Benefits that help you care for your company’s caregivers
Companies that employ parents of young children and caregivers of adults may want to add dependent care flexible spending accounts (FSAs) to their benefits packages. Doing so can help you attract and retain talent and reduce payroll tax. Employees typically like FSAs because they fund accounts with pretax dollars and use them to pay eligible expenses, including day care and summer day camps. Another idea is to offer child care to employees, either on- or off-site. This may sound costly, but starting in 2026, businesses may qualify for an employer-offered child care tax credit of up to $500,000 ($600,000, small businesses). Contact us for more information.
Are you eligible for mileage deductions?
Are you eligible for mileage deductions? Whether you’re filing your 2025 individual income tax return or planning for 2026, it’s important to know. Employees can’t deduct business mileage, but the self-employed can. And vehicle expense deductions may also be available to individuals who drive for medical, moving or charitable purposes. But many rules and limits apply. The standard business mileage rate is 70 cents for 2025 and 72.5 cents for 2026. The rate for medical or moving mileage is 21 cents for 2025 and 20.5 cents for 2026. The charitable mileage rate is 14 cents for both 2025 and 2026. Or you can claim certain actual expenses. If you’re not sure whether you’re eligible, contact us.
Debt vs. equity: Classification counts when shareholders put money into their corporations
How you capitalize your C corporation isn’t just an accounting matter — it’s a tax-saving opportunity. You can set up funds supplied by shareholders as either capital contributions (equity) or loans (debt).
Future withdrawals by equity investors may result in double taxation. Conversely, repayments of shareholder loans are generally tax-free, while interest payments are taxable to the shareholder and deductible by the corporation. This setup provides a more tax-efficient way to get money out of your company. However, the IRS may reclassify shareholder loans as equity if not properly structured and documented. Contact us to evaluate your options and determine what’s right for your situation.
Cross-functional teams can boost collaboration — and sales
A cross-functional team can jumpstart your company’s sales. By bringing employees together from across your organization, you might be able to develop more effective strategies and better align offerings with customer needs. In addition to including sales and marketing staff on your team, invite employees from IT, customer service, finance and other functions. Over time, this approach can lead to clearer visibility into what’s driving revenue and profitability and how different parts of the business contribute to company performance. Contact us to learn how to break down silos and better align your sales efforts with your broader business strategy.
Don’t miss your opportunity to make a 2025 IRA contribution — whether you can deduct it or not
Each year, you may be able to contribute up to the annual limit to a traditional or Roth IRA (or a combination of the two). The deadline for 2025 IRA contributions is April 15, 2026 — even if you file for an extension on your 2025 return.
You may be eligible to deduct all or part of your traditional IRA contribution and save taxes on your 2025 return. Roth IRA contributions aren’t deductible, but qualified withdrawals are tax-free. If you’re ineligible to make Roth IRA contributions or deduct traditional ones due to income-based phaseouts, a nondeductible traditional IRA contribution can be beneficial.
Have questions about making 2025 IRA contributions? Contact us.
Should your business consider a fiscal year end?
Most businesses close their books on December 31 because it aligns with the calendar year. And it may seem easier for tax filing purposes.
But this approach isn’t right for every business. Some entities — such as construction companies, accounting firms and snowplowing operations — may have valid reasons for adopting fiscal year ends. Aligning a company’s tax year with its operating cycle can streamline reporting and support better planning.
If you’re thinking about changing your business’s year end, contact us to discuss your options. We can also guide you through the IRS approval process.
Why you might want to build a wall between your business and its real estate
Building a wall between your company and its real estate can be a smart move for various legal and financial planning reasons. Holding real property in a separate entity — such as an LLC or limited partnership — can protect it from your business’s creditors and legal liabilities (and vice versa). Plus, this strategy offers estate planning flexibility and succession benefits. Also, you risk double taxation if your C corporation owns and sells real estate. But if you sell real estate held separately, the profits generally are taxed only once. Contact us to discuss the pros and cons of creating separate entities.
Business deductions for four-legged coworkers
Some businesses may claim tax deductions for animals that perform a legitimate business function. Guard dogs that protect property or cats that control rodents in warehouses are common examples of “working animals.” If an animal provides a clear and direct business benefit, certain expenses (such as food, veterinary care, training and supplies) may qualify as ordinary and necessary business expense deductions. However, the IRS draws a clear line between bona fide working animals and household pets. Contact us to discuss your situation. We can explain the tax rules and documentation needed to support animal-related business deductions.
It’s your last chance to claim these clean energy tax breaks
Last year’s One Big Beautiful Bill Act (OBBBA) terminated several clean energy tax incentives earlier than previously scheduled. But if you bought an electric vehicle or made certain green home improvements last year, you might be eligible for a tax credit on your 2025 individual income tax return. Possible credits include ones for purchasing a new or used clean vehicle (if done by Sept. 30, 2025), making energy-efficient home improvements, or installing renewable energy systems or electric vehicle charging ports at your home. But various rules and limits apply. If you’re wondering whether you might qualify for one or more of these credits, contact us.
Better billing practices are only an easy assessment away
If your company has experienced billing errors or delays — or if it’s been a while since you assessed your billing function — now’s a good time to conduct a review. Start by ensuring your invoice amounts are accurate and discounts are properly applied. Train employees to follow up promptly on late payments or billing disputes. Rising customer complaints may signal a deterioration in the quality of your products or services and give customers an excuse to delay paying invoices. Also consider adopting an automated billing system if you don’t already use one. Electronic invoicing is faster and more efficient. Contact us for additional recommendations.