Business Advisory and Accounting Partners

🚀 Don't Miss Out: Maximize the QBI Deduction Before It's Gone! 💰 Attention all eligible businesses! The qualified business income (QBI) deduction is a game-changer for tax savings, but it's set to vanish after 2025. Act now to make the most of this opportunity while it lasts. 🔍 What is the QBI deduction? -Up to 20% deduction for qualified income from sole proprietorships or pass-through entities like partnerships and S corporations. -Defined as income and gains from eligible businesses, minus related deductions. 💡 Key points: -Deduction limitations kick in at higher income levels. -For SSTBs, phaseout begins at specific income thresholds. -Consider aggregating businesses for maximum deduction benefits. 💼 Planning ahead: -Utilize first-year depreciation deductions wisely. -Act now to maximize deductions for 2024 and 2025. 🤝 Let us help you navigate these complexities and maximize your tax savings. Don't wait until it's too late! 💼✨ #TaxSavings #QBI #BusinessDeductions #BusinessAdvisory

🔍 Tax Tip for Business Owners 🔍 As a business owner, you can generally deduct the ordinary and necessary costs you incur to run your business on your tax returns. But here’s the catch: You must be able to prove that you're operating a legitimate business with the intent to make a profit. 📉 In a recent case, the U.S. Tax Court denied a taxpayer’s business expense deductions for writing because she failed to demonstrate a profit motive. She didn't keep formal records, lacked a business plan, and even claimed personal expenses like vacations, clothing, food, home improvements, and vehicle costs as business deductions. Over three years, she reported just $1,045 in income but claimed a whopping $187,012 in expenses! Key Takeaways: 1) Keep detailed records. 2) Have a solid business plan. 3) Deduct only legitimate business expenses. 💼 Treat your business like an investment, not a hobby, to maximize your tax benefits and avoid costly mistakes! #TaxTips #SmallBusiness #BusinessExpenses #CPAAdvice #BusinessAdvisory...

🚗 Attention Business Owners! 🚗 Did you know that while you can generally deduct ordinary and necessary business expenses, poor record-keeping could cost you? Take vehicle expenses, for example. To deduct these costs, you need detailed and contemporaneous records showing the percentage of business use. One store owner recently learned this the hard way after claiming 100% of gas costs for three vehicles. His records were vague, based on estimates, and lacked a mileage log. As a result, the IRS denied most of the deduction, and the U.S. Tax Court backed them up. 📄✖️ 🔍 The takeaway: Without accurate, substantiated records, your deductions might not hold up under scrutiny. Avoid costly mistakes—keep a detailed mileage log and ensure all business expenses are properly documented! 💡 Need help staying tax-efficient and organized? Let’s talk! #TaxTips #BusinessOwner #TaxDeductions #TaxEfficiency #MileageLog #BusinessAdvisory

🌟 Happy New Year from All of Us at Business Advisory and Accounting Partners! 🌟 As we welcome 2025, we want to take a moment to express our heartfelt gratitude for your trust and partnership. It’s an honor to be a part of your journey, and we look forward to supporting you in achieving your goals in the year ahead. May this year bring you: ✨ Prosperity in your business ✨ Joy in your personal life ✨ Health and happiness in abundance Here’s to a bright and successful 2025, filled with new opportunities and continued growth. Cheers to you and all that you will accomplish! 🥂

🌟 Attention Small Business Owners: Maximize Your Health Care Strategy with HSAs! 🌟 Managing health care costs for yourself and your employees can be overwhelming, but there’s a smart solution to lighten the load: Health Savings Accounts (HSAs). Not only do HSAs help cover medical expenses, but they also offer incredible tax advantages. 💸 Here’s why you should consider HSAs: ✅ Tax-Advantaged Contributions: Your contributions are deductible, and employer contributions are tax-free. ✅ Tax-Free Growth: Earnings within the HSA aren’t taxed, so your funds grow year after year. ✅ Tax-Free Distributions: Withdrawals for qualified medical expenses are tax-free. ✅ Payroll Tax Savings: Employers save on payroll taxes when employees contribute via payroll deductions. 2025 Updates You Should Know: ➡️ High-Deductible Health Plan Minimums: $1,650 (self-only); $3,300 (family). ➡️ Contribution Limits: $4,300 (self-only); $8,550 (family). ➡️ Catch-Up Contributions: Additional $1,000 if you’re 55 or older. ➡️ Out-of-Pocket Maximums: $8,300 (self-only); $16,600 (family). HSAs are a win-win for employers and employees. 💼 As an employer, you can contribute to your employees' HSAs, offering them added value while enjoying payroll tax benefits. Remember, unused funds roll over year to year, giving your team peace of mind for future medical needs. The rules can be complex, but you don’t have to navigate them alone. 🤝 Let us help you evaluate if HSAs are right for your business and how you can implement them effectively. 📞 Contact us today to learn more! #SmallBusiness #TaxStrategy #HealthCareSavings #HSA #EmployeeBenefits #BusinessAdvisory

🌟 Planning Ahead: Key Tax Updates for 2025 🌟 Inflation impacts more than prices—it shapes tax planning too! Here are key highlights of IRS inflation-adjusted tax provisions for 2025 that can help you save and prepare: 📌 Standard Deduction Increases 🧑💼 Single: $15,000 (up from $14,600 in 2024) 💍 Married Filing Jointly: $30,000 (up from $29,200) 🏡 Head of Household: $22,500 (up from $21,900) More deduction = more income sheltered from federal tax! 📌 Top Tax Rate Thresholds Rise 🔝 37% rate begins at $626,350 for singles, $751,600 for couples filing jointly. 📌 Boost Retirement Savings 💼 401(k), 403(b), 457 Plans: Contribution limit increases to $23,500 (up from $23,000). 🎂 New SECURE 2.0 Catch-Up for Ages 60-63: Save up to $34,750! ✅ IRA limits remain at $7,000 + $1,000 catch-up for age 50+. 📌 Flexible Spending Accounts (FSAs) - Annual contribution: $3,300 (up from $3,200). - Carryover max: $660 (up from $640). 📌 Gift Tax Exclusion Grows - Annual gift limit rises to $19,000 per recipient (up from $18,000). 💡 Proactive tax planning pays off. Understanding these changes now means more opportunities to maximize deductions, contributions, and savings later. 📅 Ready to get ahead of your 2025 tax strategy? Let’s chat! #TaxPlanning #SmallBusinessTaxTips #RetirementSavings #FSA #TaxEfficiency #WePlanYouProfit #BusinessAdvisory

🎯 Are You Confused About Deducting Business Meal & Entertainment Expenses? You’re Not Alone! The rules around what you can (and can’t) deduct have changed in recent years. Let’s break down the key points for 2024: 📌 What’s Deductible? - 50% Deduction: Meals for business purposes, as long as they’re not lavish, involve you or an employee, and a business associate is present. - Travel Meals: Still 50% deductible when you’re traveling for business. - 100% Deduction: Certain expenses like employee holiday parties, promotional events, or meals reported as taxable compensation. ⚠️ Entertainment Expenses: Golf outings, sporting events, or similar activities? No deduction. ✅ Pro Tips: - Keep receipts! They’re your best friend in substantiating expenses. - Separate food costs from entertainment on invoices for maximum deduction. 💼 Navigating these rules can save you money — but it can get complicated. Let’s make sure you’re taking full advantage of the deductions available. 📲 Contact us today to get clarity and maximize your tax efficiency! #SmallBusinessTips #TaxPlanning #BusinessMeals #Entrepreneurs #TaxEfficiency #BusinessAdvisory

🎄✨ Merry Christmas from Business Advisory and Accounting Partners! ✨🎄 As the holiday season fills the air with joy, we want to take a moment to express our heartfelt gratitude to you, our valued clients. This year, we've been honored to walk alongside you as you’ve grown your businesses, optimized your finances, and worked toward your goals. 🌟 Wishing you and your loved ones a holiday filled with peace, laughter, and success! Thank you for trusting us as your partners in financial growth. 🎁💡

💡 Senior Tax-Saving Alert: Make Charitable Donations from Your IRA 💡 Are you age 70½ or older? Here's a powerful tax strategy you might not know about: Qualified Charitable Distributions (QCDs). What Are QCDs? QCDs allow you to donate directly from your IRA to an IRS-approved charity tax-free! Unlike regular IRA distributions, which may be taxed, QCDs offer a way to give back while gaining significant tax benefits. Key Benefits of QCDs: 1️⃣ Lower Adjusted Gross Income (AGI): Keep your income lower, reducing the chances of being hit by AGI-based penalties or the 3.8% net investment income tax. 2️⃣ Guaranteed Tax Advantage: Unlike regular donations, QCDs always provide a tax benefit—even if you take the standard deduction. 3️⃣ RMD Solution: Use QCDs to cover your Required Minimum Distributions (RMDs), avoiding the taxes you'd normally pay on those withdrawals. 4️⃣ Tax Efficiency for Mixed IRAs: QCDs come from the taxable portion of your IRA first, maximizing their value while leaving nontaxable funds intact for future tax-free withdrawals. 5️⃣ Estate Planning Perks: Reduce your taxable estate—though with today’s federal exemption thresholds, this is a bonus for most. What’s New for 2024? Thanks to the SECURE 2.0 Act, the annual QCD limit is now $105,000, up from $100,000 in 2023. And in 2025, it jumps to $108,000. Who Can Benefit? - Anyone age 70½ or older with traditional IRA funds they don’t need for living expenses. - Seniors looking for a tax-smart way to support their favorite causes. - Couples with separate IRAs can each take advantage of the QCD limits. 👉 Act Now: Make your QCDs before year-end to maximize your tax savings for 2024. Have questions or need assistance with setting up a QCD? We’re here to help you navigate the process and make the most of this tax-saving opportunity. 📞 Contact us today to get started! #TaxPlanning #RetirementPlanning #QCD #CharitableGiving #TaxSavings #BusinessAdvisory

💡 Maximize Your Charitable Giving with a Strategy Called “Bunching” 💡 Thinking about charitable giving? You can make a bigger impact on both your favorite causes and your tax return with the “bunching” strategy. Here's how: ✨ Why it works: - Donations to IRS-approved charities are tax-deductible only if you itemize your deductions. - Since the standard deduction nearly doubled (2018–2025), itemizing isn’t as common. ✨ How bunching helps: - In "gift years," consolidate donations into larger amounts and itemize deductions. - In "off years," skip donations and take the standard deduction. - You can also "bunch" other itemizable expenses like mortgage interest, property taxes, and medical costs to maximize benefits. 👩💼👨💼 Proactive planning is key to treating your taxes like an investment. Let’s work together to align your giving and tax strategies! #CharitableGiving #TaxPlanning #SmallBusinessTips #FinancialStrategy #BusinessAdvisory