Workers can deduct up to $12,500 ($25,000 joint) of qualified overtime pay on their federal return through 2028. Only the federally required premium counts, 2026 W-2s show it in box 12 code TT, and California does not follow the deduction.
The Overtime Deduction in 2026: What Workers and Employers Need to Know Read More »
Permanent 100% bonus depreciation for property acquired after January 19, 2025, a $2.56 million Section 179 limit for 2026, and immediate deductions for domestic research costs. Here is how to use them before year-end, and why California’s numbers will differ.
Business Owners: 100% Bonus Depreciation Is Back, and Section 179 Is Bigger Read More »
The 1099-NEC and 1099-MISC threshold rises from $600 to $2,000 for payments made in 2026, and payment apps report on Form 1099-K only above $20,000 and 200 transactions. Fewer forms, but every dollar of income is still taxable.
Form 1099 Changes for 2026: New $2,000 and $20,000 Reporting Thresholds Read More »
Qualifying for Deduction To take a business deduction for home office expenses, you must use your home under one of the following scenarios. You have an area in your home that is regularly and ex-clusively used as your principal place of business. You have an area in your home where you regularly and exclusively meet
Business Use of Home Read More »
Business Owners – Taking Money Out of a Business When taking money out of a business, transactions must be carefully structured to avoid unwanted tax consequences or damage to the business entity. Business owners should follow the advice of a tax professional to make sure finan-cial transactions are controlled and do not cause unantici-pated taxation
Business Owners—Taking Money Out of a Business Read More »
Online Business Resources www.sba.gov The U.S. Small Business Administration (SBA) provides programs for businesses in the areas of technical assistance, training and counseling, financial as-sistance, assistance with government contracting, disas-ter assistance recovery, advocacy laws and regulations, civ-il rights compliance, and special interests, such as women, veterans, Native Americans, and young entrepreneurs. The website provides links
Business Management Tips Read More »
Business Expenses Worksheet If this is your first year with our firm, please provide a depreciation schedule for all property placed in service in prior years. DOWNLOAD PDF Contact Us There are many events that occur during the year that can affect your tax situation. Preparation of your tax return involves sum-marizing transactions and events
Business Expenses Worksheet Read More »
Sole Proprietorship Pros No formal creation process. Easy to operate and dissolve. No separate tax return. Easy to integrate business use of home deductions. No double taxation of profits. Cons No liability protection, except through insurance. Self-employment tax is assessed on entire net profit of the business. Transfer of ownership can be complex. Limited access
Business Entity Pros and Cons Read More »
Sole proprietor, single-member LLC, and spouses-owned business Entity Schedule C (Form 1040), Profit or Loss From Business Schedule F (Form 1040), Profit or Loss From Farming Schedule SE (Form 1040), Self-Employment Tax IRS Pub. 334, Tax Guide for Small Business Accounting and Recordkeeping Accounting is less involved than partnerships and corporations. Double-entry bookkeeping is not
Business Entity Comparison Chart Read More »
Alternative Minimum Tax (AMT) The alternative minimum tax (AMT) was originally enact-ed to ensure that high-income taxpayers pay at least a min-imum amount of tax if they benefit from certain deductions and other tax preference items. The AMT tax computation is a parallel system to the reg-ular tax system with its own definitions of income
Alternative Minimum Tax Read More »
