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Patterson Tax & Accounting CPA

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United States
Colorado Springs, CO
Patterson Tax & Accounting CPA

Certified Public Accountant offering tax & accounting services for
businesses and individuals.

Certified Public Accountant * income tax * payroll * small business accounting

09/03/2026

Growing a business takes vision, strategy, and the right capital behind you!

Whether you're navigating a temporary cash flow slump, eyeing expansion, or upgrading essential equipment, how you fund those moves matters just as much as the move itself.

Here is a quick cheat sheet on the top financing paths for small business owners:

1️⃣ Lines of Credit:
Best for ongoing flexibility. Think of it as a safety net for cash flow gaps that you can draw from as needed without reapplying every time.

2️⃣ Term Loans & Commercial Mortgages:
Best for major, long-term investments like upgrading vehicles, machinery, or buying real estate.

3️⃣ SBA Loans:
Great if traditional underwriting feels out of reach! Government-backed programs like SBA 7(a) or 504 loans offer incredible lending opportunities for qualifying businesses.

4️⃣ Equipment Leases:
A smart move if you want to preserve upfront cash and keep tech or machinery updated without getting locked into ownership as assets age.

5️⃣ Alternative Financing:
Factoring (advancing cash against outstanding invoices) or online working capital loans can help fill immediate short-term gaps when traditional banks take too long.

Don’t overlook the tax impact! Interest paid on business loans, lines of credit, and commercial mortgages is often tax-deductible (subject to specific IRS limits). Plus, qualifying equipment lease payments can frequently be written off as direct business expenses.

Choosing the right funding strategy isn't just about getting cash in the bank today—it's about protecting your bottom line at tax time tomorrow.

If you are considering taking out a loan or leasing new equipment this year, give us a call! We’ll help you analyze the numbers, evaluate the tax implications, and choose the smartest path for your goals.

09/01/2026

Saving for your child’s future just got a new set of rules!
Created under recent tax legislation, Section 530A accounts (commonly referred to as "Trump Accounts") are officially available as of July 2026. They’re designed to give families, relatives, and even employers a tax-advantaged path to build long-term assets for children under 18.

Here’s a quick breakdown of how they work:

💰 Any child under age 18 with a Social Security number qualifies.

💰 Up to $5,000 annually per child from family/individuals can be contributed.

💰 Employers can contribute up to $2,500/year per employee tax-free (which counts toward the $5k total limit).

💰 Contributions aren’t tax-deductible, but account earnings grow tax-deferred. At age 18, the account transitions into a Traditional IRA.

💰 U.S. citizen children born between Jan 1, 2025, and Dec 31, 2028, may qualify for a $1,000 government-funded starter deposit!

If your primary goal is funding college, a 529 Plan often remains the better vehicle because withdrawals for qualified education expenses are completely tax-free. However, if your child qualifies for the $1,000 government deposit in a Section 530A account, opening one—even if you never add another dollar—allows that initial deposit to compound tax-deferred for years.

Every family’s wealth strategy looks a little different. Whether you're balancing trust & estate planning or setting up savings strategies for the next generation, we’re here to help you make sense of the latest tax code changes!

08/27/2026

One of the most common questions I get from clients is: "I have some extra cash—should I throw it at my mortgage and pay it off early?"

Emotionally, the answer feels like a no-brainer.
Being completely debt-free brings massive peace of mind.

But financially, the answer isn’t always black and white.
It really comes down to opportunity cost.

Mortgage interest rates are typically moderate, and that interest is often tax-deductible. If you take your extra cash and put it toward a 4% mortgage, you are essentially getting a guaranteed 4% return on that money.

But if you were to put that same cash into a tax-deferred retirement plan or another investment yielding 7% or 8%, your money is actually working much harder for you there.

You also have to look at high-interest debt first.
Paying off a credit card balance or a high-rate personal loan will always be a better use of your cash than accelerating a low-interest mortgage.

On the other hand- if you know that keeping the cash liquid means you’ll just spend it on lifestyle expenses, then putting it toward your principal is an excellent move.

If you do decide to pay it down, always check with your lender first to ensure there are no prepayment penalties, and explicitly tell them to apply the extra funds to the principal, not future payments.

Deciding where to route your cash depends entirely on your interest rates, tax brackets, and retirement timeline.

If you want to run the numbers on your specific situation to see what makes the most sense for your wealth strategy, give us a call.

📲719-437-7464

08/25/2026

Most people view their annual tax appointment as a box to check.

You bring the papers, we file the return, and we see each other next year.

But if that's all you're using your accountant for, you are leaving massive value on the table.

Think of your appointment as a strategic financial planning session.

The magic doesn’t happen in just recording the past—it happens when we use that data to build your future.

To completely change the game this year, try doing these three things before you walk through our door or jump on our call:

1️⃣ Don't just dump raw paperwork on the desk.
Grouping your physical or digital documents by category (income, investments, expenses) gives us more time to focus on strategy and less time sorting pages.

2️⃣ Map out your life changes before you arrive.
Did you start a side hustle, get married, buy a house, or welcome a new child? Even tiny shifts alter your tax brackets, credits, and filing paths. Jot down a quick list of what changed so we can spot hidden deductions instantly.

3️⃣ Show up with questions.
Ask us how to protect your revenue for next year, whether you should adjust your current W-4 withholdings, or how to better track your expenses moving forward.

When you arrive organized and forward-thinking, we are able to better build a bulletproof strategy to lower your future liabilities.

Let's make this year's meeting count. Give us a call to lock in your appointment time!

📲719-437-7464

08/20/2026

The IRS just gave partnerships a massive compliance break, permanently retiring an accelerated deadline that has been a giant thorn in the side of business owners and tax professionals since 2020.

Now, when a partner sells their interest in a business, calculating the split between ordinary income and capital gains requires diving into some highly complex asset math.

Previously, the IRS forced partnerships to rush those detailed calculations and hand them over to the selling partner by January 31.

However, it’s practically impossible to calculate those numbers accurately before the business even closes its books for the year.

Recognizing the administrative bottleneck, new final regulations officially eliminate that January 31 crunch.

Moving forward, partnerships can now provide this detailed gain and loss data right alongside the partner’s standard, end-of-year Schedule K-1.

It’s a major win for accurate reporting and a breath of fresh air for year-end accounting workloads.

If your partnership experienced an ownership shift or a sale this past year, let’s make sure your year-end reporting is aligned with these new rules without the stress.

Give us a call to map out your compliance strategy together.

📲719-437-7464

08/18/2026

Helping an elderly parent or family member transition into a nursing home or long-term care facility is emotionally heavy, and the financial side of it can feel equally overwhelming.

But there is a major silver lining in the tax code that many families completely miss: a significant portion of those long-term care costs might actually be tax-deductible.

If your relative is staying in a facility primarily for medical care—or if they are considered chronically ill—those monthly payments qualify as deductible medical expenses.

Even better, if you pay for their care and claim them as a dependent on your tax return, you can often bunch their medical bills together with your own to maximize your write-offs.

The rule here is that your total qualifying medical expenses have to exceed 7.5% of your Adjusted Gross Income (AGI) before they start lowering your tax bill, but with the high cost of elder care, families frequently clear that hurdle faster than they realize.

Navigating the exact IRS definitions of "medical vs. custodial care" can get incredibly nuanced, especially when balancing it with your own personal tax strategy.

If your family is navigating these changes right now and you want to make sure you're taking full advantage of the deductions available to you, please give us a call.

📲719-437-7464

We're here to help you navigate this smoothly.

08/13/2026

When you hire an independent contractor, you normally write the check, hand over the 1099 at the end of the year, and go about your day. No tax withholding required.

But there’s a massive exception to that rule- backup withholding.

If a contractor hands you an incorrect Social Security Number, gives you a mismatched EIN, or flat-out refuses to fill out a Form W-9, the IRS shifts the burden directly to you.

Suddenly, you are legally required to withhold a flat 24% from their payments and send it straight to the government.

If you miss this trigger and pay them the full amount anyway, your business could find itself on the hook for that 24% out of your own pocket.

The easiest way to protect yourself?
Never send a single dollar to a new contractor until you have a signed, completed W-9 securely on file.

If you have independent contractors working for you right now and want to make sure your onboarding process is completely bulletproof, give us a call.

📲719-437-7464

Let’s make sure you aren't exposed to unnecessary penalties.

08/11/2026

The old financial rule of thumb says you need three to six months of living expenses sitting in a basic savings account just in case life throws you a curveball.

But if you have stable employment, multiple income streams, or significant business assets, keeping that much raw cash just sitting around might actually be working against you.

The goal isn't just to accumulate the biggest mountain of cash possible.

The better option is maintaining enough liquidity to sleep well at night while keeping the rest of your money actively working for your long-term wealth goals.

If you do need to beef up your reserves because your household expenses or business costs have scaled up recently, look beyond standard savings accounts that pay pennies in interest.

High-yield savings accounts, money market options, or short-term Treasury securities can give you a much better return while keeping your money completely safe and accessible.

Just keep one critical thing in mind: the IRS treats that interest income as taxable, which can quietly chip away at your real returns over time.

If you haven’t looked at your emergency reserve strategy lately—or you aren't sure if your cash is positioned in the most tax-efficient way— it's time to take a look.

Give us a call & we'll take a look at your overall financial picture together.

📲719-437-7464

08/06/2026

There is a massive tax loophole for vacation homes that almost sounds too good to be true, but it’s 100% real. It’s called the 14-day rule.

If you rent out your vacation home or second property for 14 days or fewer out of the whole year, the IRS lets you keep every single penny of that rental income completely tax-free.

You don’t even have to report it on your tax return.

But the moment you hit day 15, all that income becomes taxable.

The silver lining is that you can now start writing off a portion of your operating expenses—like utilities, maintenance, and depreciation.

Be sure to precisely track and allocate your days.

If your personal vacation days outnumber your rental days by a certain threshold, the IRS locks you out from claiming any net losses on the property.

Real estate tax strategy is never a one-size-fits-all, and tracking these timelines can get messy fast.

If you're renting out a property this year and want to make sure you're structured the right way, let's get a strategy session on the books.

Give us a call to get started.

📲719-437-7464

08/04/2026

Attracting and keeping great talent is a priority for every small business owner, and offering retirement benefits is a huge way to stand out. But I hear from clients all the time who hesitate because they dread the thought of complex administration and massive setup costs.

Fortunately, you don't have to jump straight into a traditional 401(k) to take care of your team (and yourself!).

A Simplified Employee Pension (SEP) plan is one of the easiest ways to get started.

It's loved by small businesses for its low maintenance, tax perks, and flexibility!

There's no dense annual reports to file with the IRS & your plan’s trustee handles the bulk of the recordkeeping.

As the employer, you get a current income tax deduction for the contributions you make. Plus, for 2026, the maximum deductible contribution limit is up to $72,000 per employee.

You can even look into a Roth SEP option, allowing employees to have contributions made on an after-tax basis so their future withdrawals are tax-free.

If a SEP isn't the perfect fit, options like a SIMPLE IRA or a SIMPLE 401(k) also cut out the complex compliance rules of standard plans while letting your team contribute directly from their paychecks.

Choosing the right retirement track entirely depends on your current cash flow, team size, and long-term goals.

If you want to look at the numbers and see which plan actually makes sense for your business this year, give us a call. We’re here to help you figure it out!

📲719-437-7464

Address

2920 N Academy Boulevard, Suite 100
Colorado Springs, CO
80917

Opening Hours

Monday	9am - 6pm
Tuesday	9am - 6pm
Wednesday	9am - 6pm
Thursday	9am - 6pm
Friday	9am - 5pm
Saturday	9am - 3pm

Telephone

(719) 459-1462

Website

http://pattersontaxcpa.com/

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