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The California Competes Tax Credit: A Boost for Businesses and Jobs in 2025/2026
If you've been keeping an eye on economic incentives in the Golden State, you've probably heard about the California Competes Tax Credit (CCTC). This program just got a massive funding injection for the fiscal year 2025-2026: a whopping $922,694,691 allocated for tax credits. That's not pocket change—it's a strategic move to keep California competitive in [...]
OBBBA 2025: Tax Deductions for Working Americans and Seniors
As appearing in IRS Fact Sheet FS-2025-03 Below are descriptions of new provisions from the One Big Beautiful Bill Act, signed into law on July 4, 2025, as Public Law 119-21, that go into effect for 2025. “No Tax on Tips” New Deduction Effective for 2025 through 2028, employees and self-employed individuals may deduct qualified [...]
Bullet Point OBBBA Changes Impacting Individuals
The One Big Beautiful Bill Act (OBBBA) was signed into law on July 4, 2025. The Act is comprehensive and includes key changes to individual-related provisions and incentives. Navigating these changes will be complex, but understanding them is essential for effective tax planning and optimizing your position. The following is a list, not intended to [...]
Bullet Point OBBBA Changes Impacting Businesses
The One Big Beautiful Bill Act (OBBBA) was signed into law on July 4, 2025. The Act is comprehensive and includes key changes to business-related provisions and incentives. Navigating these changes will be complex, but understanding them is essential for effective tax planning and optimizing your position. The following is a list, not intended to [...]
Payroll and Tax Implications of OBBBA 2025
Courtesy of Thomson Reuters (07/10/25) On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was signed into law, enacting significant changes to federal tax and payroll law. The Act extends several provisions from the Tax Cuts and Jobs Act (TCJA) and introduces new deductions, credits, and compliance requirements that will affect your payroll [...]
Help in Deciding Between a Hobby or Business
As appearing in IRS Tax Tip 2025-42 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. Either way, if they are paid through payment apps for goods and services during the [...]
An Offer in Compromise Could Assist Taxpayers in Resolving Tax Debt
As appearing in IRS Tax Tip 2025-35 When a taxpayer can't pay their full tax debt or if paying would cause financial hardship, they should consider applying for an offer in compromise. For assistance filing for an OIC from a legitimate representative, taxpayers are encouraged to check for a licensed enrolled agent or a reputable accountant [...]
IRS Issues “Dirty Dozen” Tax Scams for 2025
As appearing in IRS IR-2025-26 Earlier this year, the Internal Revenue Service announced its annual Dirty Dozen list of tax scams for 2025 with a warning for taxpayers, businesses and tax professionals to watch out for common schemes that threaten their tax and financial information. Ranging from email schemes to misleading tax credits, many of [...]
Investing in Qualified Small Business Stock Now Offers Expanded Tax Benefits
By purchasing stock in certain small businesses, you can diversify your investment portfolio. You also may enjoy preferential tax treatment, some of which is getting even better under the One Big Beautiful Bill Act (OBBBA) that was signed into law in July: Qualified small business (QSB) stock now offers more tax-saving opportunities. QSB defined A [...]
Divorcing Business Owner? Don’t Let Taxes Detail Your Settlement
Divorce is stressful under any circumstances, but for business owners, the process can be even more complicated. Your business ownership interest is often one of your largest personal assets, and in many cases, part or all of it will be considered marital property. Understanding the tax rules that apply to asset division can help you [...]
10 Tips for Cybersecurity on a Shoestring
Small businesses often lack financial resources to defend against cyberthreats, but you don’t need a large IT budget. Simple, cost-effective habits can help safeguard your company’s data, financial assets and reputation. Here are 10 practical ways to enhance cybersecurity without investing in expensive security-related infrastructure. In fact, many of these tips only require time to [...]
The Next Estimated Tax Payment Deadline is Coming Up Soon
If you make quarterly estimated tax payments, the amount you owe may be affected by the One Big Beautiful Bill Act (OBBBA 2025). The law, which was enacted on July 4, 2025, introduces new deductions, credits and tax provisions that could shift your income tax liability this year. Tax basics Federal estimated tax payments are [...]
Addressing Control Issues in a Business Valuation
One of the most contentious issues when valuing businesses is how to factor elements of control into the equation. Users of valuation reports often assume a controlling interest is entitled to a control premium. Conversely, they assume non-controlling interests should be discounted. It’s not quite that simple, though. For one thing, whether a control premium [...]
Lower Your Self-Employment Tax Bill by Switching to an S Corporation
If you own an unincorporated small business, you may be frustrated with high self-employment (SE) tax bills. One way to lower your SE tax liability is to convert your business to an S corporation. SE tax basics Sole proprietorship income, as well as partnership income that flows through to partners (except certain limited partners), is subject [...]
File Form 1099 Series Information Returns for Free Online
As appearing in IRS Tax Tip 2025-05 Business taxpayers can file electronically any Form 1099 series information returns for free with the IRS Information Returns Intake System. The IRIS Taxpayer Portal is available to any business of any size. It's secure, reduces the need for paper forms and requires no special software. With IRIS, business taxpayers [...]
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.
