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Stop Fraud at the Front Door
Small businesses often rely on a few trusted employees to be the first people customers encounter — not to mention, the primary ones to collect payments and sensitive data. For example, the front desk is usually the nerve center for dental offices, fitness studios, small hotels and retail boutiques. Although front desk employees can build [...]
Should Your Business Maximize Deductions for Real Estate Improvements Now or Spread Them Out?
Commercial real estate usually must be depreciated over 39 years. But certain real estate improvements — specifically, qualified improvement property (QIP) — are eligible for accelerated depreciation and can even be fully deducted immediately. While maximizing first-year depreciation is often beneficial, it’s not always the best tax move. QIP defined QIP includes any improvement to an [...]
Treasury and IRS Provide Transitional Relief for 2025 for Businesses Reporting Car Loan Interest Under OBBBA
As appearing in IR-2025-105 On 10/21/25, the Department of the Treasury and the Internal Revenue Service provided transitional guidance for businesses required to report car loan interest under the One, Big, Beautiful Bill Act (OBBBA). Notice 2025-57 provides penalty relief and guidance to certain lenders for new information reporting requirements for car loan interest received [...]
Boost Your Tax Savings by Donating Appreciated Stock Instead of Cash
Saving taxes probably isn’t your primary reason for supporting your favorite charities. But tax deductions can be a valuable added benefit. If you donate long-term appreciated stock, you potentially can save even more. Not just a deduction Appreciated publicly traded stock you’ve held more than one year is long-term capital gains property. If you donate [...]
How Financial Statements Unlock Business Value
As calendar-year entities start work on their year-end financials, it’s important to remember that financial reporting is about more than compliance. Financial statements also help business owners make better-informed decisions — and they provide a wealth of data to assess business value. Here’s a look at three key reports and how business valuation pros use [...]
There’s Still Time for Businesses to Benefit from Clean Energy Tax Breaks
The One Big Beautiful Bill Act (OBBBA), signed into law July 4, 2025, extends or enhances many tax breaks for businesses. But the legislation terminates several business-related clean energy tax incentives earlier than scheduled. For example, the Qualified Commercial Clean Vehicle Credit (Section 45W) had been scheduled to expire after 2032. Under the OBBBA, it’s available [...]
Using an Old Analytical Tool to Find New Fraud Tricks
Benford’s Law was first popularized by physicist Frank Benford in 1938, but it’s a statistical concept that remains relevant today — particularly in the fight against fraud. At a recent PayrollOrg Leaders Conference session on payroll analytics, Benford’s Law was cited as an effective tool for businesses to find fraud early. Even the IRS employs [...]
2025-2026 “High-Low” Per Diem Business Travel Rates are Here
If you have employees who travel for business, you know how frustrating it can be to manage reimbursements and the accompanying receipts for meals, hotels and incidentals. To make this process easier, consider using the “high-low” per diem method. Instead of tracking every receipt, your business can reimburse employees using daily rates that are predetermined [...]
Making the Most of the New Deduction for Seniors
For 2025 through 2028, individuals age 65 or older generally can claim a new “senior” deduction of up to $6,000 under the One Big Beautiful Bill Act (OBBBA). But an income-based phaseout could reduce or eliminate your deduction. Fortunately, if your income is high enough that the phaseout is a risk, there are steps you [...]
5 Potential Breaks to Know Before Moving a Parent into a Nursing Home
Approximately 1.3 million Americans live in nursing homes, according to the National Center for Health Statistics. If you have a parent moving into one, taxes are probably not on your mind. But there may be tax implications. Here are five possible tax breaks. 1. Long-term medical care The costs of qualified long-term care, including nursing [...]
Tax Traps of Personally Guaranteeing a Loan to Your Corporation
If you’re considering guaranteeing, or are asked to guarantee, a loan to your closely held corporation, it’s important to understand the potential tax consequences. Acting as a guarantor, endorser or indemnitor means that if the corporation defaults, you could be responsible for repaying the loan. Without planning ahead, you may face unexpected tax implications. A [...]
Understanding the Most Common IRS Notices
For many taxpayers, receiving a letter from the IRS can feel intimidating. The envelope arrives with the IRS seal, and immediately, worry sets in: Did I make a mistake? Am I in trouble? The truth is, IRS notices aren’t uncommon, and most of them can be resolved fairly easily once you understand what they mean. [...]
Blockage Discounts: Size Counts in Certain Stock Valuations
When valuing large blocks of publicly traded stock, business valuation professionals sometimes apply a “blockage discount.” This adjustment reflects the decrease in the per-share value of a block of stock that’s so large it couldn’t be sold in a reasonable period given normal trading volume. What’s the rationale behind this discount? If a block of [...]
7 Ways to Fight Friends-and-Family Discount Abuse
Small businesses often discount their products and services for employees, friends, family and loyal customers. Unfortunately, these well-meaning practices can lead to misuse, fraud and revenue loss if employees don’t follow the rules. Workers might, for example, discount merchandise in exchange for a cash bribe. Or they could innocently extend the discount to someone who [...]
Tax Court Case Provides Lessons on Best Recordkeeping Practices for Businesses
Running a successful business requires more than delivering great products or services. Behind the scenes, meticulous recordkeeping plays a crucial role in financial health, compliance and tax savings. Good records can mean the difference between successfully defending a deduction and losing valuable tax breaks. A recent U.S. Tax Court decision underscores just how important this [...]
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.
