Trump proposes changes to R&D credit

One of the many tax changes proposed by President-elect Donald Trump is to expand the Section 174 deduction for R&D expenditures. Under the Tax Cuts and Jobs Act (TCJA), R&D expenditures paid or incurred beginning in 2022 must be capitalized and amortized over five years for domestic R&D and over 15 years for foreign R&D. […]

Amended versus Superseding tax returns

What’s the difference between an amended tax return and a superseding return? Amended returns can be filed to correct or change information on a timely filed return, after the original or extended due date has passed. However, a superseding return is a rare opportunity to change or correct a filed return before the original or […]

Tax outlook changes

What does a Donald Trump victory mean for taxes? Many provisions in his signature tax legislation from his first time in the White House, the Tax Cuts and Jobs Act (TCJA), are scheduled to expire at the end of 2025. Now, there is a better chance that most will be extended. But the former and […]

Gifts to employees and clients

As your business gets ready for the holiday giving season, keep the following tax limits in mind. Your company can only deduct up to $25 per person per year for gifts to recipients such as clients and business partners. You can also generally deduct $25 per person per year for employee gifts. And, as long […]

Is my IRA contribution tax deductible?

Not everyone is eligible to make tax-deductible contributions to a traditional IRA account. For example, for 2025, eligibility for single taxpayers who also contribute to a workplace retirement plan (such as a 401(k) plan), will phase out with income between $79,000 and $89,000. For joint filers, the phaseout range for the spouse who contributes to […]

The SIMPLE retirement plan option

A Savings Incentive Match Plan for Employees (SIMPLE) comes in two flavors: the SIMPLE IRA or the SIMPLE 401(k). Business owners often opt for the SIMPLE IRA. Contributions to a SIMPLE are made on a pretax basis. Contribution limits to SIMPLEs are adjusted annually for inflation. In 2025, employees may generally elect to contribute up […]

IRS issues 2025 retirement plan numbers

The IRS has issued 2025 retirement plan numbers. In 2025, individuals with IRAs can contribute up to $7,000 (the same as in 2024). The IRA catch-up contribution for those age 50 or over will remain at $1,000. For those with 401(k) plans, the 2025 contribution limit will increase to $23,500, up from $23,000 in 2024. […]

Early distributions from an IRA can be costly

If you take an early distribution from your traditional IRA, (before you reach age 59½), you may be hit with a penalty. In addition to the income tax you’ll pay for the withdrawal, you’ll typically pay a 10% early withdrawal penalty. Exceptions exist, such as withdrawals to pay higher education costs. Suppose you’re under 59½, […]

Deductible Bonus payments

November’s here. With the holiday season and year end coming soon, many employers are planning to pay employee bonuses. If you are, the timing of bonus payments may help reduce your business tax. For example, cash-basis businesses must deduct bonuses in the year paid. So, you can pay bonuses in late 2024 or early 2025, […]

Receive an inheritance?

If you receive an inheritance valued at less than the estate tax exemption amount ($13.61 million in 2024 and $13.99 million in 2025), it isn’t subject to federal tax. Regardless of an estate’s size, heirs don’t have to report to the IRS, either. However, an estate’s executor must file a final tax return for the […]