2023/) - Although the national price of gas is a bit lower than it was a year ago, the optional standard mileage rate used to calculate the deductible cost of operating an automobile for business will be going up in 2023. The IRS recently announced that the 2023 cents-per-mile rate for the business use of a car, - [Renting to a relative? Watch out for tax traps](https://cpatrucking.com/renting-to-a-relative-watch-out-for-tax-traps/) - If you own a home and rent it to a relative, you may be surprised to find out there could be tax consequences. Quick rundown of the rules Renting out a home or apartment that you own may result in a tax loss for you, even if the rental income is more than your operating - [How to minimize the S corporation LIFO recapture tax](https://cpatrucking.com/how-to-minimize-the-s-corporation-lifo-recapture-tax/) - If you’re considering converting your C corporation to an S corporation, be aware that there may be tax implications if you’ve been using the last in, first out (LIFO) inventory method. That’s because of the LIFO recapture income that will be triggered by converting to S corporation status. We can meet to compute what the - [Save for retirement by getting the most out of your 401(k) plan](https://cpatrucking.com/save-for-retirement-by-getting-the-most-out-of-your-401k-plan/) - Socking away money in a tax-advantaged retirement plan can help you reduce taxes and help secure a comfortable retirement. If your employer offers a 401(k) or Roth 401(k), contributing to the plan is a smart way to build a substantial nest egg. If you’re not already contributing the maximum allowed, consider increasing your contribution. Because - [Why smaller construction companies should consider the research credit](https://cpatrucking.com/why-smaller-construction-companies-should-consider-the-research-credit/) - Construction companies may not view themselves as “cutting-edge innovators” in the vein of software developers or medical researchers. But contractors can qualify for the research tax credit and potentially reap a substantial reward in lower tax liability. Essentially, this tax break allows a business to reduce its federal and state income taxes by a percentage - [2023 Q1 tax calendar: Key deadlines for businesses and other employers](https://cpatrucking.com/2023-q1-tax-calendar-key-deadlines-for-businesses-and-other-employers/) - Here are some of the key tax-related deadlines affecting businesses and other employers during the first quarter of 2023. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. If you have questions about filing requirements, contact us. We can ensure you’re meeting all applicable deadlines. January - [Selling stock by year-end? Watch out for the wash sale rule](https://cpatrucking.com/selling-stock-by-year-end-watch-out-for-the-wash-sale-rule/) - If you’re thinking about selling stock shares at a loss to offset gains that you’ve realized during 2022, it’s important to watch out for the “wash sale” rule. The loss could be disallowed Under this rule, if you sell stock or securities for a loss and buy substantially identical stock or securities back within the - [Succession planning considerations for construction business owners](https://cpatrucking.com/succession-planning-considerations-for-construction-business-owners/) - Construction company owners are great at completing projects, but many struggle to properly build a succession plan. Even if your retirement is decades away, it’s never too early to start. In fact, by initiating the process early, you can take stronger actions to cultivate your leadership team, ensure internal processes are sound and enhance the - [Do you qualify for the QBI deduction? And can you do anything by year-end to help qualify?](https://cpatrucking.com/do-you-qualify-for-the-qbi-deduction-and-can-you-do-anything-by-year-end-to-help-qualify/) - If you own a business, you may wonder if you’re eligible to take the qualified business income (QBI) deduction. Sometimes this is referred to as the pass-through deduction or the Section 199A deduction. The QBI deduction is: Available to owners of sole proprietorships, single member limited liability companies (LLCs), partnerships, and S corporations, as well - [Answers to your questions about taking withdrawals from IRAs](https://cpatrucking.com/answers-to-your-questions-about-taking-withdrawals-from-iras/) - As you may know, you can’t keep funds in your traditional IRA indefinitely. You have to start taking withdrawals from a traditional IRA (including a SIMPLE IRA or SEP IRA) when you reach age 72. The rules for taking required minimum distributions (RMDs) are complicated, so here are some answers to frequently asked questions. What - [Choosing a business entity? Here are the pros and cons of a C corporation](https://cpatrucking.com/choosing-a-business-entity-here-are-the-pros-and-cons-of-a-c-corporation/) - If you’re launching a new business venture, you’re probably wondering which form of business is most suitable. Here is a summary of the major advantages and disadvantages of doing business as a C corporation. A C corporation allows the business to be treated and taxed as a separate entity from you as the principal owner. A - [Strategies for investors to cut taxes as year-end approaches](https://cpatrucking.com/strategies-for-investors-to-cut-taxes-as-year-end-approaches/) - The overall stock market has been down during 2022 but there have been some bright spots. As year-end approaches, consider making some moves to make the best tax use of paper losses and actual losses from your stock market investments. Tax rates on sales Individuals are subject to tax at a rate as high as - [Intangible assets: How must the costs incurred be capitalized?](https://cpatrucking.com/intangible-assets-how-must-the-costs-incurred-be-capitalized/) - These days, most businesses have some intangible assets. The tax treatment of these assets can be complex. What makes intangibles so complicated? IRS regulations require the capitalization of costs to: Acquire or create an intangible asset, Create or enhance a separate, distinct intangible asset, Create or enhance a “future benefit” identified in IRS guidance as - [Year-end giving to charity or loved ones](https://cpatrucking.com/year-end-giving-to-charity-or-loved-ones/) - The holiday season is here and many people plan to donate to their favorite charities or give money or assets to their loved ones before the end of the year. Here are the basic tax rules involved in these transactions. Donating to charity In 2022, in order to receive a charitable donation write-off, you must - [Is your construction company’s 2023 budget built on a solid foundation?](https://cpatrucking.com/is-your-construction-companys-2023-budget-built-on-a-solid-foundation/) - By now, many construction businesses have at least outlined the parameters of their 2023 budgets, if not finished them entirely. No matter where you’re at in the process, it doesn’t hurt to double-check your methodology to ensure your spending plan for next year is built on a solid foundation. Start with spending Often, the budget-setting - [Is your business closing? Here are your final tax responsibilities](https://cpatrucking.com/is-your-business-closing-here-are-your-final-tax-responsibilities/) - Businesses shut down for many reasons. Some of the reasons that businesses shutter their doors: An owner retirement, A lease expiration, Staffing shortages, Partner conflicts, and Increased supply costs. If you’ve decided to close your business, we’re here to assist you in any way we can, including taking care of the various tax obligations that - [How savings bonds are taxed](https://cpatrucking.com/how-savings-bonds-are-taxed/) - Many people have savings bonds that were purchased many years ago. Perhaps they were given to your children as gifts or maybe you bought them yourself. You may wonder how the interest you earn is taxed. And if they reach final maturity, what action do you need to take to ensure there’s no loss of - [Prevent fraud at your construction company with a holistic approach](https://cpatrucking.com/prevent-fraud-at-your-construction-company-with-a-holistic-approach/) - Most experts would agree that the best way to minimize fraud at any company, including a construction business, is to take a holistic approach. As the owner, you must set the tone at the top regarding a zero-tolerance, fully vigilant attitude toward criminal or unethical acts. And you need to create an organizational culture that - [Computer software costs: How does your business deduct them?](https://cpatrucking.com/computer-software-costs-how-does-your-business-deduct-them/) - These days, most businesses buy or lease computer software to use in their operations. Or perhaps your business develops computer software to use in your products or services or sells or leases software to others. In any of these situations, you should be aware of the complex rules that determine the tax treatment of the - [2023 limits for businesses that have HSAs — or want to establish them](https://cpatrucking.com/2023-limits-for-businesses-that-have-hsas-or-want-to-establish-them/) - No one needs to remind business owners that the cost of employee health care benefits keeps going up. One way to provide some of these benefits is through an employer-sponsored Health Savings Account (HSA). For eligible individuals, an HSA offers a tax-advantaged way to set aside funds (or have their employers do so) to meet - [Adopting a child? Bring home a tax break too](https://cpatrucking.com/adopting-a-child-bring-home-a-tax-break-too/) - Two tax benefits are available to offset the expenses of adopting a child. In 2022, adoptive parents may be able to claim a credit against their federal tax for up to $14,890 of “qualified adoption expenses” for each child. This will increase to $15,950 in 2023. That’s a dollar-for-dollar reduction of tax. Also, adoptive parents - [Inflation means you and your employees can save more for retirement in 2023](https://cpatrucking.com/inflation-means-you-and-your-employees-can-save-more-for-retirement-in-2023/) - How much can you and your employees contribute to your 401(k)s next year — or other retirement plans? In Notice 2022-55, the IRS recently announced cost-of-living adjustments that apply to the dollar limitations for pensions, as well as other qualified retirement plans for 2023. The amounts increased more than they have in recent years due - [How inflation will affect your 2022 and 2023 tax bills](https://cpatrucking.com/how-inflation-will-affect-your-2022-and-2023-tax-bills/) - The effects of inflation are all around. You’re probably paying more for gas, food, health care and other expenses than you were last year. Are you wondering how high inflation will affect your federal income tax bill for 2023? The IRS recently announced next year’s inflation-adjusted tax amounts for several provisions. Some highlights Standard deduction. - [Reviewing 10 tax accounting methods for construction companies](https://cpatrucking.com/reviewing-10-tax-accounting-methods-for-construction-companies/) - Are you still using the optimal accounting method to handle your construction company’s tax deferrals? Depending on your business earnings, as well as your typical contract type and length, you can choose from various methods to align tax payments with contract revenue. In fact, the IRS Construction Industry Audit Technique Guide lists 10 tax accounting - [You may be liable for “nanny tax” for all types of domestic workers](https://cpatrucking.com/you-may-be-liable-for-nanny-tax-for-all-types-of-domestic-workers/) - You’ve probably heard of the “nanny tax.” But even if you don’t employ a nanny, it may apply to you. Hiring a house cleaner, gardener or other household employee (who isn’t an independent contractor) may make you liable for federal income and other taxes. You may also have state tax obligations. If you employ a - [Employers: In 2023, the Social Security wage base is going up](https://cpatrucking.com/employers-in-2023-the-social-security-wage-base-is-going-up/) - The Social Security Administration recently announced that the wage base for computing Social Security tax will increase to $160,200 for 2023 (up from $147,000 for 2022). Wages and self-employment income above this threshold aren’t subject to Social Security tax. Basics about Social Security The Federal Insurance Contributions Act (FICA) imposes two taxes on employers, employees - [Plan now to make tax-smart year-end gifts to loved ones](https://cpatrucking.com/plan-now-to-make-tax-smart-year-end-gifts-to-loved-ones/) - Are you feeling generous at year end? Taxpayers can transfer substantial amounts free of gift taxes to their children or other recipients each year through the proper use of the annual exclusion. The exclusion amount is adjusted for inflation annually, and for 2022, the amount is $16,000. The exclusion covers gifts that an individual makes - [Construction businesses must step carefully when hiring on-site labor](https://cpatrucking.com/construction-businesses-must-step-carefully-when-hiring-on-site-labor/) - It’s no secret that the construction industry has been struggling with a skilled labor shortage for years now. More recent events, such as the pandemic and “the Great Resignation,” have only exacerbated matters. The situation can drive a contractor to desperation if work really needs to get done and there aren’t enough able hands available. - [Providing fringe benefits to employees with no tax strings attached](https://cpatrucking.com/providing-fringe-benefits-to-employees-with-no-tax-strings-attached/) - Businesses can provide benefits to employees that don’t cost them much or anything at all. However, in some cases, employees may have to pay tax on the value of these benefits. Here are examples of two types of benefits which employees generally can exclude from income: A no-additional-cost benefit. This involves a service provided to - [Tax and other financial consequences of tax-free bonds](https://cpatrucking.com/tax-and-other-financial-consequences-of-tax-free-bonds/) - If you’re interested in investing in tax-free municipal bonds, you may wonder if they’re really free of taxes. While the investment generally provides tax-free interest on the federal (and possibly state) level, there may be tax consequences. Here’s how the rules work. Purchasing a bond If you buy a tax-exempt bond for its face amount, - [What local transportation costs can your business deduct?](https://cpatrucking.com/what-local-transportation-costs-can-your-business-deduct/) - You and your small business are likely to incur a variety of local transportation costs each year. There are various tax implications for these expenses. First, what is “local transportation?” It refers to travel in which you aren’t away from your tax home (the city or general area in which your main place of business - [Worried about an IRS audit? Prepare in advance](https://cpatrucking.com/worried-about-an-irs-audit-prepare-in-advance/) - IRS audit rates are historically low, according to a recent Government Accountability Office (GAO) report , but that’s little consolation if your return is among those selected to be examined. Plus, the IRS recently received additional funding in the Inflation Reduction Act to improve customer service, upgrade technology and increase audits of high-income taxpayers. But - [Investing in the future with a 529 education plan](https://cpatrucking.com/investing-in-the-future-with-a-529-education-plan/) - If you have a child or grandchild who’s going to attend college in the future, you’ve probably heard about qualified tuition programs, also known as 529 plans. These plans, named for the Internal Revenue Code section that provides for them, allow prepayment of higher education costs on a tax-favored basis. There are two types of - [Year-end tax planning ideas for individuals](https://cpatrucking.com/year-end-tax-planning-ideas-for-individuals/) - Now that fall is officially here, it’s a good time to start taking steps that may lower your tax bill for this year and next. One of the first planning steps is to ascertain whether you’ll take the standard deduction or itemize deductions for 2022. Many taxpayers won’t itemize because of the high 2022 standard - [9 cash-flow management tips for construction companies](https://cpatrucking.com/9-cash-flow-management-tips-for-construction-companies/) - Construction business owners know that cash is king. However, managing cash flow in an industry known for its ebbs and flows isn’t easy. And when you throw in the steady rise of inflation and ongoing supply chain issues, cash-flow management has become more important than ever. Here are nine tips to consider: 1. Perform regular - [Work Opportunity Tax Credit provides help to employers](https://cpatrucking.com/work-opportunity-tax-credit-provides-help-to-employers/) - In today’s tough job market and economy, the Work Opportunity Tax Credit (WOTC) may help employers. Many business owners are hiring and should be aware that the WOTC is available to employers that hire workers from targeted groups who face significant barriers to employment. The credit is worth as much as $2,400 for each eligible - [Don’t forget income taxes when planning your estate](https://cpatrucking.com/dont-forget-income-taxes-when-planning-your-estate/) - As a result of the current estate tax exemption amount ($12.06 million in 2022), many estates no longer need to be concerned with federal estate tax. Before 2011, a much smaller amount resulted in estate plans attempting to avoid it. But now, because many estates won’t be subject to estate tax, more planning can be - [Construction industry awaits guidance on new energy tax incentives](https://cpatrucking.com/construction-industry-awaits-guidance-on-new-energy-tax-incentives/) - Many contractors likely sat up and took notice in August when the Inflation Reduction Act (IRA) was signed into law. The IRA is expected to have a substantial impact on the construction industry, largely because of how it has created or expanded various clean-energy tax incentives. However, construction projects must satisfy several labor requirements to - [2022 Q4 tax calendar: Key deadlines for businesses and other employers](https://cpatrucking.com/2022-q4-tax-calendar-key-deadlines-for-businesses-and-other-employers/) - Here are some of the key tax-related deadlines affecting businesses and other employers during the fourth quarter of 2022. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. Contact us to ensure you’re meeting all applicable deadlines and to learn more about the filing requirements. Note: - [Separating your business from its real estate](https://cpatrucking.com/separating-your-business-from-its-real-estate/) - Does your business need real estate to conduct operations? Or does it otherwise hold property and put the title in the name of the business? You may want to rethink this approach. Any short-term benefits may be outweighed by the tax, liability and estate planning advantages of separating real estate ownership from the business. Tax - [Year-end tax planning ideas for your small business](https://cpatrucking.com/year-end-tax-planning-ideas-for-your-small-business/) - Now that Labor Day has passed, it’s a good time to think about making moves that may help lower your small business taxes for this year and next. The standard year-end approach of deferring income and accelerating deductions to minimize taxes will likely produce the best results for most businesses, as will bunching deductible expenses - [Seller-paid points: Can homeowners deduct them?](https://cpatrucking.com/seller-paid-points-can-homeowners-deduct-them/) - In its latest report, the National Association of Realtors (NAR) announced that July 2022 existing home sales were down but prices were up nationwide, compared with last year. “The ongoing sales decline reflects the impact of the mortgage rate peak of 6% in early June,” said NAR Chief Economist Lawrence Yun. However, he added that - [Is your income high enough to owe two extra taxes?](https://cpatrucking.com/is-your-income-high-enough-to-owe-two-extra-taxes/) - High-income taxpayers face two special taxes — a 3.8% net investment income tax (NIIT) and a 0.9% additional Medicare tax on wage and self-employment income. Here’s an overview of the taxes and what they may mean for you. 3.8% NIIT This tax applies, in addition to income tax, on your net investment income. The NIIT - [Inflation Reduction Act provisions of interest to small businesses](https://cpatrucking.com/inflation-reduction-act-provisions-of-interest-to-small-businesses/) - The Inflation Reduction Act (IRA), signed into law by President Biden on August 16, contains many provisions related to climate, energy and taxes. There has been a lot of media coverage about the law’s impact on large corporations. For example, the IRA contains a new 15% alternative minimum tax on large, profitable corporations. And the - [The Inflation Reduction Act: what’s in it for you?](https://cpatrucking.com/the-inflation-reduction-act-whats-in-it-for-you/) - You may have heard that the Inflation Reduction Act (IRA) was signed into law recently. While experts have varying opinions about whether it will reduce inflation in the near future, it contains, extends and modifies many climate and energy-related tax credits that may be of interest to individuals. Nonbusiness energy property Before the IRA was - [Manage your construction business … and your wealth](https://cpatrucking.com/manage-your-construction-business-and-your-wealth/) - Many contractors prioritize business financial management over personal wealth management. It’s an easy trap to fall into given how competitive the construction industry can be. Let’s discuss some ways to manage your wealth while you run your business. Separate the two Owning a construction company and managing personal wealth should be two separate but equal - [Self-employed? Build a nest egg with a solo 401(k) plan](https://cpatrucking.com/self-employed-build-a-nest-egg-with-a-solo-401k-plan/) - Do you own a successful small business with no employees and want to set up a retirement plan? Or do you want to upgrade from a SIMPLE IRA or Simplified Employee Pension (SEP) plan? Consider a solo 401(k) if you have healthy self-employment income and want to contribute substantial amounts to a retirement nest egg. - [Home sweet home: Do you qualify for office deductions?](https://cpatrucking.com/home-sweet-home-do-you-qualify-for-office-deductions/) - If you’re a business owner working from home or an entrepreneur with a home-based side gig, you may qualify for valuable home office deductions. But not everyone who works from home gets the tax break. Employees who work remotely can’t deduct home office expenses under current federal tax law. To qualify for a deduction, you - [Why an LLC might be the best choice of entity for your business](https://cpatrucking.com/why-an-llc-might-be-the-best-choice-of-entity-for-your-business/) - The business entity you choose can affect your taxes, your personal liability and other issues. A limited liability company (LLC) is somewhat of a hybrid entity in that it can be structured to resemble a corporation for owner liability purposes and a partnership for federal tax purposes. This duality may provide you with the best - [An “innocent spouse” may be able to escape tax liability](https://cpatrucking.com/an-innocent-spouse-may-be-able-to-escape-tax-liability/) - When a married couple files a joint tax return, each spouse is “jointly and severally” liable for the full amount of tax on the couple’s combined income. Therefore, the IRS can come after either spouse to collect the entire tax — not just the part that’s attributed to one spouse or the other. This includes - [Is your construction company a C corporation? Beware of “unreasonable” compensation](https://cpatrucking.com/is-your-construction-company-a-c-corporation-beware-of-unreasonable-compensation/) - Many construction businesses are structured as C corporations. If that’s the case for your company, you’re probably aware that C corporations usually prefer to classify payments to owners as tax-deductible wages because it lowers corporate taxes. However, as you’re likely also aware, if the IRS believes that an owner’s compensation is excessive and unreasonable, it - [Is your business required to report employee health coverage?](https://cpatrucking.com/is-your-business-required-to-report-employee-health-coverage/) - As you’re aware, certain employers are required to report information related to their employees’ health coverage. Does your business have to comply, and if so, what must be done? Basic rules Certain employers with 50 or more full-time employees (called “applicable large employers” or ALEs) must use Forms 1094-C and 1095-C to report the information - [Estimated tax payments: Who owes them and when is the next one due?](https://cpatrucking.com/estimated-tax-payments-who-owes-them-and-when-is-the-next-one-due/) - If you don’t have enough federal tax withheld from your paychecks and other payments, you may have to make estimated tax payments. This is the case if you receive interest, dividends, self-employment income, capital gains or other income. Here are the applicable rules for paying estimated tax without triggering the penalty for underpayment. When are - [5 common billing methods in the construction industry](https://cpatrucking.com/5-common-billing-methods-in-the-construction-industry/) - Your neighborhood ice cream shoppe no doubt operates under a simple fixed price, point-of-sale billing method. Construction companies don’t have it so easy. Because of the project-based, decentralized nature of construction work, contractors need to use various billing methods. Let’s review the five most common in case you might be overlooking an approach that could - [How to treat business website costs for tax purposes](https://cpatrucking.com/how-to-treat-business-website-costs-for-tax-purposes/) - These days, most businesses have websites. But surprisingly, the IRS hasn’t issued formal guidance on when website costs can be deducted. Fortunately, established rules that generally apply to the deductibility of business costs provide business taxpayers launching a website with some guidance as to the proper treatment of the costs. Plus, businesses can turn to - [Is your withholding adequate? Here’s how to check](https://cpatrucking.com/is-your-withholding-adequate-heres-how-to-check/) - When you filed your federal tax return this year, were you surprised to find you owed money? You might want to change your withholding so that this doesn’t happen again next year. You might even want to adjust your withholding if you got a big refund. Receiving a tax refund essentially means you’re giving the - [Three tax breaks for small businesses](https://cpatrucking.com/three-tax-breaks-for-small-businesses/) - Sometimes, bigger isn’t better: Your small- or medium-sized business may be eligible for some tax breaks that aren’t available to larger businesses. Here are some examples. 1. QBI deduction For 2018 through 2025, the qualified business income (QBI) deduction is available to eligible individuals, trusts and estates. But it’s not available to C corporations or - [How to avoid the early withdrawal tax penalty on IRA distributions](https://cpatrucking.com/how-to-avoid-the-early-withdrawal-tax-penalty-on-ira-distributions/) - When you take withdrawals from your traditional IRA, you probably know that they’re taxable. But there may be a penalty tax on early withdrawals depending on how old you are when you take them and what you do with the money. Important: Once you reach a certain age, you must start taking required minimum distributions - [Give your construction company’s bonding capacity a solid foundation](https://cpatrucking.com/give-your-construction-companys-bonding-capacity-a-solid-foundation-2/) - A high bonding capacity is a strategic objective of many construction businesses. Knowing you can get the necessary underwriting from your surety gives you the freedom to bid on jobs well suited to your strengths — not to mention bigger projects with greater potential for profitability. And this goal has become even more important since - [Give your construction company’s bonding capacity a solid foundation](https://cpatrucking.com/give-your-construction-companys-bonding-capacity-a-solid-foundation/) - A high bonding capacity is a strategic objective of many construction businesses. Knowing you can get the necessary underwriting from your surety gives you the freedom to bid on jobs well suited to your strengths — not to mention bigger projects with greater potential for profitability. And this goal has become even more important since - [Important considerations when engaging in a like-kind exchange](https://cpatrucking.com/important-considerations-when-engaging-in-a-like-kind-exchange/) - A business or individual might be able to dispose of appreciated real property without being taxed on the gain by exchanging it rather than selling it. You can defer tax on your gain through a “like-kind” or Section 1031 exchange. A like-kind exchange is a swap of real property held for investment or for productive - [The kiddie tax: Does it affect your family?](https://cpatrucking.com/the-kiddie-tax-does-it-affect-your-family/) - Many people wonder how they can save taxes by transferring assets into their children’s names. This tax strategy is called income shifting. It seeks to take income out of your higher tax bracket and place it in the lower tax brackets of your children. While some tax savings are available through this approach, the “kiddie - [Reviewing revenue recognition for construction companies](https://cpatrucking.com/reviewing-revenue-recognition-for-construction-companies/) - While many businesses handle sales in a single transaction, construction contracts often cover months or even years and include multiple payments. As you’re well aware, the longer-term nature of construction projects can prevent contractors from billing and collecting on a timely basis, which can lead to accounting, tax and cash flow complications. From an accounting - [The tax obligations if your business closes its doors](https://cpatrucking.com/the-tax-obligations-if-your-business-closes-its-doors/) - Sadly, many businesses have been forced to shut down recently due to the pandemic and the economy. If this is your situation, we can assist you, including taking care of the various tax responsibilities that must be met. Of course, a business must file a final income tax return and some other related forms for - [Interested in an EV? How to qualify for a powerful tax credit](https://cpatrucking.com/interested-in-an-ev-how-to-qualify-for-a-powerful-tax-credit/) - Sales and registrations of electric vehicles (EVs) have increased dramatically in the U.S. in 2022, according to several sources. However, while they’re still a small percentage of the cars on the road today, they’re increasing in popularity all the time. If you buy one, you may be eligible for a federal tax break. The tax - [How do taxes factor into an M&A transaction?](https://cpatrucking.com/how-do-taxes-factor-into-an-ma-transaction/) - Although merger and acquisition activity has been down in 2022, according to various reports, there are still companies being bought and sold. If your business is considering merging with or acquiring another business, it’s important to understand how the transaction will be taxed under current law. Stocks vs. assets From a tax standpoint, a transaction - [How disability income benefits are taxed](https://cpatrucking.com/how-disability-income-benefits-are-taxed/) - If you’ve recently begun receiving disability income, you may wonder how it’s taxed. The answer is: It depends. The key issue is: Who paid for the benefit? If the income is paid directly to you by your employer, it’s taxable to you just as your ordinary salary would be. (Taxable benefits are also subject to - [Is your cloud provider still meeting your company’s needs?](https://cpatrucking.com/is-your-cloud-provider-still-meeting-your-companys-needs/) - Like many businesses, yours has probably jumped aboard the cloud computing bandwagon … or “skywagon” as the case may be. How’s that going? Some business owners pay little to no attention to a cloud provider once the service is in place. Others realize, perhaps years later, that they’re not particularly satisfied with the costs, features - [2022 Q3 tax calendar: Key deadlines for businesses and other employers](https://cpatrucking.com/2022-q3-tax-calendar-key-deadlines-for-businesses-and-other-employers/) - Here are some of the key tax-related deadlines affecting businesses and other employers during the third quarter of 2022. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. Contact us to ensure you’re meeting all applicable deadlines and to learn more about the filing requirements. August - [Vehicle expenses: Can individual taxpayers deduct them?](https://cpatrucking.com/vehicle-expenses-can-individual-taxpayers-deduct-them/) - It’s not just businesses that can deduct vehicle-related expenses on their tax returns. Individuals also can deduct them in certain circumstances. Unfortunately, under current law, you may not be able to deduct as much as you could years ago. For years prior to 2018, miles driven for business, moving, medical and charitable purposes were potentially - [When hiring, don’t overlook older workers](https://cpatrucking.com/when-hiring-dont-overlook-older-workers/) - Is your business hiring? Many companies are — in fact, an employment report released by the U.S. Department of Labor earlier this month revealed that nonfarm payrolls increased by 390,000 in May, and the unemployment rate held steady at 3.6%. As the job market continues to feel the impact of “the Great Resignation,” the competition - [Businesses will soon be able to deduct more under the standard mileage rate](https://cpatrucking.com/businesses-will-soon-be-able-to-deduct-more-under-the-standard-mileage-rate/) - Business owners are aware that the price of gas is historically high, which has made their vehicle costs soar. The average nationwide price of a gallon of unleaded regular gas on June 17 was $5, compared with $3.08 a year earlier, according to the AAA Gas Prices website. A gallon of diesel averaged $5.78 a - [Five tax implications of divorce](https://cpatrucking.com/five-tax-implications-of-divorce/) - Are you in the early stages of divorce? In addition to the tough personal issues that you’re dealing with, several tax concerns need to be addressed to ensure that taxes are kept to a minimum and that important tax-related decisions are properly made. Here are five issues to consider if you’re in the process of - [Checking in on your accounts payable processes](https://cpatrucking.com/checking-in-on-your-accounts-payable-processes/) - Accounts payable is a critical area of concern for every business. However, as a back-office function, it doesn’t always get the attention it deserves. Once in place, accounts payable processes tend to get taken for granted. Following are some tips and best practices for improving your company’s approach. Be strategic Too often, businesses take a - [Is your corporation eligible for the dividends-received deduction?](https://cpatrucking.com/is-your-corporation-eligible-for-the-dividends-received-deduction/) - There’s a valuable tax deduction available to a C corporation when it receives dividends. The “dividends-received deduction” is designed to reduce or eliminate an extra level of tax on dividends received by a corporation. As a result, a corporation will typically be taxed at a lower rate on dividends than on capital gains. Ordinarily, the - [Your estate plan: Don’t forget about income tax planning](https://cpatrucking.com/your-estate-plan-dont-forget-about-income-tax-planning/) - As a result of the current estate tax exemption amount ($12.06 million in 2022), many people no longer need to be concerned with federal estate tax. Before 2011, a much smaller amount resulted in estate plans attempting to avoid it. Now, because many estates won’t be subject to estate tax, more planning can be devoted - [Simple ways to make strategic planning a reality](https://cpatrucking.com/simple-ways-to-make-strategic-planning-a-reality/) - Every business wants to engage in strategic planning that will better position the company to sell more to current customers — and perhaps expand into new markets. Yet the term “strategic planning” is so broad. It’s easy to get overwhelmed by all the possible directions you could go in and have a hard time choosing - [Help when needed: Apply the research credit against payroll taxes](https://cpatrucking.com/help-when-needed-apply-the-research-credit-against-payroll-taxes/) - Here’s an interesting option if your small company or start-up business is planning to claim the research tax credit. Subject to limits, you can elect to apply all or some of any research tax credits that you earn against your payroll taxes instead of your income tax. This payroll tax election may influence some businesses - [Social Security benefits: Do you have to pay tax on them?](https://cpatrucking.com/social-security-benefits-do-you-have-to-pay-tax-on-them/) - Some people who begin claiming Social Security benefits are surprised to find out they’re taxed by the federal government on the amounts they receive. If you’re wondering whether you’ll be taxed on your Social Security benefits, the answer is: It depends. The taxation of Social Security benefits depends on your other income. If your income - [Dodge the tumult with a buy-sell agreement](https://cpatrucking.com/dodge-the-tumult-with-a-buy-sell-agreement/) - Businesses with multiple owners generally benefit from a variety of viewpoints, diverse experience and strategic areas of specialization. However, there’s a major risk: the company can be thrown into tumult if one of the owners decides, or is compelled by circumstances, to leave. A logical and usually effective solution is to create and implement a - [Calculating corporate estimated tax](https://cpatrucking.com/calculating-corporate-estimated-tax/) - The next quarterly estimated tax payment deadline is June 15 for individuals and businesses so it’s a good time to review the rules for computing corporate federal estimated payments. You want your business to pay the minimum amount of estimated taxes without triggering the penalty for underpayment of estimated tax. Four methods The required installment of - [Is it a good time for a Roth conversion?](https://cpatrucking.com/is-it-a-good-time-for-a-roth-conversion/) - The downturn in the stock market may have caused the value of your retirement account to decrease. But if you have a traditional IRA, this decline may provide a valuable opportunity: It may allow you to convert your traditional IRA to a Roth IRA at a lower tax cost. Traditional vs. Roth Here’s what makes - [3 summertime marketing ideas for 2022](https://cpatrucking.com/3-summertime-marketing-ideas-for-2022/) - You can’t stop it; you can only hope to use it to your best business advantage. That’s right, summer is on the way and, with it, a variety of seasonal marketing opportunities for small to midsize companies. Here are three ideas to consider. 1. Support summer camps and local sports Soon, millions of young people - [Partners may have to report more income on tax returns than they receive in cash](https://cpatrucking.com/partners-may-have-to-report-more-income-on-tax-returns-than-they-receive-in-cash/) - Are you a partner in a business? You may have come across a situation that’s puzzling. In a given year, you may be taxed on more partnership income than was distributed to you from the partnership in which you’re a partner. Why does this happen? It’s due to the way partnerships and partners are taxed. - [The ins and outs of Series EE savings bond taxation](https://cpatrucking.com/the-ins-and-outs-of-series-ee-savings-bond-taxation/) - Many people own Series E and Series EE bonds that were bought many years ago. They may rarely look at them or think about them except on occasional trips to a file cabinet or safe deposit box. One of the main reasons for buying U.S. savings bonds (such as Series EE bonds) is the fact - [Supply chain software can help digitize the dilemma](https://cpatrucking.com/supply-chain-software-can-help-digitize-the-dilemma/) - It’s a dilemma that’s been in the news and on business owners’ minds for a while now. The COVID-19 pandemic, along with other world events, have strained supply chains both global and national. And, throwing gasoline on the fire, cyberattacks have threatened to further disrupt the smooth flow of materials, products and fuel. These heightened - [Businesses: Prepare for the lower 1099-K filing threshold](https://cpatrucking.com/businesses-prepare-for-the-lower-1099-k-filing-threshold/) - Businesses should be aware that they may be responsible for issuing more information reporting forms for 2022 because more workers may fall into the required range of income to be reported. Beginning this year, the threshold has dropped significantly for the filing of Form 1099-K, “Payment Card and Third-Party Network Transactions.” Businesses and workers in - [IRA charitable donations: An alternative to taxable required distributions](https://cpatrucking.com/ira-charitable-donations-an-alternative-to-taxable-required-distributions/) - Are you a charitably minded individual who is also taking distributions from a traditional IRA? You may want to consider the tax advantages of making a cash donation to an IRS-approved charity out of your IRA. When distributions are taken directly out of traditional IRAs, federal income tax of up to 37% in 2022 will - [Could your business benefit from a PEO?](https://cpatrucking.com/could-your-business-benefit-from-a-peo/) - Keeping up with employment regulations and health care benefits can be a struggle for many small to midsize businesses. One potential solution is engaging a professional employer organization (PEO). PEOs employ experts who understand the minutiae of many HR functions. Moreover, these firms can handle difficult, recurring tasks such as managing employment taxes and administering - [Inflation enhances the 2023 amounts for Health Savings Accounts](https://cpatrucking.com/inflation-enhances-the-2023-amounts-for-health-savings-accounts/) - The IRS recently released guidance providing the 2023 inflation-adjusted amounts for Health Savings Accounts (HSAs). High inflation rates will result in next year’s amounts being increased more than they have been in recent years. HSA basics An HSA is a trust created or organized exclusively for the purpose of paying the “qualified medical expenses” of - [Caring for an elderly relative? You may be eligible for tax breaks](https://cpatrucking.com/caring-for-an-elderly-relative-you-may-be-eligible-for-tax-breaks/) - Taking care of an elderly parent or grandparent may provide more than just personal satisfaction. You could also be eligible for tax breaks. Here’s a rundown of some of them. 1. Medical expenses. If the individual qualifies as your “medical dependent,” and you itemize deductions on your tax return, you can include any medical expenses - [Tighten up billing and collections to mitigate economic uncertainties](https://cpatrucking.com/tighten-up-billing-and-collections-to-mitigate-economic-uncertainties/) - While many economic indicators remain strong, the U.S. economy is still giving business owners plenty to think about. The nation’s gross domestic product unexpectedly contracted in the first quarter of 2022. Rising inflation is on everyone’s mind. And global supply chain issues persist, spurred on by events such as the COVID-19 lockdowns in China and - [Businesses may receive notices about information returns that don’t match IRS records](https://cpatrucking.com/businesses-may-receive-notices-about-information-returns-that-dont-match-irs-records/) - The IRS has begun mailing notices to businesses, financial institutions and other payers that filed certain returns with information that doesn’t match the agency’s records. These CP2100 and CP2100A notices are sent by the IRS twice a year to payers who filed information returns that are missing a Taxpayer Identification Number (TIN), have an incorrect - [Valuable gifts to charity may require an appraisal](https://cpatrucking.com/valuable-gifts-to-charity-may-require-an-appraisal/) - If you donate valuable items to charity, you may be required to get an appraisal. The IRS requires donors and charitable organizations to supply certain information to prove their right to deduct charitable contributions. If you donate an item of property (or a group of similar items) worth more than $5,000, certain appraisal requirements apply. - [No parking: Unused compensation reductions can’t go to health FSA](https://cpatrucking.com/no-parking-unused-compensation-reductions-cant-go-to-health-fsa/) - Among the many lasting effects of the pandemic is that some businesses are allowing employees to continue working from home — even now that the most acute phases of the public health crisis seem to be over in some places. This decision is raising some interesting questions about fringe benefits. For example, in IRS Information - [Want to turn a hobby into a business? Watch out for the tax rules](https://cpatrucking.com/want-to-turn-a-hobby-into-a-business-watch-out-for-the-tax-rules/) - Like many people, you may have dreamed of turning a hobby into a regular business. You won’t have any tax headaches if your new business is profitable. But what if the new enterprise consistently generates losses (your deductions exceed income) and you claim them on your tax return? You can generally deduct losses for expenses - [The tax mechanics involved in the sale of trade or business property](https://cpatrucking.com/the-tax-mechanics-involved-in-the-sale-of-trade-or-business-property/) - There are many rules that can potentially apply to the sale of business property. Thus, to simplify discussion, let’s assume that the property you want to sell is land or depreciable property used in your business, and has been held by you for more than a year. (There are different rules for property held primarily - [Businesses looking for outside investors need a sturdy pitch deck](https://cpatrucking.com/businesses-looking-for-outside-investors-need-a-sturdy-pitch-deck/) - Is your business ready to seek funding from outside investors? Perhaps you’re a start-up that needs money to launch as robustly as possible. Or maybe your company has been operating for a while and you want to pivot in a new direction or just take it to the next level. Whatever the case may be, - [Tax considerations when adding a new partner at your business](https://cpatrucking.com/tax-considerations-when-adding-a-new-partner-at-your-business/) - Adding a new partner in a partnership has several financial and legal implications. Let’s say you and your partners are planning to admit a new partner. The new partner will acquire a one-third interest in the partnership by making a cash contribution to it. Let’s further assume that your bases in your partnership interests are - [Thinking about converting your home into a rental property?](https://cpatrucking.com/thinking-about-converting-your-home-into-a-rental-property/) - In some cases, homeowners decide to move to new residences, but keep their present homes and rent them out. If you’re thinking of doing this, you’re probably aware of the financial risks and rewards. However, you also should know that renting out your home carries potential tax benefits and pitfalls. You’re generally treated as a - [Offering summer job opportunities? Double-check child labor laws](https://cpatrucking.com/offering-summer-job-opportunities-double-check-child-labor-laws/) - Spring has sprung — and summer isn’t far off. If your business typically hires minors for summer jobs, now’s a good time to brush up on child labor laws. In News Release No. 22-546-DEN, the U.S. Department of Labor’s Wage and Hour Division (WHD) recently announced that it’s stepping up efforts to identify child labor - [Tax issues to assess when converting from a C corporation to an S corporation](https://cpatrucking.com/tax-issues-to-assess-when-converting-from-a-c-corporation-to-an-s-corporation/) - Operating as an S corporation may help reduce federal employment taxes for small businesses in the right circumstances. Although S corporations may provide tax advantages over C corporations, there are some potentially costly tax issues that you should assess before making a decision to switch. Here’s a quick rundown of the most important issues to - [Once you file your tax return, consider these 3 issues](https://cpatrucking.com/once-you-file-your-tax-return-consider-these-3-issues/) - The tax filing deadline for 2021 tax returns is April 18 this year. After your 2021 tax return has been successfully filed with the IRS, there may still be some issues to bear in mind. Here are three considerations: 1. You can throw some tax records away now You should hang onto tax records related - [AI for small to midsize businesses isn’t going away](https://cpatrucking.com/ai-for-small-to-midsize-businesses-isnt-going-away/) - Artificial intelligence (AI) has made great inroads into certain sectors of the U.S. economy. However, it hasn’t reached many small to midsize businesses (SMBs) in a major way … yet. In 2021, AI analysis firm Unsupervised published a survey of 520 SMB owners that found 48% of them still found AI too cost prohibitive. Forty - [Fully deduct business meals this year](https://cpatrucking.com/fully-deduct-business-meals-this-year/) - The federal government is helping to pick up the tab for certain business meals. 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In any case, the end of one year and the beginning of another is always an optimal time to look back on the preceding 12 calendar months and ask a deceptively simple - [2022 Q1 tax calendar: Key deadlines for businesses and other employers](https://cpatrucking.com/2022-q1-tax-calendar-key-deadlines-for-businesses-and-other-employers-2/) - Here are some of the key tax-related deadlines affecting businesses and other employers during the first quarter of 2022. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. Contact us to ensure you’re meeting all applicable deadlines and to learn more about the filing requirements. January - [There’s a deduction for student loan interest … but do you qualify for it?](https://cpatrucking.com/theres-a-deduction-for-student-loan-interest-but-do-you-qualify-for-it/) - If you’re paying back college loans for yourself or your children, you may wonder if you can deduct the interest you pay on the loans. 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Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. Contact us to ensure you’re meeting all applicable deadlines and to learn more about the filing requirements. January ## Pages - [Home](https://cpatrucking.com/) - As a Trucking Specialist, Emil Estafanous, CPA provides you with a reliable and accurate one-stop source for all your accounting, bookkeeping, tax, payroll and financial needs. In addition to customizing his services to meet your needs, Emil Estafanous, CPA offers you a variety of options, which include business and entity selections and formation, business valuation, - [2023 Norwalk Business Hall of Fame](https://cpatrucking.com/2023-norwalk-business-hall-of-fame/) - Emil Estafanous, CPA has been selected four years in a row for the Best of Norwalk Awards for Tax & Accounting Services and now qualifies for the 2023 Norwalk Business Hall of Fame Emil Estafanous, CPA Receives 2023 Best of Norwalk AwardNorwalk Award Program Honors the AchievementNORWALK March 20, 2023 — Emil Estafanous, CPA has - [Contact](https://cpatrucking.com/contact/) - You can reach us at any time We know how busy you are – and how you often need an answer ASAP about taxes, finances, investments or business decisions. That’s why Emil Estafanous makes himself so accessible. Contact the office now for a prompt (if not immediate) response. Los Angeles 12501 Imperial Highway Suite 115, - [Tax Preparation Service](https://cpatrucking.com/tax-preparation/) - Tax Preparation Service Preparing your own income tax return can be a task that leaves you with more questions than answers. According to a study released by the US Government’s General Accounting Office last year, most taxpayers (77% of 71 million) believe they benefited from using a professional tax preparer.Whether we like it or not, - [Tax Planning services](https://cpatrucking.com/tax-planning/) - Tax Planning Planning is the key to successfully and legally reducing your tax liability. We go beyond tax compliance and proactively recommend tax saving strategies to maximize your after-tax income.We make it a priority to enhance our mastery of the current tax law, complex tax code, and new tax regulations by attending frequent tax seminars.Businesses - [2019 Best of Norwalk Award](https://cpatrucking.com/2019-best-of-norwalk-award/) - Emil Estafanous, CPA Receives 2019 Best of Norwalk Award Norwalk Award Program Honors the AchievementNORWALK March 20, 2019 — Emil Estafanous, CPA has been selected for the 2019 Best of Norwalk Award in the Tax & Accounting Services category by the Norwalk Award Program.Each year, the Norwalk Award Program identifies companies that we believe have - [Payroll Services](https://cpatrucking.com/payroll/) - Payroll When it comes to paying employees, laws and the IRS have made the payroll function a time consuming nightmare for the small business owner.Small business owners spend an average of eight hours a month performing payroll functions. 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We take care of your books for you, so you can get back to the job of running your business and generating profits!Each month or quarter we’ll do the following things for you…Reconcile your - [Services](https://cpatrucking.com/services/) - Tax and Financial Planning Services My accounting corporation, Emil Estafanous, CPA, provides an integrated suite of tax preparation, tax planning, tax advocacy, payroll, QuickBooks mentoring and financial planning services for businesses and individuals. In addition to being one of the Los Angeles area’s leading CPAs, I am also a seasoned business owner, futures trader, and real estate and stock investor — experience that enhances my - [Privacy Policy](https://cpatrucking.com/privacy-policy/) - This privacy policy has been compiled to better serve those who are concerned with how their ‘Personally Identifiable Information’ (PII) is being used online. PII, as described in US privacy law and information security, is information that can be used on its own or with other information to identify, contact, or locate a single person, - [Business Owners](https://cpatrucking.com/business-owners/) - Business Owners How do I know whether I have what it takes to run my own business?Before starting out, list your reasons for wanting to go into business. Some of the most common reasons for starting a business include wanting to be self-employed, wanting financial and creative independence, and wanting to maximize your skills and - [Strategic Business Planning](https://cpatrucking.com/strategic-business-planning/) - Strategic Business Planning A Strategic Business Plan is much more than a tool to obtain financing. If you still have all you plans and ideas locked up inside your head… preparing a strategic plan helps you clarify your company’s direction, ensures your key leaders are all “on the same page”, and keeps both management and - [US Commerce Association](https://cpatrucking.com/us-commerce-association/) - Emil Estafanous CPA Acctng Receives 2009 Best of Norwalk Award Press Release: June 8, 2009 U.S. Commerce Association’s Award Plaque Honors the AchievementWASHINGTON D.C., June 8, 2009 — Emil Estafanous CPA Acctng has been selected for the 2009 Best of Norwalk Award in the Auditing Services category by the U.S. Commerce Association (USCA).The USCA “Best of Local Business” - [The Refund Guru](https://cpatrucking.com/the-refund-guru/) - Loans and credit too tight? "Cash in" Old Tax Returns Instead Operate a C-Corporation? Own real estate? Make investments? Pay payroll taxes? Los Angeles CPA Emil Estafanous uses his accounting skills to review a taxpayer’s 5 past years of returns, restructure income and expenses, and refile the return to get a tax refund. Says one - [Six Tips on Gambling Income and Losses](https://cpatrucking.com/six-tips-on-gambling-income-and-losses/) - Like to Gamble? Whether you roll the dice, play cards or bet on the ponies, all your winnings are taxable. The IRS offers these six tax tips for the casual gambler 1. Gambling income includes winnings from lotteries, raffles, horse races and casinos. It also includes cash and the fair market value of prizes you receive, - [Pay Your IRS Bill](https://cpatrucking.com/pay-your-irs-bill/) - How do you pay your IRS tax bill? How do I pay now?Use a safe and convenient electronic payment option or send your payment. Pay by:•Debit or credit card•Electronic funds transfer•Check or money orderWhat if I can’t pay now?Learn about IRS programs designed to help you meet your tax obligations without causing additional hardship:•Installment Agreement-Allows - [Accounting Fees](https://cpatrucking.com/accounting-fees/) - Keep your accounting fees as low as possible. The following strategies will help to reduce your accounting fees:Contact us for assistance before you complete a financial transaction. Planning opportunities that could save you money are usually very limited once a transaction is signed and sealed.From time to time, we will send you information that we - [2008 Peer Review](https://cpatrucking.com/2008-peer-review/) - 2008 Peer Review - [2009 Peer Review](https://cpatrucking.com/2009-peer-review/) - 2009 Peer Review - [2011 Peer Review](https://cpatrucking.com/2011-peer-review/) - 2011 Peer Review - [2012 Peer Review](https://cpatrucking.com/2012-peer-review/) - 2012 Peer Review - [2015 Peer Review](https://cpatrucking.com/2015-peer-review/) - 2015 Peer Review - [Testimonials](https://cpatrucking.com/testimonials/) - Testimonials Emil is fast, professional, and a pleasure to work with.I presented him with 4-years of personal tax issues including real-estate investment, foreign income, garnishment, and a tax-lien and he has cleaned-up the mess. I feel that I have finally made peace with the FTB and IRS!Andy B————————————————————–Emil Estafanous is second to none.I don’t know - [Two-Time Award Winner](https://cpatrucking.com/two-time-award-winner/) - Emil Estafanous, CPA Receives 2010 Best of Norwalk Award U.S. Commerce Association’s Award Plaque Honors the AchievementNEW YORK, NY, May 18, 2010 — For the second consecutive year, Emil Estafanous, CPA has been selected for the 2010 Best of Norwalk Award in the Tax & Accounting Services category by the U.S. Commerce Association (USCA).The USCA - [2014 Best of Norwalk Award](https://cpatrucking.com/2014-best-of-norwalk-award/) - Emil Estafanous, CPA Receives 2014 Best of Norwalk Award! Six Year Winner! Norwalk Award Program Honors the AchievementNORWALK June 11, 2014 — Emil Estafanous, CPA has been selected for the 2014 Best of Norwalk Award in the Payroll Preparation Services category by the Norwalk Award Program.Each year, the Norwalk Award Program identifies companies that we - [Track Record](https://cpatrucking.com/track-record/) - [Sample Page](https://cpatrucking.com/sample-page/) - This is an example page. It's different from a blog post because it will stay in one place and will show up in your site navigation (in most themes). Most people start with an About page that introduces them to potential site visitors. It might say something like this: Hi there! I'm a bike messenger - [Team](https://cpatrucking.com/team/) - Our Team Mable Howell GENERAL MANAGER Mable Howell GENERAL MANAGER Jane Doe UX/UI DESIGNER Jane Doe UX/UI DESIGNER John Doe ACCOUNTANT John Doe ACCOUNTANT - [Sample Page](https://cpatrucking.com/sample-page-2/) - This is an example page. It's different from a blog post because it will stay in one place and will show up in your site navigation (in most themes). Most people start with an About page that introduces them to potential site visitors. It might say something like this: Hi there! I'm a bike messenger ## My Templates - [Default Kit](https://cpatrucking.com/?elementor_library=default-kit-2) - [Default Kit](https://cpatrucking.com/?elementor_library=default-kit) - [page](https://cpatrucking.com/?elementor_library=page) - Our Services Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo. UI-UX Design At vero eos et accusam et justo duo dolores et ea rebum. Stet gubergren no sea takimata sanctus. Development At vero eos et accusam et justo duo dolores et ea rebum. Stet gubergren no sea takimata sanctus. 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