The power of catch-up retirement account contributions after 50
Are you age 50 or older? You’ve earned the right to supercharge your retirement savings with extra “catch-up” contributions to your tax-favored retirement account(s). An eligible taxpayer can make extra catch-up contributions of up to $1,000 annually to a traditional or Roth IRA. If you’ll be 50 or older as of Dec. 31, 2025, you can make catch-up contributions for 2025 by April 15, 2026. However, there are income limits to make contributions. You also must be age 50 or older to make catch-up contributions to an employer 401(k), 403(b), or 457 retirement plan (if the plan allows them). You can make extra contributions of up to $7,500 to these accounts for 2025. Questions? Contact us.
Receive $10,000 in cash at your business? The IRS wants to know about it
If your business receives large amounts of cash or cash equivalents, you may be required to report the transactions to the IRS. Each person engaged in a trade or business who receives more than $10,000 in cash in one transaction, or in two or more related transactions, must file Form 8300. Transactions conducted in a 24-hour period are considered related. Cash equivalents include cashier’s checks, bank drafts, traveler’s checks and money orders. (Currently, digital asset receipts don’t have to be reported on Form 8300.) Many businesses are now required to e-file these forms. The rules apply to individuals, businesses, associations, trusts and estates. Contact us with questions.
Businesses strive for balance in hybrid work models
Since the pandemic, many businesses have sought to strike a balance between allowing some remote work while also requiring employees to come into the office. If your company operates under a hybrid work model, handle the related issues carefully. For example, you could let employees set their own schedules, have supervisors or teams do it, or mandate scheduling yourself. Another important issue is how strongly you communicate, track and enforce hybrid work policies. Last, there’s the not-so-small matter of costs. Keep a clear and constant view of hybrid work’s financial implications. Contact us for help identifying all relevant expenses to ensure your hybrid model remains sustainable.
Run a business with your spouse? You may encounter unique tax issues
If you and your spouse operate an unincorporated small business, you face some unique tax issues. For example, an unincorporated spousal business is generally classified as a partnership for federal tax purposes. (However, in community property states, you can treat the business as a sole proprietorship.) As a partnership, you must file an annual partnership return and both spouses must receive Schedules K-1, which allocate taxable income, deductions and credits between the two. With your joint tax return, you must also pay self-employment (SE) tax on your share of the net SE income passed through to you by the partnership. Your spouse must do the same. Contact us for tax-saving strategies.
5 ways your business can build a stronger annual budget
As summer gives way to fall, many businesses begin their annual budget-setting processes. Here are five ways to improve this often-difficult task: 1) Optimize data to eliminate confusing or conflicting information that could hamper budget performance. 2) Involve the entire organization to gain insights from each department’s knowledge base. 3) “Sell” your budget to staff, clearly explaining its rationale and objectives. 4) Once the budget is in place, monitor cash flow carefully and create a plan for shortfalls. 5) Get an objective opinion on your budgeting process. We can show you how to better analyze historical financial data, identify cost-saving opportunities and more.
Teachers and others can deduct eligible educator expenses this year — and more next year and beyond
Teachers commonly buy school supplies for their classrooms. In many cases, they don’t receive reimbursement. Fortunately, they may be able to deduct some of these expenses on their tax returns. And, beginning next year, eligible educators will have an additional deduction opportunity under the One Big Beautiful Bill Act (OBBBA). For 2025, up to $300 of qualified expenses paid during the year that weren’t reimbursed can be deducted without having to itemize deductions. The OBBBA creates a new miscellaneous itemized deduction for eligible educator expenses incurred after Dec. 31, 2025. Contact us to learn about the eligibility requirements and discuss other tax-saving strategies.
New rules could boost your R&E tax savings in 2025
A major tax change is here for businesses with research and experimental (R&E) expenses. The One Big Beautiful Bill Act (OBBBA) reinstated the immediate deduction for U.S.-based R&E expenses effective for 2025. This reversed rules under the Tax Cuts and Jobs Act that required businesses to capitalize and amortize these costs over five years. The immediate deduction can substantially reduce your taxable income. But there are strategies you can employ to make the most of R&E tax-saving opportunities, such as applying the changes retroactively if eligible and accelerating remaining deductions from prior years. Contact us for help determining the best approach to maximize your tax savings.
Shining a light on your business’s brand
Like every business, your company has a brand that may need an occasional refresh to keep up with the times. When re-evaluating yours, first identify the strengths of your business. Maybe you’ve pivoted over the last several years to address changing economic or market conditions. Next, determine what personality will draw today’s buyers to your company. Review points of contact with customers and consider whether you’re making the right impression. Finally, check up on the competition. Identify what branding tactics they’re using and develop countermeasures. Contact us for help evaluating your current and prospective branding strategies from a cost-planning perspective.
Investing in qualified small business stock now offers expanded tax benefits
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The preferential tax treatment of qualified small business (QSB) stock is getting even better under the One Big Beautiful Bill Act (OBBBA). Generally, taxpayers selling QSB stock can exclude 100% of the gain if they’ve held the stock for more than five years. The OBBBA provides a 75% exclusion for QSB stock held for four years and a 50% exclusion for QSB stock held for three years. These exclusions go into effect for QSB stock acquired after July 4, 2025. The OBBBA also increases the asset ceiling for QSBs from $50 million to $75 million (adjusted for inflation after 2026) for stock issued after July 4, 2025. Additional requirements apply. Contact us to learn more.
How businesses can fund a buy-sell agreement
Businesses with multiple owners face serious risks if one of the owners suddenly departs or undergoes a major life change. A buy-sell agreement can guard against these risks, but only if it’s securely funded. One popular funding choice is life insurance. The right policy, sometimes combined with riders or other types of coverage, can help ensure that departing owners or their beneficiaries efficiently receive the agreed-upon price for ownership interests following eligible triggering events. Meanwhile, it can ease the strain on the company’s cash flow and reduce the likelihood that the business will have to sell assets to fund an ownership interest buyout. Contact us for more information.