Retirement Doesn’t Mean Your Income Is Tax-Free

Some new retirees are surprised to learn their retirement income — for example, from Social Security and tax-deferred retirement plans — is taxed. Withdrawals from traditional (but not Roth) IRAs and 401(k) plans, and pension and annuity benefits (depending on how the accounts were funded), are generally taxable. How much of your Social Security benefits […]

Tax Planning Shouldn’t Wait Until Tax Season

Tax planning should be a year-round activity, not something to think about only when preparing to file your tax return. The IRS offers tips and resources in its recently issued Publication 5349-A, Year-Round Tax Planning Is for Everyone. Among other things, the IRS recommends reviewing your tax withholding and estimated tax payments, particularly after major […]

Tax planning for real estate investors

Many individuals invest in real estate to help diversify their portfolio, create an income stream for themselves from rental income and build net worth over time. Often, this is a side activity to a career in another field or running another type of business — not the individual’s primary source of income. Holdings might range […]

New IRS Rules Address IRA Errors and Missed Rollover Deadlines

Under Revenue Procedure 2026-33, the IRS has established a new program to help IRA owners and custodians correct certain IRA errors. The IRA Compliance Resolution System (ICRS) allows eligible errors to be corrected through requests to the IRS. Self-correction of IRA errors currently isn’t available under the ICRS. The program also provides a process for […]

Home Distilling and Federal Taxes: A Supreme Court Case to Watch

The U.S. Supreme Court has agreed to review an 1868 federal ban on distilling spirits at home. The tax connection? Challengers argue Congress exceeded its constitutional taxing power by prohibiting home distilling. Government attorneys say the restriction helps prevent evasion of federal excise taxes. Federal law makes home distilling a crime punishable by up to […]

Could the New Markets Tax Credit benefit your business?

Businesses in economically distressed communities often have difficulty obtaining capital for expansion, equipment, facilities and other investments. The New Markets Tax Credit (NMTC) encourages private investment in these underserved areas by offering federal income tax credits to qualifying investors. This credit was previously scheduled to expire on December 31, 2025. However, the One Big Beautiful […]

AICPA asks for extra time for employers to implement Trump Accounts

Sec. 530A accounts (also known as “Trump Accounts”) offer a new way to save for children’s futures — including through employer contributions. But in a recent letter to the IRS and Dept. of the Treasury, the American Institute of CPAs (AICPA) said employers are unlikely to be ready to implement Sec. 530A contribution programs this […]

Do you know the difference between Roth and Traditional IRA rules?

Roth IRAs debuted in 1998, but the difference between them and traditional IRAs can still cause confusion. Traditional IRA contributions are often tax deductible. Withdrawals, however, are usually taxable and may trigger a 10% penalty before age 59½. Roth contributions aren’t deductible, but you can withdraw them tax- and penalty-free any time. And withdrawals of […]

A closer look at shareholder advances

Shareholders sometimes provide funds to their businesses outside of their initial investment or regular capital contributions. These transfers — commonly referred to as shareholder advances — raise an important accounting question: Under U.S. Generally Accepted Accounting Principles (GAAP), should the business report the advance as a liability or as equity? The term “shareholder” technically refers […]

Partnership Owners: Can You Deduct Out-of-Pocket Business Expenses?

Owners of businesses taxed as partnerships sometimes pay work-related expenses out of pocket. Whether such payments are deductible for federal tax purposes depends largely on the partnership agreement, LLC operating agreement, or an established policy or practice. Allowable expenses may be deductible if the owner is required to bear them without reimbursement. Expenses that could […]