Centum Bookkeeping

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Centum Bookkeeping Bookkeeping and accounting for small businesses.

10/26/2026

Thinking about a life insurance policy for your business? Whether the premiums are deductible comes down to one question: who collects the payout?

If the business is the beneficiary (a key-person policy), the premiums are NOT deductible — the payout it would collect is generally tax-free, so you don't get the write-off too. That's true for sole proprietors, partnerships and corporations.

If the employee's own family is the beneficiary (like group life offered as a staff benefit), the premiums are usually deductible as pay.

One more thing: a company-owned policy on an employee stays fully tax-free only if the company gave written notice and got the employee's written consent before the policy started.

Tag a business owner weighing coverage. Comment "PREMIUMS" for a simple guide. (General info, not tax advice.)

10/23/2026

Rusty bought a $1 million life insurance policy on himself, named the business as beneficiary, and planned to write off every premium. 💼 Here's the rule a lot of owners miss:

If the business collects the payout, that payout is generally tax-free — so the premiums aren't deductible. You don't get the tax break going in AND coming out.

This applies whether you're a sole proprietor, a partnership or a corporation.

Two catches: for a company-owned policy on an employee, the payout stays tax-free only if the company gave written notice and got the employee's written consent before the policy started. And if the employee's own family is the beneficiary (like group life as a staff benefit), the premiums are usually deductible as pay.

Know a business owner carrying a key-person policy? Tag them. Comment "PREMIUMS" for a simple breakdown. (General info, not tax advice.)

10/22/2026

Before tax season, here's how credit card rewards really work for your business — because one part trips owners up every year.

Rewards you earn by spending (cash back, points, statement credits) are treated as a discount on your purchase, not income. So there's no tax on them.

The catch: that discount lowers what you actually paid, so your deduction on those purchases usually drops by the reward amount. Spend $150,000 on supplies and earn $3,000 back, and you deduct about $147,000 — not the full price plus a bonus.

The exception: a sign-up or referral bonus that requires no spending can be taxable, and the bank may send a 1099.

Tag a business owner who loves their points. Comment "REWARDS" for a simple guide. (General info, not tax advice.)

10/21/2026

Rusty earned $3,000 in credit card cash back and was convinced the IRS wanted a cut. 💳 Here's the good news for business owners:

Cash back, points and statement credits you earn by spending are treated as a discount on what you bought — not income. So there's no tax on them.

Two things to keep straight: because the reward lowers what you actually paid, your write-off on those purchases usually drops by the same amount (don't deduct the full price AND pocket the cash back as a bonus). And a sign-up or referral bonus that requires no spending can be taxable — the bank may even send a 1099.

Tag a business owner who racks up points. Comment "REWARDS" for a simple breakdown. (General info, not tax advice.)

10/20/2026

Before your next big business purchase, know this one difference — it decides whether you write it off now or over many years.

A REPAIR keeps your property working (patching a leak, fixing a unit) and is usually deducted the year you pay for it. An IMPROVEMENT betters or replaces something (a whole new roof, a major remodel) and is usually written off a little at a time — for a commercial building, typically about 39 years.

Quick test: are you fixing what's broken, or making it better or new again?

A few safe-harbor rules can let smaller costs come off sooner, so it's worth asking first.

Tag a business owner planning a renovation. Comment "REPAIRS" for a simple guide. (General info, not tax advice.)

10/19/2026

Rusty's roof sprung a leak, so he bought a brand-new $40,000 one and planned to write it all off this year. 🏠 Here's where a lot of owners get tripped up:

A REPAIR fixes what's broken (like patching that leak) and is usually written off the year you pay for it. An IMPROVEMENT — like replacing the whole roof — makes the building better for years, so it's usually written off a little at a time. For a commercial building, that's typically about 39 years.

A few exceptions can speed smaller costs up, so it's worth asking before you assume.

Know a business owner planning a big repair? Tag them. 👇

Comment "REPAIRS" for a simple breakdown. (General info, not tax advice.)

10/15/2026

How to hire your kids the right way: 🧒

✅ Real business tasks (not chores)
✅ A fair wage for the work
✅ Timecards and actual W-2 payroll
✅ Then: the pay is deductible, and they earn up to the standard deduction ($16,100 in 2026) free of federal income tax
✅ At a parent's sole prop, a child under 18 owes no Social Security/Medicare tax
❌ Chores, allowance, or a made-up salary
❌ Corporations don't get the payroll-tax break

Save this. DM "KIDS".

General info, not tax advice — rules vary by business type and state. Talk to a pro.

10/14/2026

Rusty paid his kid $14,000 to clean his bedroom and called it a write-off. 🧹😅

The "hire your kids" strategy is real — but only for real work. If you're a sole proprietor (or a partnership owned only by the parents), your child under 18 can work for the business with no Social Security or Medicare tax, and they owe no federal income tax on wages up to the standard deduction ($16,100 in 2026).

The rules: real business tasks, a fair wage for the work, timecards, and a W-2 through payroll. Chores and allowances don't count. DM "KIDS" for help.

General info, not tax advice — rules vary by business type and state. Talk to a pro.

10/13/2026

Myth: "I'll write off the campaign fundraiser ticket as advertising." 🚩

Reality: political spending is never deductible. Fundraiser tickets, campaign donations and political ads can't go on the business books (IRC §162(e) and §276) — even if you attend for business and meet clients. And they're not charitable deductions either.

Swipe for the full breakdown. DM "POLITICAL" for help.

Educational info, not tax advice.

10/12/2026

Rusty dropped $10,000 on two tickets to a campaign fundraiser dinner and tried to write it off as "advertising." 🎟️😅

Reality: political spending is never deductible. Fundraiser dinner tickets, campaign donations and political ads can't go on the business books (IRC §162(e) and §276) — even if you hand out business cards and land a client there.

And political donations aren't charitable deductions either. It comes out of your own pocket. DM "POLITICAL" for help.

Educational info, not tax advice.

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270 Regency Ridge Drive
Centerville, OH
45459

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