Anomaly CPA

Can Trump and Musk Fix the IRS? Here's What You Need To Know The IRS has a problem: outdated processes. They still rely on paper, send unnecessary letters, and offer limited online tools for taxpayers. It’s 2024—this system needs a major upgrade. Here’s what needs to change: Reduce Paper Dependency: The IRS still handles a massive volume of paper forms, slowing down processes and increasing errors. Eliminate Unnecessary Letters: Many taxpayers receive letters that create confusion instead of clarity. Expand Online Options: Limited digital tools make it harder for taxpayers to interact efficiently with the IRS. What if DOGE could lead the way? With its innovative community-driven approach, there’s potential to modernize the IRS and bring real efficiency to taxpayers everywhere. Let’s reimagine what the IRS could look like in the future. What’s your take on DOGE stepping into this space? Let us know in the comments!

The Hidden Tax Rules of Thanksgiving Did you know that your Thanksgiving table could have a hidden cost? Some states tax cranberry sauce, but others don’t—and it all comes down to sugar. Here’s the twist: Added Sugar = Candy: In many states, foods with added sugar are classified as candy, making cranberry sauce taxable. State-by-State Variations: Depending on where you live, the cranberry sauce on your table could either be tax-free or come with an extra cost. The Bigger Picture: Quirky tax rules like this highlight how even your holiday favorites can be subject to surprising state laws. Now you’ve got a fun Thanksgiving fact to share with your family—because even tax rules can spark some table talk!

This Is Why Flat Taxes Fail Flat tax systems may sound simple and fair—everyone pays the same percentage, right? But here’s the truth: they hit low- and middle-income earners the hardest. Here’s why they fail: Disproportionate Impact: For someone earning $100,000, a 25% tax could mean cutting into essential expenses. For someone earning $1,000,000, it’s just a smaller slice of their disposable income. Economic Inequality: Flat taxes don’t account for the financial realities of lower-income earners, widening the wealth gap. Behavioral Incentives: Progressive tax systems influence spending, saving, and investing behaviors that benefit the broader economy. While the flat tax debate continues, understanding its real-world impact is key. Curious about how tax systems affect you or your business? Drop us a DM to discuss more!

If you’re a business owner operating as a partnership or S Corporation, there’s a powerful strategy you might not know about: the Pass-Through Entity (PTE) election. Here’s why it matters: Bypass the SALT Cap: The SALT cap, introduced in 2017, limits your state and local tax deductions at the personal level. With the PTE election, you can shift those taxes to the business level, avoiding the cap altogether. Boost Federal Tax Deductions: By paying state taxes at the business level, you gain a federal deduction, which could significantly lower your overall tax liability. Year-End Action: This is a strategy you must act on before the year ends, so don’t wait too long to explore if it’s right for you. This approach is an excellent way to optimize your tax strategy and save more of your hard-earned money. Curious if the PTE election is right for your business? Ask your tax advisor or drop us a DM to learn more.

Maximize Tax-Free Savings—Here’s How Did you know you can roll over funds from an IRA to an HSA account? This one-time strategy allows you to move up to the annual limit tax- and penalty-free. Here’s how it works: How It Helps: If you’re short on cash for an HSA contribution but have medical expenses coming up, this strategy lets you use IRA funds without penalties. Triple Tax Advantage: HSA accounts are powerful because they allow for tax-free contributions, growth, and withdrawals for qualified expenses. Long-Term Growth: By rolling funds into your HSA, you can maximize tax-free compounding and even reimburse yourself later without penalties. This unique rollover is a game-changer for anyone looking to optimize their health savings and tax planning. Have questions about this strategy? Drop us a DM.

Retire smarter, not harder—here’s how… Many contribute to pre-tax accounts like 401(k)s and IRAs for immediate tax benefits, but it's crucial to consider the long-term implications. Starting at age 73, the IRS mandates required minimum distributions (RMDs) from these accounts, which can significantly impact your tax situation, especially if future tax rates rise. Here’s what you need to know: Required Minimum Distributions (RMDs): At age 73, the IRS requires withdrawals from pre-tax accounts, potentially triggering higher taxes if rates increase. Roth Conversion Benefits: Converting pre-tax funds to Roth accounts lets your money grow tax-free and eliminates future RMD obligations. Super Catch-Up Contributions: In 2025, individuals aged 60-63 can contribute an additional $11,250 to their 401(k), boosting retirement savings opportunities. It’s essential to weigh the benefits of tax-deferred growth against the risk of paying higher taxes in retirement. Consulting with a financial advisor can help tailor a strategy that aligns with your financial goals. Have questions about your retirement plan? Drop us a DM—we’re here to help!

Lower Your Taxes Before Year-End As an S Corp owner, year-end planning is critical to avoid IRS penalties and maximize your tax savings. Here’s what you need to do: Pay Reasonable Compensation: The IRS requires S Corp owners to pay themselves a salary that aligns with industry standards for the work performed. Impact on QBI Deduction: Your salary affects your Qualified Business Income (QBI) deduction, which can reduce your taxable income. Minimize Payroll Taxes: Striking the right balance in your compensation helps manage your FICA (Social Security and Medicare) taxes. Deadline Alert: Adjustments must be made by December 31st to comply with IRS regulations. Pro Tip: Work with your accountant to determine the right compensation level to stay compliant and maximize savings. Need help with S Corp tax strategies? Drop us a message or comment below, and we’ll guide you through it! #taxes #taxstrategy #taxstrategist #cpa

Most businesses fail because of THIS… Effective cash flow management is crucial for small business success. Relying solely on your bank balance can lead to financial blind spots, as it doesn't account for upcoming obligations or future needs. For instance, the median small business holds an average daily cash balance of $12,100, which equates to just 27 cash buffer days. Here’s why that’s a problem:  - It ignores future obligations like loan repayments or vendor invoices; - It leads to unexpected cash shortages and financial stress; - It stunts your ability to grow and seize new opportunities. The solution? Cash flow forecasting. By planning ahead, you can predict upcoming financial needs, avoid surprises, and keep your business thriving for years to come. Don't wait until it's too late! Click the link in our bio to learn how we can help you create a roadmap for financial clarity.

Your Business Can Get $7,500 Back! Here’s how If you’re a small business owner, here’s a tax tip you don’t want to miss! Put a hybrid or electric vehicle in service before the year ends, and you could qualify for a $7,500 tax credit — without any income cap. Yes, even the wealthiest business owners qualify! Here’s why: Business tax rules allow you to claim this credit regardless of your income, unlike personal purchases where the credit phases out as your income rises. Plus, you can combine this with depreciation benefits, creating even more savings! Thinking of going green? Drop us a DM and share this with someone who may need it!

The Business Metric is going to-save you thousands of dollars, here’s how Gross margin—one of the most overlooked yet essential metrics for small business owners. It’s not just a number; it’s a clear picture of how much your business keeps after covering direct costs. Ignoring it? You might be missing out on maximizing your profits, especially as inflation impacts costs. Tracking gross margin helps you make better hiring and pricing decisions, which ultimately determines how much you take home. Pro tip: Set a monthly target and keep an eye on it—this one metric can drive long-term growth! Ready to dive deeper? Reach out through the link in our bio to learn more  #BusinessTips #SmallBusiness #GrossMargin #Profitability #BusinessStrategy