What does it mean to write something off? For business owners, “writing something off” means deducting an expense from your taxable income. This lowers the amount of income you are taxed on, ultimately reducing your tax liability. To be deductible, an expense must be ordinary (common in your industry) and necessary (helpful for running your
Author Archives: Whittaker
05
Feb
Feb
For high-income earners, tax planning is essential to minimize liabilities, protect wealth, and maximize after-tax income. With potential tax law changes on the horizon and the scheduled expiration of the 2017 Tax Cuts and Jobs Act (TCJA) at the end of 2025, now is the time to take proactive steps to optimize your tax strategy.
29
Jan
Jan
Common IRS Audit Triggers and How to Avoid Them An IRS audit is something no taxpayer wants to experience. While the chances of being audited are relatively low, certain red flags can increase your likelihood of receiving that dreaded IRS notice. Whether you are a small business owner, a high-income earner, or a self-employed individual,
22
Jan
Jan
With every new tax year, adjustments to tax laws and regulations can impact individuals, small business owners, and corporations. As we move into 2025, it’s essential to understand the latest tax changes and how they may affect your tax planning strategy. From updated income tax brackets to potential adjustments in deductions and credits, here’s what
15
Jan
Jan
Understanding Medical Expense Deductions from a Tax Perspective Medical expense deductions can help lower your taxable income if you have significant healthcare costs. However, not all medical expenses qualify, and certain thresholds must be met. Here’s what you need to know when considering medical expense deductions for tax purposes. 1. The 7.5% AGI Threshold For
08
Jan
Jan
When Will I Get My Tax Refund? How to Check Your Status Waiting for a tax refund can be frustrating, especially when you are counting on those funds. The good news is that both the IRS (for federal tax returns) and the California Franchise Tax Board (FTB) (for state tax returns) offer online tools to
18
Dec
Dec
For years, many businesses kept lease obligations off their balance sheets, particularly operating leases for office space, equipment, and vehicles. But with the introduction of ASC 842, those days are over. Originally impacting public companies in 2019, private businesses are now required to comply with the new lease standard. While some private business owners may
11
Dec
Dec
California Pass-Through Entity (PTE) Tax: A Key Strategy for Business Owners California’s Pass-Through Entity (PTE) Tax provides an opportunity for business owners to reduce federal taxable income while navigating the state and local tax (SALT) deduction cap. Designed for S corporations, partnerships, and LLCs taxed as partnerships, this tax strategy can lead to significant tax
04
Dec
Dec
The Internal Revenue Service (IRS) has released the inflation-adjusted federal income tax brackets for the 2025 tax year, applicable to income earned in 2025 and filed in 2026. While tax rates remain unchanged, the income thresholds have been adjusted to account for approximately a 2.8% inflation rate. 2025 Federal Income Tax Brackets Here are the
27
Nov
Nov
Standard vs. Itemized Deductions: Which One Saves You More on Taxes? When filing your individual tax return, one of the biggest decisions you’ll face is whether to take the standard deduction or itemize your deductions. The choice you make can significantly impact your taxable income, the amount you owe, and the size of your refund.