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What families need to know about the new tax law
July 29, 2025
Categories: Adoption tax credit, Child Tax Credit, OBBBA, Trump Account
The One, Big, Beautiful Bill Act (OBBBA) has introduced significant tax changes that could affect families across the country. While many of the provisions aim to provide financial relief, the new rules can be complex. Below is an overview of the key changes. Adoption credit enhanced Parents who adopt may be eligible for more generous tax relief. Under current law, a tax credit of up to $17,280 is available for the costs of adoption in 2025. The credit begins to phase out in 2025 for taxpayers
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The new law includes favorable changes for depreciating eligible assets
July 29, 2025
Categories: Depreciation, OBBBA, QPP, Qualified Production Property, Section 179, The One, Big, Beautiful Bill
The One Big Beautiful Bill Act (OBBBA) includes a number of beneficial changes that will help small business taxpayers. Perhaps the biggest and best changes are liberalized rules for depreciating business assets. Here’s what you need to know. 100% bonus depreciation is back The new law permanently restores 100% first-year depreciation for eligible assets acquired and placed in service after January 19, 2025. The last time 100% bonus depreciation was allowed for eligible assets was in
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Significant business tax provisions in the One, Big, Beautiful Bill Act
July 22, 2025
Categories: Depreciation, Interest Expense, OBBBA, QSBS, R&E, Section 179, The One, Big, Beautiful Bill
The One, Big, Beautiful Bill Act (OBBBA) was signed into law on July 4. The new law includes a number of favorable changes that will affect small business taxpayers, and some unfavorable changes too. Here’s a quick summary of some of the most important provisions. First-year bonus depreciation The OBBBA permanently restores the 100% first-year depreciation deduction for eligible assets acquired after January 19, 2025. This is up from the 40% bonus depreciation rate for most eligible assets
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Understanding spousal IRAs: A smart retirement strategy for couples
July 16, 2025
Categories: IRA
Retirement planning is essential for all families, but it can be especially critical for couples where one spouse earns little to no income. In such cases, a spousal IRA can be an effective and often overlooked tool to help build retirement savings for both partners — even if only one spouse is employed. It’s worth taking a closer look at how these accounts work and what the contribution limits are. A spousal IRA isn’t a separate type of account created by the IRS, but rather
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Tap into the 20% rehabilitation tax credit for business space improvements
July 16, 2025
Categories: QRE, Rehabilitation Tax Credit, TCJA
If your business occupies a large space and you’re planning to relocate, expand or renovate in the future, consider the potential benefits of the rehabilitation tax credit. This could be particularly valuable if you’re interested in historic properties. The credit is equal to 20% of the qualified rehabilitation expenditures (QREs) for a qualified rehabilitated building that’s also a certified historic structure by the National Park Service. A qualified rehabilitated building
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Milestone moments: How age affects certain tax provisions
July 15, 2025
Categories: Catch Up Contributions, CESA, Early Withdrawal, kiddie tax, RMD
They say age is just a number — but in the world of tax law, it’s much more than that. As you move through your life, the IRS treats you differently because key tax rules kick in at specific ages. Here are some important age-related tax milestones for you and loved ones to keep in mind as the years fly by. Ages 0–23: The kiddie tax The kiddie tax can potentially apply to your child, grandchild or other loved one until age 24. Specifically, a child or young adult’s unearned
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Startup costs and taxes: What you need to know before filing
July 15, 2025
Categories: New Business, Start-Up Costs
The U.S. Census Bureau reports there were nearly 447,000 new business applications in May of 2025. The bureau measures this by tracking the number of businesses applying for an Employer Identification Number. If you’re one of the entrepreneurs, you may not know that many of the expenses incurred by start-ups can’t currently be deducted on your tax return. You should be aware that the way you handle some of your initial expenses can make a large difference in your federal tax bill. How
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Is college financial aid taxable? A crash course for families
July 9, 2025
Categories: College Aid, Financial Aid
College can be expensive. According to the College Board, the average sticker price for tuition and fees at private colleges was $43,350 for the 2024–2025 school year. The average cost for tuition and fees for out-of-state students at public colleges was $30,780. For in-state students, the cost was $11,610. Of course, there are additional costs for housing, food, books, supplies, transportation and incidentals that can add thousands to the total. Fortunately, a surprisingly high percentage
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DOs and DON’Ts to help protect your business expense deductions
July 9, 2025
Categories: Business, Deductions, expenses
If you’re claiming deductions for business meals or vehicle expenses, expect the IRS to closely review them. In some cases, taxpayers have incomplete documentation or try to create records months (or years) later. In doing so, they fail to meet the strict substantiation requirements set forth under tax law. Tax auditors are adept at rooting out inconsistencies, omissions and errors in taxpayers’ records, as illustrated by one recent U.S. Tax Court case. (T.C. Memo. 2024-82) Facts of
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Are you missing a valuable tax deduction for Medicare premiums?
July 9, 2025
Categories: medical expense, Medicare
If you’re age 65 or older and enrolled in basic Medicare insurance, you may need to pay additional premiums to receive more comprehensive coverage. These extra premiums can be expensive, particularly for married couples, since both spouses incur the costs. However, there may be a silver lining: You could be eligible for a tax deduction for the premiums you pay. Deducting medical expenses: What counts? For purposes of claiming an itemized deduction for medical expenses on your tax return,