Superior Results. Delivered.
Blog
Employers Must Certify Eligibility of New Hires to Claim the Work Opportunity Tax Credit
As appearing in IRS Tax Tip 2024-85 Employers who hire people from certain groups can reduce the tax they owe when they claim the Work Opportunity Tax Credit on their federal tax return. To claim the credit, an employer must first get certification an individual is eligible. This credit is extended through the end of 2025. It [...]
Dealer Push Back Heats Up Over Alliance for Automotive Innovation Letter to DOJ
As posted to CBT News on 7/25/25 (Click Image to View Clip - Run Time: 18 min, 07 sec) A recent letter from the Alliance for Automotive Innovation to the U.S. Department of Justice (DOJ) has sparked a firestorm in the automotive retail world. The letter, urging the DOJ to scrutinize state dealership, franchise, and [...]
Tax Checklist for Newlyweds
As appearing in IRS Tax Tip 2024-57 Summer is wedding season, and newlyweds can make their tax filing easier by doing a few things now. A taxpayer's marital status as of December 31 determines their tax filing options for the entire year, but that's not all newlyweds need to know. Report a name change Report [...]
Is Your Side Hustle a Hobby or a Business?
As appearing in IRS Tax Tip 2024-55 Hobbies and businesses are treated differently when it comes to filing taxes. The biggest difference between the two is that businesses operate to make a profit while hobbies are for pleasure or recreation. Whether someone is having fun with a hobby or running a business, if they are [...]
Beware of These Common Tax Scams
As appearing in IRS Tax Tip 2024-42 Taxpayers and tax professionals should remain alert and aware of these common scams, schemes and cons to avoid losing money, personal information or client data. Social media: Fraudulent form filing and bad advice Social media can circulate inaccurate or misleading tax information, and the IRS has recently seen [...]
What Taxpayers Need to Know About Digital Asset Reporting for Tax Purposes
As appearing in IRS Tax Tip 2024-21 Taxpayers filing 2023 tax returns must check a box indicating whether they received digital assets as a reward, award or payment for property or services or disposed of any digital asset that was held as a capital asset through a sale, exchange or transfer. A digital asset is [...]
No Tax on Car Loan Interest Under OBBBA 2025? Not Exactly
Under current federal income tax rules, so-called personal interest expense generally can’t be deducted. One big exception is qualified residence interest or home mortgage interest, which can be deducted, subject to some limitations, if you itemize deductions on your tax return. The One Big Beautiful Bill Act (OBBBA) adds another exception for eligible car loan [...]
A Tax Guide to Choosing the Right Business Entity
One of the most critical decisions entrepreneurs make when starting or restructuring a business is choosing the right entity type. This choice directly impacts how the business is taxed, the level of administrative complexity and regulatory compliance obligations. While legal liability considerations also matter, we will focus on tax implications. For liability advice, consult a [...]
How to Interview Employees About Possible Fraud
If you or your managers suspect fraud is occurring in your organization, you can’t afford to wait to act. According to the Association of Certified Fraud Examiners, the longer an occupational fraud scheme continues, the more it will cost the company a significant amount. So any suspicion should result in hiring a forensic accountant to [...]
Act Soon: OBBBA 2025 Ends Clean Energy Tax Breaks
The newly enacted One, Big, Beautiful Bill Act (OBBBA) represents a major move by President Trump and congressional Republicans to roll back a number of clean energy tax incentives originally introduced or expanded under the Inflation Reduction Act (IRA). Below is a summary of the key individual tax credits that will soon be scaled back [...]
OBBBA 2025 is a Game-Changer for Business Payment Reporting
The One, Big Beautiful Bill Act (OBBBA) contains a major overhaul to an outdated IRS requirement. Beginning with payments made in 2026, the new law raises the threshold for information reporting on certain business payments from $600 to $2,000. Beginning in 2027, the threshold amount will be adjusted for inflation. The current requirement: $600 threshold [...]
Factoring OBBBA 2025 Into a Business Valuation
Several provisions of the One, Big, Beautiful Bill Act (OBBBA) — enacted on July 4, 2025 — alter the tax rules for businesses. The new law generally extends and expands many provisions of the Tax Cuts and Jobs Act of 2018 (TCJA). If Congress hadn’t passed the OBBBA, many temporary TCJA provisions would have expired. Not [...]
What You Still Need to Know About the Alternative Minimum Tax After OBBBA 2025
The alternative minimum tax (AMT) is a separate federal income tax system that bears some resemblance to the regular federal income tax system. The difference is that the individual AMT system taxes certain types of income that are tax-free under the regular system. It also disallows some deductions that are allowed under the regular system. [...]
The QBI Deduction and What’s New in OBBBA 2025
The qualified business income (QBI) deduction, which became effective in 2018, is a significant tax benefit for many business owners. It allows eligible taxpayers to deduct up to 20% of QBI, not to exceed 20% of taxable income. It can also be claimed for up to 20% of income from qualified real estate investment trust [...]
Recognizing Fraud Risk from Precious Metal Investments
Precious metal investments are surging in popularity — and for good reason. They’re commonly sold as a hedge against inflation and stock market volatility and as a financial refuge in times of general economic uncertainty. Although these physical assets and the investment products that hold them (such as some mutual funds and ETFs) can be [...]
Disclaimer
This blog is designed to provide competent and reliable information regarding the subject matter covered. However, it is being provided with the understanding that the blogmaster is not engaged in rendering investment advice. Laws and practices often vary from state to state and if investment assistance is required, the services of a licensed investment professional should be sought. The blogmaster resolutely encourages the reader/viewer to do their own research and due diligence before acting on any information contained herein. As such, Roger Rossmeisl specifically disclaims any liability that is incurred from the use or application of the contents of this blog. It should also be noted that the views contained in this blog are not necessarily representative of the opinions/beliefs of the other owners, management and/or employees of Kho & Patel CPAs.
