Don’t let the IRS treat your sideline as a hobby

Do you operate a side gig in addition to your regular day job? Whether you’ve turned a love for crafting into an online store or you play the guitar at a local venue, you’ll need to report the income from your sideline activity on your tax return. But can you deduct the related expenses? The […]

Are You Taking Full Advantage of the 20% QBI Deduction?

Sole proprietors and owners of pass-through entities, listen up! Last year’s tax legislation made permanent the Section 199A qualified business income (QBI) deduction. Generally, QBI is the net amount of qualified income, gain, deduction and loss from a U.S. business. In most circumstances, the deduction equals 20% of QBI (not to exceed 20% of taxable […]

Balancing financial reporting needs with compliance costs

Issuing financial statements that comply with U.S. Generally Accepted Accounting Principles (GAAP) requires significant time, expertise and resources. Although lenders and other stakeholders often prefer — or require — GAAP statements, some small business owners may find that tax-basis reporting is a practical alternative. If you use financial statements only for tax compliance and internal […]

Loaned Money to a Friend or Family Member? You May Be Able to Deduct the Loss

If you make a personal loan to a family member or friend, are you out of luck if he or she doesn’t pay you back? Actually, you may be able to deduct “bad debt” as a short-term capital loss if you follow the rules: 1) You must have made a bona fide loan, not a […]

HSAs vs. FSAs

Tax Debt Can Affect Your Passport: What You Need to Know

If you have significant tax debt, your passport may be at risk. The IRS defines seriously delinquent tax debt (SDTD) as an unpaid, legally enforceable federal tax liability exceeding $66,000 (for 2026) for which a federal tax lien has been filed and administrative remedies have been exhausted or a levy has been issued. Under a […]

There is still time to reduce tax liablility

Business owners and self-employed individuals with extended 2025 federal income tax returns may still have an opportunity to reduce their 2025 federal income tax liability. If you extended your tax return, you can make deductible 2025 employer contributions to certain retirement plans until the Oct. 15, 2026, extended deadline. If you don’t already have a […]

Disaster Strikes? Reconstructing Your Financial Records

If a wildfire, hurricane or other disaster destroys important financial records, you may be able to reconstruct them for tax purposes, insurance claims or federal assistance. You can access tax transcripts through an IRS Individual Online Account or by request. Banks and credit card companies may provide past statements. Photos, receipts and canceled checks can […]

Could a Roth Conversion Make Sense for You?

If you have a traditional IRA, you may want to consider converting some or all of the balance to a Roth IRA. Such moves typically allow people to turn tax-deferred future growth into tax-free growth and take advantage of a Roth IRA’s estate planning benefits. The converted amount is taxable the year of the conversion. […]

Accounting for business combinations

Mergers and acquisitions (M&A) provide growth opportunities. But these transactions also introduce accounting complexities. Here’s a closer look at the rules for reporting business combinations under U.S. Generally Accepted Accounting Principles (GAAP). Getting it right is essential to managing stakeholder expectations and providing a solid foundation for future financial reporting. Breaking down the purchase price […]