McPhee Accounting Services

09/02/2026

Health insurance in the U.S. can be confusing — especially when subsidies and taxes get involved.

An ACA Marketplace subsidy can significantly reduce your monthly premium, but the amount you receive is based on your estimated annual household income.

And that matters at tax time.

For 2026, the enhanced ACA subsidies have expired, and the standard income eligibility rules have returned. Depending on your household income, family size, location, and access to employer-sponsored coverage, you may qualify for a Premium Tax Credit (PTC).

Lower-income households may also qualify for Cost-Sharing Reductions (CSR), which can reduce deductibles, copays, coinsurance, and out-of-pocket costs when enrolled in an eligible Silver Marketplace plan.

⚠️ One important tax consideration:
Your advance subsidy is reconciled when you file your federal tax return using Form 1095-A and Form 8962. If your actual income ends up higher than what you estimated, you may have to repay some—or potentially all—of the excess subsidy.

That’s why choosing health insurance isn’t only about finding the lowest monthly premium.

Your income, tax household, insurance coverage, and taxes are all connected.

Have questions about how your Marketplace subsidy may affect your taxes?
McPhee Accounting

08/31/2026

⭐ A decade of trust speaks for itself.
We’re grateful for clients who continue to trust McPhee Accounting with both their personal and business taxes year after year.
For us, tax preparation isn’t just about filing forms. It’s about understanding the numbers, identifying opportunities, and helping clients make smarter financial decisions.
Thank you, James, for the incredible review and for trusting us for 10 years!
Looking for experienced help with your taxes or business accounting?
Schedule a consultation: mcpheeaccounting.com

08/30/2026

Can You Earn Tax-Free Investment Income in the U.S.? 💰
Yes — in certain situations.
Most investment income is taxable, but the U.S. tax code provides several legitimate ways to earn income or investment gains with little or no federal income tax.
1️⃣ Roth IRA
Investments inside a Roth IRA can grow without annual federal tax on the earnings. If IRS requirements are met, qualified withdrawals — including earnings — are tax-free.
2️⃣ Municipal Bonds
Interest from many bonds issued by states and local governments is exempt from federal income tax. Depending on the bond and where you live, state tax treatment may also be favorable.
3️⃣ 0% Long-Term Capital Gains Rate
Here’s the surprising one: your federal tax rate on certain long-term capital gains can actually be 0% if your taxable income falls within the applicable IRS limits.
But remember: tax-free doesn’t mean rule-free.
Income limits, holding periods, account rules, and the type of investment all matter. Smart tax planning isn’t only about reducing taxes today — it’s also about choosing where and how your money grows.

08/29/2026

08/27/2026

How to Choose the Right Business Structure in the U.S. 🇺🇸
Choosing a business structure isn’t just paperwork. It can affect your taxes, personal liability, bookkeeping, payroll, and how you take money out of the business. Here’s a simple breakdown:
1️⃣ Sole Proprietorship
The simplest option for a one-owner business.
✅ Easy to start
✅ Income is generally reported on Schedule C
❌ No legal separation between you and the business
❌ Net earnings may be subject to self-employment tax
Often used by freelancers and very small businesses.
2️⃣ LLC
An LLC is created under state law and generally provides liability protection for its owners. But here’s what many business owners miss:
👉 LLC does not automatically mean a separate federal tax system.
A single-member LLC is generally taxed like a sole proprietorship by default. A multi-member LLC is generally taxed as a partnership unless another tax classification is elected.
3️⃣ S Corporation
An S Corp is generally a tax election, not simply another version of an LLC. An eligible LLC can elect S Corporation taxation. Why consider it? As profits grow, an S Corp may help reduce self-employment taxes because an owner working in the business can receive a reasonable salary through payroll, while additional profits may be distributed separately.
But it also means:
❌ Payroll requirements
❌ Separate tax return
❌ More bookkeeping and compliance
❌ Additional administrative costs
An S Corp is not automatically a tax-saving strategy for every business.
4️⃣ Partnership
Common when two or more people own a business. The partnership generally files Form 1065, while profits and losses pass through to the partners. A written partnership or operating agreement is extremely important.
5️⃣ C Corporation
A C Corp is a separate tax-paying entity. It may make sense for businesses planning to raise significant outside investment, issue stock, or pursue substantial growth. But profits can potentially be taxed at both the corporate level and again when distributed as dividends.
💡 Don’t choose an LLC or S Corp just because someone on social media said it “saves taxes.”The right structure depends on how your business actually operates and makes money.

08/26/2026

🏠 Should You Put Your House Under an LLC?

You’ve probably heard: “Put your house in an LLC to protect your assets.”

But in Florida, it’s not that simple.

1️⃣ Primary home vs. rental property

An LLC can make sense for a rental or investment property because it may help separate property-related liabilities from your personal assets when properly structured.

But your Florida primary residence may already qualify for powerful Homestead protections. Transferring it to an LLC can put some of those benefits at risk.

2️⃣ Homestead matters

Florida law provides important Homestead protections and property-tax benefits for qualifying homeowners.

An LLC is a separate legal entity, so transferring your primary residence into one should NOT be done without checking how it affects your Homestead status.

3️⃣ An LLC ≠ automatic tax savings

A single-member LLC is generally a disregarded entity for federal income-tax purposes unless another tax treatment is elected.

For many rental owners, income and expenses still flow to the individual tax return.

The LLC itself does not magically create new deductions.

4️⃣ Have a mortgage? Check first.

Transferring a mortgaged property to an LLC may conflict with your loan terms or potentially raise a due-on-sale issue.

Some mortgage programs allow certain LLC transfers, but the rules vary. Check with your lender/servicer BEFORE changing the deed.

5️⃣ The transfer may have a tax cost

Florida can impose documentary stamp tax when real estate is transferred. An existing mortgage or other consideration may affect the amount due.

So when might an LLC make sense?

✅ Rental property
✅ Investment property
✅ Property with meaningful liability exposure

When should you be cautious?

⚠️ Your primary residence
⚠️ Property with Homestead Exemption
⚠️ Property with an existing mortgage
⚠️ Doing it only for supposed “tax savings”

Bottom line: An LLC can be a valuable tool for real estate investors, but putting your Florida home into an LLC is NOT automatically a smart tax or asset-protection strategy.

Always consider Homestead + mortgage + liability + taxes + transfer costs before changing ownership.

Educational purposes only. Not legal or tax advice.

08/24/2026

🧹 Bookkeeping for Cleaning Businesses

A busy schedule doesn’t always mean a profitable cleaning business.

If you want to know what you’re actually making, your bookkeeping should clearly track:

• Income by service — residential, commercial, deep cleaning, move-outs, Airbnb, etc.

• Supplies & equipment — don’t mix everyday cleaning products with larger equipment purchases.

• Labor costs — wages are only part of the cost. Payroll taxes, workers’ comp, and other expenses matter too.

• Employees vs. contractors — proper classification and payment records are essential.

• Mileage & vehicle expenses — especially when your team travels between multiple clients.

• Profit by job — a $300 cleaning job isn’t $300 in profit after labor, supplies, travel, and overhead.

• Monthly reconciliation — catch duplicates, missing transactions, and errors before they become bigger problems.

Good bookkeeping tells you more than how much money is in the bank.

It tells you which clients make money, whether your prices are high enough, and where your profit is going.

08/22/2026

Messy books don’t just create problems at tax time — they can cost your business money all year long.

Without ongoing bookkeeping, businesses risk overpaying estimated taxes, missing valuable deductions, losing track of expenses and margins, delaying collections, and even struggling to qualify for financing.

Good bookkeeping isn’t just about keeping records organized. It gives you a clear picture of where your business stands — so you can make better decisions before small issues become expensive problems.

📊 Keep your books current. Protect your cash flow. Know your numbers.

08/22/2026

Great accounting is about more than filing taxes — it’s about understanding your numbers and using them to make smarter decisions.

We’re grateful for the trust our clients place in McPhee Accounting Services and proud to help local businesses plan ahead, identify opportunities to save, and build a stronger financial future.

⭐️⭐️⭐️⭐️⭐️ Thank you, Ashleigh, for the wonderful review!