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Run a Business With Your Spouse? You May Encounter Unique Tax Issues
Do you and your spouse together operate a profitable unincorporated small business? If so, you face some challenging tax issues. The partnership issue An unincorporated business with your spouse is classified as a partnership for federal income tax purposes, unless you can avoid that treatment. Otherwise, you must file an annual partnership return using Form 1065. [...]
How Tariffs Could Increase Your Company’s Supply Chain Risk
Your company’s supply chain is one of the many business functions vulnerable to fraud, particularly as foreign tariffs take effect. Dishonest employees and vendors are known to have taken advantage of the COVID-19 pandemic’s supply shortages and abrupt switch to remote working. Now, tariff disruptions provide a similar opportunity for fraud perpetrators. Many businesses are [...]
Teachers and Others Can Deduct Eligible Educator Expenses This Year . . . and More Next Year and Beyond
At back-to-school time, much of the focus is on the students returning to the classroom — and on their parents buying them school supplies, backpacks, clothes, etc., for the new school year. But teachers are also buying school supplies for their classrooms. And in many cases, they don’t receive reimbursement. Fortunately, they may be able [...]
Evaluating Marketability When Valuing Controlling Business Interests
When investing in a business, the buyer considers how easily the interest can be converted to cash. However, transferring private business interests isn’t necessarily quick or easy — even if you own the entire company or a controlling block of the outstanding shares. Here’s a closer look at how business valuation professionals address the issue [...]
New Rules Could Boost Your R&E Tax Savings in 2025
A major tax change is here for businesses with research and experimental (R&E) expenses. On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) reinstated the immediate deduction for U.S.-based R&E expenses, reversing rules under the Tax Cuts and Jobs Act (TCJA) that required businesses to capitalize and amortize these costs over five years (15 years [...]
California CDTFA Updates Pub 34: Motor Vehicle Dealers (3/2025)
The California Department of Tax and Fee Administration (CDTFA) has released an updated version of Publication 34: Motor Vehicle Dealers in March 2025. This guide helps motor vehicle dealers understand and comply with California’s sales and use tax laws for vehicle sales, leases, and use. The March 2025 update incorporates recent legislative changes, including those [...]
IRS Lists FAQs on Expiration of Energy Credits and Deductions under OBBBA
As appearing in IRS Fact Sheet 2025-5 These FAQs are being issued to provide general information to taxpayers and tax professionals as expeditiously as possible. Accordingly, these FAQs may not address any particular taxpayer’s specific facts and circumstances, and they may be updated or modified upon further review. Because these FAQs have not been published [...]
Teacher Funded Classroom Costs Can Be Offset with Educator Expense Deduction
As appearing in IRS Tax Tip 2025-58 With back-to-school, comes potential out-of-pockets costs for educators. The Educator Expense Deduction lets eligible teachers and administrators deduct certain expenses from their taxes. Eligible educators The taxpayer must be a kindergarten through grade 12 teacher, instructor, counselor, principal or aide and work at least 900 hours a school [...]
No Changes to 2025 Information Returns or Withholding Tables Under OBBBA
As appears in IRS IR-2025-82 On 8/7/25, the Internal Revenue Service announced that, as part of its phased implementation of the One, Big, Beautiful Bill Act (OBBBA), there will be no changes to certain information returns or withholding tables for Tax Year (TY) 2025 related to the new law. Key points for TY 2025 relating [...]
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 [...]
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.
