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4 Types of Interest Expense You May Be Able to Deduct
Personal interest expense generally can’t be deducted for federal tax purposes. There are, however, exceptions. Here are four, one of which is a new break under the One Big Beautiful Bill Act (OBBBA), which was signed into law in 2025. 1. Mortgage interest Perhaps the most well-known interest expense deduction, home mortgage interest may be [...]
What’s Your Potential Business Vehicle Deduction?
If you used one or more vehicles in your business during 2025, you may be eligible for valuable tax deductions on your 2025 income tax return. Businesses can generally deduct expenses attributable to business use of a vehicle plus depreciation. However, the rules are complicated, and your deduction may be affected by factors such as [...]
M&A Spotlight: Business Valuation Guidance Remains Critical After Closing
Business owners often turn to valuation professionals for help during the merger and acquisition (M&A) process. However, their expertise extends beyond establishing reasonable price expectations, structuring transactions and evaluating deal terms. Valuators can continue to provide support after closing to help ensure buyers achieve expected results and avoid post-acquisition pitfalls. Hot M&A market The M&A [...]
Parents: Claim all the Tax Credits You’re Entitled To
Raising a family comes with plenty of expenses, but it may also make you eligible for various tax breaks. Some of the most valuable are tax credits, because they reduce your tax liability dollar for dollar (unlike deductions, which only reduce the amount of income subject to tax). Here’s what you need to know. Child, [...]
Deferring Taxes on Advance Payments
An advance payment is one received by a business before it provides whatever is being paid for. For federal income tax purposes, generally advance payments must be reported as taxable income in the year received. This treatment always applies if your business uses the cash method of accounting for tax purposes. But, if your business [...]
10 Questions to Help You Prevent Customer List Theft
You understand how important customer lists are to your business’s financial success. So do employees. In fact, some dishonest workers may be tempted to take lists with them when they leave — or even sell them while still employed by your company. Employees bent on fraud may misuse legitimate access to download or forward customer [...]
Owner’s Compensation: A Critical Business Valuation Adjustment
Owners’ compensation can be a subjective — potentially contentious — issue when valuing a closely held business. Here’s an overview of how business valuation professionals evaluate and adjust for owners’ compensation when assessing normalized earnings. The link between owners’ compensation and value Under the fair market value standard, the focus is on what a hypothetical [...]
Quadrupled SALT Deduction Limit Means More Taxpayers will Benefit from Itemizing on their 2025 Returns
An important decision to make when filing your individual income tax return is whether to claim the standard deduction or itemize deductions. A change under the One Big Beautiful Bill Act (OBBBA) will make it beneficial for more taxpayers to itemize deductions on their 2025 returns. Specifically, if you paid more than $10,000 in state [...]
IRS Announces Streamlined Option to Request More Time After ERTC Claim Disallowance
As appears at IR-2026-58 On 4/27/2026, the Internal Revenue Service announced a new, streamlined way for taxpayers to extend the period of time for the IRS and the IRS Independent Office of Appeals to review a taxpayer’s response to a disallowance of an Employee Retention Tax Credit (ERTC) claim to avoid refund litigation. When an [...]
To Maximize . . . or Not to Maximize . . . Depreciation Deductions on your 2025 Tax Return
The deadlines for filing 2025 tax returns (or extensions) are fast approaching. Although most tax planning moves must be completed by December 31 of the tax year, there are some decisions you can make when filing your return that can save taxes now or in the future. One such decision is whether to claim accelerated depreciation [...]
If You’re Married, Should You File Jointly or Separately?
Married couples have a choice when filing their 2025 federal income tax returns. They can file jointly or separately. What you choose will affect your standard deduction, eligibility for certain tax breaks, tax bracket and, ultimately, your tax liability. Which filing status is better for you depends on your specific situation. Minimizing tax In general, [...]
Some Small Businesses Can Still Benefit from the Health Care Coverage Credit
Tax credits reduce tax liability dollar-for-dollar. As a result, they can be more valuable than deductions, which reduce only the amount of income subject to tax. One tax credit that hasn’t been getting much attention lately but that can still be valuable for some small businesses is the credit for providing health insurance to employees. [...]
Businesses Need to Look Before They Leap Abroad
U.S. businesses may want to operate abroad for many reasons. Examples include opportunities to grow their customer bases, diversify revenue streams, establish competitive advantages and reduce production costs. Amid all the potential benefits, however, lie some serious risks, including fraud. Business customs and laws can vary widely by country. So before you start operating abroad, [...]
Before Claiming a Charitable Deduction for 2025, Make Sure You Can Substantiate It
If you itemize deductions on your 2025 individual income tax return, you potentially can deduct donations to qualified charities you made last year. But your gifts must be substantiated in accordance with IRS requirements. Exactly what’s required depends on various factors. In some cases, you must have a written acknowledgment from the charity. Substantiating cash [...]
Increase Your Current Business Deductions Under Tangible Property Safe Harbors
Did your business make repairs to tangible property, such as buildings, equipment or vehicles, in 2025? Such costs may be fully deductible on your 2025 income tax return — if they weren’t actually for “improvements” that must be depreciated over a period of years. Betterment, restoration or adaptation In general, a cost that results in [...]
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.
