For many taxpayers, tax planning becomes a priority only when year-end is approaching—or worse, when it is time to file the return. But by then, some of the best planning opportunities may already be gone.

A mid-year tax checkup gives you a chance to look at where things stand while there is still time to make smart adjustments. Whether you own a small business, are self-employed, manage rental properties, or have experienced a change in income, reviewing your tax picture before the final months of the year can help reduce surprises, improve cash flow, and support better financial decisions.

For Naples-area business owners and individuals, this is especially important in a year where income, expenses, interest rates, insurance costs, payroll, and investment activity may look different than expected.

Why a Mid-Year Tax Checkup Matters

A mid-year review is not just about estimating what you may owe. It is about using the information available now to make informed decisions before deadlines limit your options.

1. You Still Have Time to Adjust Estimated Tax Payments

If you are self-employed, own a business, receive rental income, or have income that is not fully covered by withholding, estimated tax payments can be easy to miscalculate.

By reviewing your income and deductions mid-year, we can help determine whether your current payments are on track. If you are underpaying, there may still be time to adjust future payments and reduce the risk of a large balance due. If you are overpaying, you may be able to keep more cash available for your business or household needs.

2. Business Income May Not Be Tracking as Expected

Many small business owners start the year with one set of expectations, only to find that revenue, expenses, staffing, or margins have changed significantly by summer.
A mid-year tax planning review can help answer questions such as:

• Is the business more profitable than expected?
• Are expenses being categorized correctly?
• Are owner draws, payroll, or distributions being handled properly?
• Should we revisit cash flow expectations for the rest of the year?
• Are there upcoming purchases or investments that should be planned strategically?

The earlier these questions are reviewed, the more options you may have.

3. Bookkeeping Problems Are Easier to Fix Before Year-End

If your books are behind, incomplete, or inaccurate, waiting until tax season can create unnecessary stress and potentially higher cleanup costs.

A mid-year bookkeeping review can identify issues such as unreconciled accounts, misclassified expenses, duplicate transactions, personal expenses mixed with business expenses, or missing documentation. Addressing these problems now can make year-end reporting and tax preparation much smoother.
For businesses, clean books are also essential for making better decisions—not just filing a tax return.

4. Cash Flow Planning Becomes More Accurate

Tax planning and cash flow planning go hand in hand. A business may show a profit but still feel tight on cash because of debt payments, inventory purchases, equipment costs, payroll, taxes, or owner distributions.

A mid-year checkup can help you understand where cash is going and how future tax payments may affect liquidity. This is especially valuable for small business owners and self-employed individuals who need to plan for both business operations and personal tax obligations.

5. Waiting Until December Can Limit Your Options

Some tax strategies require action before year-end, and others require planning even earlier. If you wait until December, there may be less time to evaluate options, gather information, update books, or implement changes.

A mid-year review gives you time to plan thoughtfully rather than make rushed decisions at the end of the year.

Common Issues Found During a Mid-Year Review

A mid-year tax checkup often uncovers items that clients did not realize could affect their tax situation. Common findings include:

• Estimated tax payments that are too low or too high
• Business income that has increased significantly from the prior year
• Expenses that are miscategorized or missing from the books
• Bank or credit card accounts that have not been reconciled
• Personal and business transactions mixed together
• Rental property expenses that are not being tracked properly
• Payroll, owner draws, or distributions that need review
• Large equipment purchases or planned investments that need timing analysis
• Changes in filing status, dependents, withholding, or household income
• Prior-year tax surprises that have not been addressed for the current year

Finding these issues in the middle of the year gives you time to correct course.

Who Should Schedule a Mid-Year Tax Checkup?

A mid-year tax checkup can be valuable for many taxpayers, but it is especially helpful if you fall into one of the following categories.

Small Business Owners
If you own a business, your tax picture depends on more than annual revenue. Profitability, payroll, owner compensation, debt, entity structure, and bookkeeping accuracy can all affect your tax outcome.
A mid-year review helps determine whether your business is on track and whether additional tax planning or advisory support would be beneficial before year-end.

Self-Employed Individuals and Independent Contractors
Self-employed taxpayers often have variable income and limited withholding, which makes estimated tax planning especially important. Reviewing income and expenses mid-year can help reduce the risk of an unexpected tax bill.

Rental Property Owners
Rental real estate activity can create unique tax and cash flow considerations. Repairs, improvements, mortgage interest, insurance, property taxes, depreciation, and rental income should be tracked carefully throughout the year.
A mid-year checkup can help confirm that rental activity is being recorded properly and that you are prepared for tax season.

Individuals With Changing Income
You may benefit from a review if you have experienced or expect any of the following:

• A new job or job change
• A bonus, commission, or significant raise
• Stock sales or investment gains
• Retirement plan distributions
• Social Security or pension income changes
• A home sale or real estate transaction
• Marriage, divorce, or a dependent change
• A new business or side income

When income changes, withholding and estimated tax payments may need to change as well.

What We Review During a Mid-Year Tax Checkup

Our mid-year tax checkup is designed to give you a clearer picture of where you stand and what steps may make sense before year-end.

Depending on your situation, we may review:

• Year-to-date income and deductions
• Current federal tax withholding and estimated tax payments
• Business profit and loss activity
• Bookkeeping accuracy and cleanup needs
• Rental property income and expenses
• Cash flow trends and upcoming tax obligations
• Payroll, contractor payments, and owner compensation
• Planned equipment purchases or major expenses
• Retirement contribution opportunities
• Prior-year tax results and current-year projections
• Potential planning opportunities before year-end

The goal is to identify practical next steps—not overwhelm you with technical tax language. You will leave with a better understanding of your current tax position and what actions may help before deadlines arrive.

How This Connects to Year-End Planning

Mid-year planning and year-end planning work best together.
A mid-year checkup helps identify issues early. Year-end planning then allows us to refine projections, confirm remaining action items, and make final adjustments before December 31.

For many clients, this process may include:

• Updating bookkeeping records
• Adjusting estimated tax payments
• Reviewing cash flow needs
• Planning retirement contributions
• Evaluating business purchases
• Preparing for 1099 requirements
• Reviewing entity structure or owner compensation
• Scheduling advisory meetings for the next year

By starting earlier, you give yourself more time to make thoughtful financial decisions.

Do Not Wait Until Tax Season to Find Out Where You Stand Tax preparation reports what already happened. Tax planning helps you make decisions while there is still time to act.

If your income has changed, your business is growing, your books are behind, or you simply want to avoid another tax-time surprise, now is a smart time to schedule a mid-year tax checkup.

Our Naples, Florida firm works with small business owners, self-employed individuals, rental property owners, and individuals with changing income to provide tax planning, bookkeeping cleanup, estimated tax reviews, cash flow planning, and advisory services.

Schedule Your Mid-Year Tax Checkup

Before year-end planning deadlines approach, contact our office to schedule your mid-year tax checkup. We will help you review where you stand, identify potential issues, and create a practical plan for the remainder of the year.

Schedule your mid-year tax checkup today so you have time to plan—not just react.

For many Naples-area business owners, tax season is when bookkeeping issues come to the surface. A return can only be prepared accurately (and efficiently) when your records are complete, consistent, and “tax-ready.”

If your books are even slightly off during the year, it can snowball into higher tax preparation costs, missed deductions, delayed filing, and less confidence in your estimated tax payments and cash flow planning. The good news: most bookkeeping problems are fixable—especially when they’re caught before year-end.

Below are common bookkeeping red flags we see for small business owners, self-employed individuals, rental property owners, and closely held businesses—and what to do about them.

Why Bookkeeping Quality Matters for Tax Preparation and Tax Planning

Clean bookkeeping is not just about “getting the numbers in.” It’s the foundation for:

• Accurate tax returns (business and personal)
• Better tax planning throughout the year (not just in March or April)
• More reliable estimated tax reviews so you can avoid unpleasant surprises
• Clear financial statements that support lending, buying equipment, hiring, and growth decisions
• Cash flow planning based on reality—not guesswork

When bookkeeping is messy, tax preparation becomes a forensic project. When it’s clean, your CPA can focus on planning opportunities, not cleanup.

Bookkeeping Red Flags to Watch For

1. Bank and Credit Card Accounts Are Not Reconciled Monthly

If accounts are not reconciled, your reports may be missing transactions—or showing duplicates. This can distort income, expenses, loan balances, and owner distributions.
Why it matters at tax time: Unreconciled accounts often lead to extra back-and-forth, higher prep time, and increased risk of reporting errors.

2. Large “Ask My Accountant” or Uncategorized Balances

Uncategorized expenses, vague “miscellaneous” accounts, or large “suspense” balances are a sign that the books are not complete.
Why it matters at tax time: If expenses are not categorized correctly, you may miss deductions or end up with totals that don’t tie out to supporting documentation.

3. Personal and Business Transactions Are Mixed Together

This is one of the most common issues for closely held businesses and self-employed taxpayers—especially when multiple cards or accounts are used interchangeably.
Why it matters at tax time: Mixed transactions slow down tax prep, can create compliance risk, and make it harder to document legitimate business deductions.

4. Owner Pay, Draws, and Distributions Are Not Being Tracked Correctly

How an owner takes money out of the business matters, and the bookkeeping should reflect it clearly—especially for S corporations and partnerships.

Why it matters at tax time: Misclassified owner activity can create confusion, impact tax reporting, and make planning for future tax payments more difficult.

5. Payroll and Contractor Payments Don’t Match the Books

Payroll reports, payroll tax payments, and contractor payments should align with your accounting records.

Why it matters at tax time: Misalignment can cause errors in wage reporting, tax deductions, and year-end reporting—and can complicate W-2 and 1099 preparation.

6. You’re Using Your Accounting Software Like a Check Register

If your bookkeeping system isn’t set up to produce accurate financial statements—profit and loss, balance sheet, and clear expense detail—it’s hard to make informed decisions.

Why it matters at tax time: Tax returns rely on accurate totals and classifications. A “check register” approach often requires significant adjustments and cleanup.

7. Your Financial Statements Don’t Make Sense (or You Avoid Looking at Them)

If you can’t confidently answer basic questions—Are we profitable? Where is cash going? What did we pay contractors?—your books may not be reliable.
Why it matters at tax time: Unreliable statements lead to unreliable tax estimates. That can mean underpaying (and facing a large balance due) or overpaying (and straining cash flow).

8. Rental Property Activity Is Not Tracked by Property (or Not Tracked at All)

Rental property owners often track expenses “somewhere,” but not in a way that cleanly separates properties, repairs vs. improvements, or reimbursable items.

Why it matters at tax time: Poor rental bookkeeping can lead to missed deductions, inaccurate income reporting, and unnecessary delays during tax preparation.

9. You’re Behind—And Catch-Up Keeps Getting Pushed Off

If you’re two, three, or six months behind, the problem usually gets harder (and more expensive) to fix as time passes.

Why it matters at tax time: Catch-up work done under a deadline costs more, creates stress, and can limit tax planning options.

How Poor Bookkeeping Can Increase Tax Prep Costs (and Miss Deductions)

When bookkeeping is not tax-ready, tax preparation often requires:

• Reclassifying expenses to the correct tax categories
• Rebuilding income records from bank deposits
• Identifying duplicate entries and missing transactions
• Separating personal vs. business spending
• Cleaning up balance sheet items (loans, credit cards, equity, retained earnings)
• Requesting additional documentation and explanations

That extra time increases preparation fees and can still leave money on the table if deductions aren’t supported or aren’t captured in the books. Clean records also make it easier to identify planning opportunities—such as timing purchases, managing owner compensation, or adjusting estimated payments before year-end.

What a Bookkeeping Cleanup Typically Involves

A bookkeeping cleanup is designed to turn “messy books” into tax-ready financials. Depending on your situation, that may include:

• Reconciling bank and credit card accounts
• Reviewing and correcting account setup (chart of accounts)
• Cleaning up uncategorized and misclassified transactions
• Separating personal and business activity and documenting adjustments
• Reviewing payroll and contractor payments for proper classification
• Ensuring loan and credit card balances are accurate
• Producing clean monthly financial statements you can rely on

Once the books are cleaned up, many clients choose ongoing support through monthly accounting—so the problem doesn’t return next year.

The Best Time to Fix Bookkeeping Issues Is Before Tax Season

If you wait until tax documents arrive, you may feel forced into rushed decisions and last-minute cleanup. A proactive review allows time to:

• Get your books caught up
• Confirm you’re on track with estimated tax payments
• Improve cash flow planning for the remainder of the year
• Prepare confidently for 1099 preparation
• Use advisory support to make better business decisions before deadlines hit

Schedule a Bookkeeping Review or Cleanup (Naples, FL)

If you’re not sure whether your books are tax-ready—or you already know they’re behind—now is a great time to schedule a bookkeeping review. Our Naples, Florida team helps small business owners, self-employed individuals, and rental property owners with bookkeeping cleanup, monthly accounting, tax-ready financials, estimated tax review, cash flow planning, 1099 preparation, and ongoing advisory services.
To get started, contact our office to schedule a bookkeeping review or cleanup before tax season. The earlier we review your records, the more options you have—and the smoother tax time will be.

A Practical Note for Condo and HOA Residents: Understanding Association Financial Reporting

Helping Community Associations Stay Financially Prepared.

TAXPG’s affiliate resource for audit, review, and compilation support

Many of our clients live in condominium, HOA, or community associations throughout Southwest Florida, including the Naples/Fort Myers and Tampa/St. Petersburg areas. Because association finances affect assessments, reserves, insurance, capital projects, and long-term planning, we wanted to share a practical reminder about the importance of clear and timely financial reporting.

TAXPG is affiliated with Cukierski & Associates, a CPA firm with deep experience serving community associations. C&A provides audit, review, compilation, and related advisory services for condominium associations, homeowners associations, and other community association clients. You can also find Cukierski listed on our website as an affiliate resource for these services: Cukierski.cpa

Why Association Financial Reporting Matters

Community associations often have annual financial reporting responsibilities, and larger or more complex associations may benefit from additional CPA support. Depending on the association’s size, governing documents, lender or insurance requirements, board needs, and applicable state requirements, an association may need or choose to obtain services such as:

• Compiled financial statements to organize financial information in a formal CPA-prepared format
• Reviewed financial statements to provide limited assurance and additional analytical procedures
• Audited financial statements to provide a higher level of assurance over the association’s financial statements
• Advisory support for budgeting, reserves, internal controls, capital projects, and board financial questions

Because requirements can vary by association and should be verified based on the association’s specific facts, boards and property managers should review their governing documents and consult with qualified professionals before making financial reporting decisions.

Florida Statutory Financial Reporting Requirements (Condominium & HOA Associations)

If your association is located in Florida, state law generally ties the required type of annual financial report to the association’s total annual revenues.

Condominium associations (Fla. Stat. § 718.111(13))

Under Florida’s condominium statute, the annual financial reporting requirement generally depends on total annual revenues:

• Less than $150,000: Report of cash receipts and expenditures
• $150,000 or more but less than $300,000: Compiled financial statements
• At least $300,000 but less than $500,000: Reviewed financial statements
• $500,000 or more: Audited financial statements

Homeowners’ associations (Fla. Stat. § 720.303(7))

Under Florida’s HOA statute, the annual financial reporting requirement generally depends on total annual revenues:

• Less than $150,000: Report of cash receipts and expenditures
• $150,000 or more but less than $300,000: Compiled financial statements
• At least $300,000 but less than $500,000: Reviewed financial statements
• $500,000 or more: Audited financial statements

In addition, certain larger HOAs have additional requirements—for example, HOAs with at least 1,000 parcels require audited financial statements regardless of total annual revenues (Fla. Stat. § 720.303(7)).

Timing and delivery (Florida statutory timing framework)

Florida statutes generally require that the annual financial report (not to be confused with the audit/review/compilation report) be prepared/completed (or contracted for) within 90 days after fiscal year-end (or by the date provided in the bylaws), and that it be delivered to owners (or notice of availability provided) within 21 days after completion and no later than 120 days after fiscal year-end (or bylaw date) (Fla. Stat. § 718.111(13); Fla. Stat. § 720.303(7)).

A brief note on waivers / lower-level reporting

Florida law contains provisions that may allow, in certain situations, a properly approved waiver or a lower level of reporting. Because these rules can be technical and can vary based on association type, governing documents, and proper statutory approval procedures, boards and managers should confirm the applicable requirements with qualified legal professionals (Fla. Stat. § 718.111(13); Fla. Stat. § 720.303(7)).

Practical Checklist for Board Members and Association Residents

If you serve on a board, work with a property manager, or simply want to better understand your association’s financial health, the following questions may be useful:

• What type of financial reporting is our association required to obtain this year?
• Do our governing documents require an audit, review, or compilation?
• Are our annual revenues, reserves, or capital projects increasing in complexity?
• Do we have upcoming repair, maintenance, reserve, or insurance-related funding decisions?
• Are board members receiving financial statements that are clear, timely, and easy to understand?
• Would a CPA-prepared compilation, review, or audit help improve board confidence and transparency?
• Do we have appropriate financial controls over cash, assessments, vendor payments, and reserve funds?
• Would our property manager or board benefit from an outside CPA perspective before year-end?

When to Consider Additional CPA Support

An association may want to consult with a CPA firm if it is experiencing any of the following:

• Significant reserve or capital project planning
• Increased insurance scrutiny or financial documentation requests
• Rapidly rising assessments, repair costs, or operating expenses
• Board turnover or concerns about continuity of financial knowledge
• Questions from owners about transparency or financial reporting
• Uncertainty about whether an audit, review, or compilation is appropriate
• A desire to improve budgeting, internal controls, or long-term financial planning

TAXPG’s Affiliate Resource

For clients involved with a condominium, HOA, or community association, TAXPG can help connect you with Cukierski & Associates for community association audit, review, compilation, and advisory support. The goal is not to create unnecessary work for associations, but to help boards and property managers understand their options and make informed financial reporting decisions.

If you would like to learn more, please contact TAXPG at Melissa Propatier, or reach out directly to Cukierski & Associates at  847-496-7180. You may also visit our affiliate page here: Cukierski.cpa

Dear Valued Client,

Your tax return doesn’t have to be stressful.

Our team is ready to prepare your 2025 tax return, but we require your information no later than August 15^th, 2026 to ensure your return is completed and filed on time.

✔ Here’s What We Need

Please submit all of your tax documents by August 15, 2026, including any income statements, deductions, credits, or other tax-related information.

📂 How to Send Your Documents

Choose whichever option is most convenient for you:

🔒 Secure Client Portal

Upload your documents anytime through our secure portal.

📍 Office Drop-Off

875 94th Avenue N.

Naples, FL 34108

 

📧 Questions?

Not sure if a document is needed? Contact us—we’re happy to help.

Don’t Let a QR Code Cost You: How to Avoid the Latest IRS Scam

Scammers are constantly finding new ways to steal personal and financial information, and one of the latest tactics involves something many of us use every day: QR codes.

QR code can seem harmless, especially when it appears on what looks like an official IRS notice. But before you scan, it’s important to know that scammers are using fake IRS letters and fraudulent QR codes to direct taxpayers to websites designed to steal sensitive information.

How the Scam Works

You receive a letter that appears to come from the IRS. It may include official-looking logos, realistic formatting, and even a legitimate IRS phone number or website listed on the notice.

The catch? The QR code.

Instead of taking you to an official IRS webpage, the code may send you to a fake website that asks for personal information such as:

• Social Security numbers
• Bank account information
• IRS account login credentials
• PINs or passwords

Once this information is submitted, scammers can use it to commit identity theft or financial fraud.

Why This Scam Is So Convincing

QR codes have become part of everyday life, making them an easy target for scammers.

A fake IRS notice may appear completely legitimate at first glance. In some cases, even the website address or phone number printed on the letter may be accurate. The fraudulent QR code is often the only part of the notice designed to deceive you.
That’s why it’s important to verify before you scan.

How to Protect Yourself

If you receive an unexpected IRS notice, keep these tips in mind:

● Don’t scan QR codes on unexpected letters or notices.
● Go directly to IRS.gov by typing the address into your web browser.
● Never provide personal or financial information through links received from unsolicited emails, text messages, or social media.
● If you’re unsure whether a notice is legitimate, contact the IRS using information found on IRS.gov, not the information provided by a suspicious message or QR code.

Remember: The IRS Won’t Contact You This Way

The IRS does not initiate contact with taxpayers by email, text message, or social media to request personal or financial information. This includes requests for:

• Passwords
• PIN numbers
• Bank account information
• Credit card information
• Other sensitive financial details

If you receive a message asking for this information, it’s almost certainly a scam.

Stay Informed

Tax scams continue to evolve each year, making awareness one of your best defenses. The IRS publishes its annual Dirty Dozen list to help taxpayers recognize the most common scams targeting individuals and businesses.

Review the 2026 Dirty Dozen Tax Scams to learn more about the latest threats and how to protect yourself.

Staying cautious and taking a few extra moments to verify before clicking or scanning can help protect your identity, your finances, and your peace of mind. When in doubt, skip the QR code and go directly to IRS.gov.

The IRS may have wrongly charged you penalties during COVID. Get them refunded.

Which Tax Years Could Be Affected?

The issue may affect taxpayers with federal tax deadlines that fell during the COVID-19 disaster period, including certain deadlines related to 2019, 2020, 2021, and 2022 tax returns.
In general, the refund opportunity may be relevant for taxpayers who:

• Filed or paid after the original due date, but before July 10, 2023
• Were assessed late-filing penalties, late-payment penalties, estimated tax penalties, or certain interest during the COVID-19 disaster period
• Paid those penalties or interest and may now want to preserve a potential refund claim

Why July 10, 2026, Matters

The statute of limitations for refund claims is generally three years from the date a return was filed or two years from the date the tax was paid, whichever is later. For returns treated as filed by the postponed July 10, 2023, deadline, the three-year window may expire on July 10, 2026.

Taxpayers who believe they may have paid penalties or interest affected by the Kwong decision should consult their tax advisor as soon as possible. A protective claim may help keep the tax year open while the issue continues to be litigated.
In many cases, taxpayers may need to file Form 843, Claim for Refund and Request for Abatement, with the IRS. This form is generally paper filed, so taxpayers should allow enough time for preparation, mailing, and documentation before the July 10, 2026, deadline.

What Should Taxpayers Do Now?

Taxpayers who paid IRS penalties or interest connected to COVID-era filing or payment deadlines should consider taking the following steps:

• Review IRS account transcripts for 2019, 2020, 2021, and 2022
• Identify any penalties or interest assessed during the COVID-19 disaster period
• Determine whether payments were made before July 10, 2023
• Consult a tax advisor about whether a protective refund claim may be appropriate
• File any required claim before the applicable deadline

The opportunity is still developing, and refunds are not guaranteed. However, for taxpayers who paid significant penalties or interest during the pandemic period, the potential benefit may be worth reviewing before the July 10, 2026, deadline.
If you paid IRS penalties or interest related to COVID-era filing or payment deadlines, ML&R can help you evaluate whether a protective refund claim may be appropriate.

How Did This Issue Arise?

In late 2019, Congress enacted changes to Internal Revenue Code Section 7508A, which provided an automatic 60-day postponement for certain federal tax filing and payment deadlines following a federally declared disaster.
On January 20, 2020, the COVID-19 pandemic was declared a federal disaster. Because the original declaration did not include a formal end date, taxpayers have argued that certain federal tax deadlines were automatically postponed for the duration of the disaster period, plus an additional 60 days.

President Biden later ended the COVID-19 national emergency effective May 11, 2023. Under the reasoning in Kwong, that end date, plus the additional 60-day period, created a postponed deadline of July 10, 2023. In 2021, Congress amended the law to prevent this type of open-ended extension for future disasters, but that change applies prospectively and does not resolve the question for the COVID-19 disaster period.

As a result, some taxpayers and practitioners are arguing that the IRS should not have assessed certain interest or penalties on underpaid, late-paid, or late-filed taxes during that period.

Is the Kwong Decision Final?

No. The law remains unsettled, and the government is expected to continue challenging this position. Because the issue may take years to resolve through additional litigation or IRS guidance, taxpayers who may be affected should not assume refunds will be automatic.

However, waiting too long could cause taxpayers to lose the ability to file a claim. That is why many tax advisors are encouraging affected taxpayers to consider filing a protective refund claim before the applicable statute of limitations expires

Taxpayers should review IRS transcripts and payment records to determine whether a protective claim may be appropriate.

Important Tax Filing Deadlines | Are You Prepared?

 

Key Deadlines

• March 15th, 2026 – Filing deadline for business taxes (S-Corporations and Partnerships)
• April 15th, 2026 –  Filing deadline for Personal Taxes and Estate/Trust return (Form 1041) and business taxes (C-Corporation)

Need additional time?
Our office can file a 6 month extension of time on the client’s behalf, at no additional charge.

• September 15th, 2026 – Extension filing deadline for Filing deadline for business taxes (S-Corporations and Partnerships)
• October 15th, 2026 – Extension filing deadline for Personal Taxes and Estate/Trust return (Form 1041) and business taxes (C-Corporation)

Learn more about the Safe-Harbor rule here.

One, Big, Beautiful Bill provisions –

– and what that means for you as an individual

For everyday taxpayers, the bill brings tax credits that can benefit families and some workers. But it also introduces stricter eligibility for some safety-net programs.

Key Provisions:

• Child Tax Credit: Raised to $2,200 per child, with a portion refundable. Applies only to qualifying dependents and is indexed for inflation.
• Dependent Credit: $500 for other qualifying dependents, such as elderly parents.
• Senior Deduction: Taxpayers of 65 years or older can claim an extra $6,000 (or $12,000 for married couples filing jointly where both filers are 65 years old or older) standard deduction through 2028. However, this amount starts to phase out for individuals making more than $75,000 (or joint filers making more than $150,000). Seniors with an income of $175,000 and couples with a combined income of $250,000 are not eligible for this deduction.
• SALT deduction cap: The cap on deducting state and local taxes (SALT) is temporarily raised to $40,000 for tax year 2025—but it’s scheduled to return to lower levels after 2029 unless Congress acts again.
• Car loan interest deduction: Individuals can deduct up to $10,000/year in interest from car loans for U.S.-assembled vehicles purchased between 2025 and 2028. Income limits and other restrictions apply.
• “Trump Accounts”: The new tax-deferred savings accounts for children born between 2025 and 2029 allows families to contribute up to $5,000/year, and the money can be used for education, medical expenses, or first-time home purchases starting at age 18.
• Major federal tax credits and some rebate programs for energy-efficient home improvements are expiring at the end of 2025. This includes the Energy Efficient Home Improvement Credit (25C) and the Residential Clean Energy Credit (25D), which provided significant tax savings for upgrades like solar panels, efficient windows, and heat pumps.

How to Understand the Major Shift

The One Big Beautiful Bill reshapes both personal and business taxes by locking in lower rates, expanding deductions, and introducing new but sometimes temporary credits. At the same time, it trims certain safety net and environmental programs, showing the trade-offs built into the law.

For most individuals and families, this means greater certainty in planning, but also the need to track which benefits are temporary. Tax law is always evolving, and while the OBBB settles some questions, it also raises new ones. It’s normal to feel uncertain about what applies to you. That’s why professional guidance is so valuable.

One, Big, Beautiful Bill provisions –

– and what that means for you as a business owner

Business owners gain several permanent tax advantages. The 20% deduction for QBI is now permanent, offering clarity to owners of pass-through entities. The bill also makes 100% bonus depreciation permanent, allowing companies to fully expense capital investments right away.

Workforce Related Updates

• Tips and Overtime Pay: Starting in 2025, tips and part of overtime income are no longer taxable. What’s important for employees to know is that only the “extra” portion (the half-time premium) is tax free. For example, if an employee normally earns $20/hour and makes “time and a half” ($30/hour) for overtime, only the extra $10 is tax-deductible. For employers, regular payroll tax rules still apply. But employers must report the portion of the employee’s pay that is qualified overtime separately on the W-2 form.
• Section 179D (Energy Efficient Commercial Buildings Tax Deduction): It’s been 20 years since the Energy Policy Act of 2005, which included Section 179D to reduce energy use, was signed into law. Businesses will no longer be able to claim this deduction starting in July of 2026. The OBBB phases out the popular deduction, but projects that begin construction before July 1, 2026 can still qualify, even if they’re completed later. This change affects developers, building owners, and contractors who’ve used 179D to offset costs for installing high-efficiency HVAC, lighting, and building envelope systems.

Business owners should evaluate how these provisions affect entity structure, capital investment plans, and workforce benefits. Not all companies will benefit equally, as outcomes depend on industry, size, and workforce composition.

How to Understand the Major Shift

The One Big Beautiful Bill reshapes both personal and business taxes by locking in lower rates, expanding deductions, and introducing new but sometimes temporary credits. At the same time, it trims certain safety net and environmental programs, showing the trade-offs built into the law.

For most individuals and families, this means greater certainty in planning, but also the need to track which benefits are temporary. Tax law is always evolving, and while the OBBB settles some questions, it also raises new ones. It’s normal to feel uncertain about what applies to you. That’s why professional guidance is so valuable.

What is a Trump Account?

A Trump account is a new, tax-advantaged custodial Individual Retirement Account (IRA) for children under 18, created by the One Big Beautiful Bill Act (OBBBA) and launching in 2026

• No contributions necessary—but you can deposit up to $5,000 per year to maximize growth.
  Your account balance will grow over time on its own, whether you choose to contribute additionally or not. You may contribute up to $5,000 per year to accelerate gains.
• The account is fully in your child’s name, and you are the sole custodian until they turn 18. –
  They’re free to continue letting it grow, or they can withdraw funds right away to use for things like education or a home—with all the tax advantages of a traditional IRA.
• Get $1,000 for every American child born between January 1, 2025 and December 31, 2028. –
  The federal government will make a one-time $1,000 contribution for each eligible child’s account

– Enroll your child at anytime or by making an election when you file your 2025 taxes –

Additional Information:

Overview of Trump Accounts

• Parents, guardians, or others can establish a Trump Account for an eligible child
• Trump Accounts cannot be funded before July 4, 2026
• The federal government will make a one-time $1,000 contribution for each eligible child’s account
• Authorized contributions from individuals and employers are allowed up to $5,000 per year
• Employers can contribute up to $2,500 per year toward an employee’s or dependent’s Trump Account without it counting as taxable income for the employee
• Funds must be invested in certain mutual funds or exchange-traded funds that track a U.S. stock index such as the S&P 500

Withdrawal and use

• Generally, money cannot be withdrawn before the year the child turns 18
• After that point, the account is treated like a traditional IRA with similar tax rules