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 […]

Net operating loss deductions

Test your knowledge on Net operating loss deductions

The Scariest Thing This Halloween? A Tax Audit!

🎃 What’s scarier than ghosts, goblins, and things that go bump in the night? An IRS audit! Nobody wants an unexpected letter from the IRS or another taxing authority. A tax audit can be stressful, time-consuming, and costly—particularly when records are incomplete or questions arise about a tax return. While you can’t always prevent an […]

Building Improvements: Can Your Business Deduct the Costs Now?

Some small business owners making building improvements may not have to wait years to deduct all of the costs. A special IRS safe harbor lets qualifying small businesses deduct certain improvement costs immediately instead of depreciating them over several years. To qualify, the business’s average annual gross receipts must be $10 million or less for […]

Jury Duty Pay: Don’t Miss This Tax Deduction

Did you serve on jury duty this year? You may qualify for a federal income tax deduction. If your employer continued paying you while you served and required you to turn over the jury duty pay you received from the court, you generally can deduct the amount you remitted to your employer. This deduction is […]