Tax Articles

Business-related meal deductions can still offer valuable tax savings, but recent law changes have tightened what qualifies. Generally, meals are 50% deductible if they meet specific criteria, while certain exceptions allow for 100% deductions. Contact us to clarify the rules and optimize your deductions.

Married couples deciding between a joint trust and separate trusts should weigh factors like simplicity, asset protection, and tax implications. Joint trusts offer ease of management and shared control, while separate trusts provide greater creditor protection and estate tax planning opportunities. The best choice depends on each couple's financial situation, family needs, and state laws.

Explore tax credits for boosting research activities, bonus credits, tax credit monetization, and more in this comprehensive guide to business incentives and tax credits.

This guide identifies tax strategies and considers how they may be influenced by recent administrative guidance and potential legislative changes that remain under consideration. A taxpayer’s tax accounting methods determine when income is recognized, and costs are deducted for income tax purposes.

Self-employment tax combines Social Security and Medicare taxes, with a 15.3% rate applied to the first $168,600 of net income in 2024. Future inflation adjustments will likely increase the tax burden, making strategies like restructuring as an S corporation a potential way to reduce costs. Understanding SE tax calculations and exploring tax-saving options can help self-employed individuals manage their financial obligations effectively.

The IRS has released the annual inflation adjustments for the 2025 tax year, which will affect taxpayers when they file their returns in 2026 including notable changes.

Lumsden McCormick presents a highlight summary of the significant cost-of-living adjustments (COLA) effective for 2025.

Spousal property rights, including the "elective share," are governed by state law and can significantly impact estate plans. Strategies such as transferring assets to a revocable trust may help mitigate the effect of these rights, but laws vary by state, making professional guidance essential for effective planning.

The Tax Cuts and Jobs Act requires businesses to amortize rather than immediately deduct R&E expenses, resulting in higher tax bills and reduced cash flow for many manufacturers. To offset this impact, companies can leverage tools like the research tax credit, cost segregation studies for accelerated depreciation, and reclassification of certain expenses. Congress may revisit this issue in 2025, potentially restoring immediate expensing for R&E costs.

As a business owner, understanding which travel expenses are tax-deductible can significantly impact your bottom line. This guide covers the essentials of deducting travel costs, from transportation and lodging to meals and tips, ensuring you stay compliant and maximize your tax savings. Proper recordkeeping and knowledge of your tax home are crucial for claiming these deductions.