Can PTET Elections Still Benefit You Post-SALT Cap Changes?
The PTET election’s value has shifted with the SALT cap increase to $40,000, prompting a need for careful consideration among business owners. Depending on income levels and state tax situations, some may benefit from continuing, while others might find it unnecessary. Individual circumstances now dictate the relevance of the election.
Accountable Plan Rules Every S Corporation Owner Needs
This article discusses the importance of an accountable plan for S corporation owner-employees in light of recent tax law changes that disallow unreimbursed business expenses. It outlines requirements for reimbursement plans, including substantiation and business connection, and highlights how proactive tax planning can save money by ensuring compliance and maximizing deductions.
Charitable Giving Changed in 2026: The 0.5% Floor and Why Bunching Matters More Now
Recent changes to tax laws affect charitable contributions, notably introducing a 0.5% floor for itemized deductions. Taxpayers may benefit from bunching donations into a single year to surpass this threshold. A new deduction for non-itemizers and a future credit for educational donations also emerge, creating new strategic giving opportunities.
The 2026 Tax Changes Business Owners Are Still Missing: A Mid-Year Checkpoint
The 2025 tax law has layered provisions affecting business owners, some applicable immediately and others introduced in 2026 and beyond. Key changes include bonus depreciation, R&D expensing, and new reporting requirements. Business owners must adapt to these shifts, particularly around interest deductions and payroll reporting, before deadlines arise at year-end.
Understanding Charitable Remainder Trust Basics
Charitable remainder trusts (CRTs) are irrevocable trusts that provide income to beneficiaries for a specific period before donating remaining assets to charity. They offer financial benefits, such as tax deductions and income stability, while supporting philanthropic goals. Understanding CRT types and IRS rules is vital for effective estate planning.
The Great Wealth Transfer: What to Expect
The Great Wealth Transfer is on the horizon, poised to reshape financial landscapes. An estimated $68 trillion will change hands. This monumental shift will occur as Baby Boomers pass their wealth to younger generations. This transfer is the largest in history, affecting real estate, investments, and family businesses. It presents both opportunities and challenges for […]
Understanding Safe Harbor Plans for 401(k)s
Safe Harbor 401(k) plans simplify retirement savings for employers and employees by automatically complying with IRS nondiscrimination rules. They require mandatory contributions, either matching or non-elective, ensuring all eligible employees benefit. These plans enhance employee satisfaction and retention, making them particularly appealing for small businesses seeking to simplify administration while attracting talent.
Bonus Depreciation Election Process: What You Need to Know
Bonus Depreciation offers businesses a substantial tax reduction, allowing immediate expensing of eligible property costs. The TCJA increased this benefit to 100% but requires careful consideration of future earnings and cash flow needs. Companies may opt out for better long-term tax stability, making informed decisions with tax advisors essential.
Understanding Beginner Business Tax Breaks
Navigating the world of business taxes can be daunting for beginners. Understanding tax breaks is crucial for new business owners. These breaks can significantly reduce your tax burden. Tax breaks come in various forms, such as deductions and credits. Each offers unique benefits. Knowing the difference is key to maximizing savings. Small business owners can […]
Understanding the Basics of Deferred Salary Plans
Deferred salary plans are a strategic financial tool. They allow employees to postpone receiving part of their salary. This can be beneficial for tax planning and retirement savings. Understanding how deferred compensation works is crucial. It involves complex decisions about income, taxes, and future financial security. Employees and employers alike must weigh the benefits and […]