ADH Financial Services LLC

01/26/2026

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📣 TAX SEASON HAS OFFICIALLY STARTED — THE IRS IS NOW ACCEPTING RETURNS! 📣

Now is the time to get your taxes filed accurately, securely, and on time. ADH Financial Services LLC is here to guide you through the process with expert support and a smooth, stress-free experience from beginning to end.

Our secure online client portal allows you to upload documents, communicate with your tax professional, and track your return progress with ease — all in one place. 🖥️🔐

💡 What You Can Expect:
✅ Professional tax preparation by an Enrolled Agent
✅ Secure electronic filing
✅ Easy document upload through our online portal
✅ A simple and organized filing experience

📍 Office Location:
18495 Mack Avenue Suite 1
Detroit, MI 48236

📅 Book Your Appointment:
Visit www.adhfinancial.com and click Client Portal to schedule your appointment and upload your documents

📞 Call:313-427-3667

Appointments are limited and filling fast. Schedule today and let ADH Financial Services help you file with confidence and peace of mind. 💵📊

03/08/2025

A great read!

These are the most common mistakes that can lead to an IRS audit, according to a tax lawyer. Here's how to avoid them.

03/08/2025

💼 Understanding Organizational Costs for Your Business: What Can You Deduct? 💼

Starting a business involves various costs, but did you know that some of these expenses are tax-deductible? One of the key deductible expenses for new businesses is organizational costs. Here’s what you need to know:

📌 What Are Organizational Costs?

Organizational costs are the expenses you incur to form your business entity before it officially begins operations. These costs typically include:
• Legal fees for drafting and filing your articles of incorporation or partnership agreements.
• Accounting services necessary for organizing the business.
• State filing fees for registering your business structure.
• Temporary directors’ fees for meetings held to organize the corporation.

Note: Marketing, advertising, and research expenses are not considered organizational costs; they fall under startup costs.

📌 How Much Can You Deduct?

The IRS allows you to deduct up to $5,000 in organizational costs if your total organizational expenses are $50,000 or less. However:
• If your organizational costs exceed $50,000, the $5,000 deduction is reduced dollar-for-dollar by the amount over $50,000.
• Costs beyond the $5,000 limit must be amortized over 15 years (180 months).

📌 Example:

If you spent $52,000 on organizational costs:
• Your immediate deduction would be reduced to $3,000 ($5,000 - $2,000).
• The remaining $49,000 would need to be amortized over 15 years.

Understanding these deductions can help you save significantly on your taxes. Need help navigating these expenses? ADH Financial Services LLC is here to guide you!

📞 Call us at: 313-427-3667
📧 Email: [email protected]
🌐 Visit: www.adhfinancial.com

Contact us today!

03/07/2025

Simple IRA vs. Solo 401(k) vs. SEP IRA: Pros and Cons

When choosing a retirement plan for your small business or self-employment income, it’s essential to understand the differences between a SIMPLE IRA, Solo 401(k), and SEP IRA. Here’s a breakdown of the pros and cons of each to help you make an informed decision:

1. SIMPLE IRA (Savings Incentive Match Plan for Employees IRA)

✅ Pros:
1. Ease of Setup: Simple to establish and maintain with minimal paperwork.
2. Employer Contributions: Mandatory employer contributions (either matching up to 3% or a 2% non-elective contribution).
3. Cost-Effective: Lower administrative costs compared to 401(k) plans.
4. Employee Participation: Allows employees to contribute.

❌ Cons:
1. Lower Contribution Limits: Maximum employee deferral of $15,500 for 2025 (+$3,500 catch-up for 50+).
2. Mandatory Employer Contributions: Not optional, which can be a financial strain.
3. Limited Investment Options: Often limited by the provider’s choices.
4. No Roth Option: Contributions are pre-tax only.

2. Solo 401(k) (Individual 401(k))

✅ Pros:
1. High Contribution Limits: Combines employee deferrals ($23,000 for 2025, +$7,500 catch-up for 50+) and employer contributions (up to 25% of compensation) with a total limit of $66,000 (or $73,500 with catch-up).
2. Roth Option Available: Can offer a Roth component for tax-free growth and withdrawals.
3. Loans Allowed: Borrow up to 50% of the balance, up to $50,000.
4. No Mandatory Contributions: Flexibility for employer contributions.

❌ Cons:
1. Limited to Owner and Spouse: Cannot cover other employees.
2. Administrative Requirements: More paperwork and annual IRS Form 5500 required if assets exceed $250,000.
3. Complex Setup: More complex and potentially costly to establish.

3. SEP IRA (Simplified Employee Pension IRA)

✅ Pros:
1. High Contribution Limits: Up to 25% of compensation or $66,000 for 2025, whichever is less.
2. Simplicity: Easy to set up and administer.
3. Flexibility: Employer contributions are discretionary each year.
4. Ideal for Solopreneurs: Beneficial for businesses with no employees or only the owner.

❌ Cons:
1. Employer-Funded Only: Employees cannot contribute—only the employer.
2. No Roth Option: Contributions are pre-tax only.
3. Equal Percentage Contributions: Must contribute the same percentage for all eligible employees.
4. No Loan Provision: Cannot borrow from a SEP IRA.

Summary: Which One is Right for You?
• Choose a SIMPLE IRA if you want a straightforward plan for a small business with employees and don’t mind mandatory contributions.
• Go with a Solo 401(k) if you’re self-employed or own a business without employees and want high contribution limits and Roth options.
• Pick a SEP IRA if you want high contribution limits, simple administration, and are okay with employer-only contributions.

Need help deciding? Let’s talk through your options based on your income, business structure, and retirement goals!

Book an appointment at ADH Financial Services LLC

03/06/2025

💼 Understanding IRS Rules for Startup Costs 💼

Did you know that the IRS has specific rules for deducting startup costs? If you’re in the early stages of starting a business, understanding these guidelines can help you save money come tax time!

Here’s a quick rundown:

1️⃣ What Qualifies as Startup Costs?
The IRS considers expenses you incur before officially opening your business as startup costs. This includes things like market research, advertising, travel to meet suppliers, and professional fees for consultants or attorneys.

2️⃣ How Much Can You Deduct?
You can deduct up to $5,000 in startup costs and another $5,000 in organizational costs in your first year if your total expenses are $50,000 or less. Costs above this amount must be amortized over 15 years.

3️⃣ Keep Detailed Records!
To maximize your deductions, keep thorough records of all expenses. Accurate documentation makes tax filing smoother and protects you in case of an audit.

If you need help navigating startup deductions or have tax questions, let’s chat! Book an appointment by visiting www.adhfinancial.com

03/05/2025

🚨🚨🚨 Long Post Alert

Friday we had a client call me saying Nelnet wanted them to pay 1,000 per month. Normally we would would do an Income contingent repayment option but President Trump has removed that application. Our client Is currently unemployed so I was able to secure a forbearance. If your loans are coming do here are some helpful tips!

📢 Detailed Guide from ADH Financial Services LLC: How to Qualify for Student Loan Deferment and Forbearance 📢

Managing student loans can be overwhelming, but understanding your options for deferment and forbearance can provide much-needed relief. Below is a comprehensive guide on qualifications for both.

📌 1. Deferment Qualifications

Deferment allows you to temporarily pause your student loan payments, often without accruing interest for subsidized loans.

A. In-School Deferment

Eligibility:
• Must be enrolled at least half-time in an eligible school.
• Available for Direct, FFEL, and Perkins loans.

How to Apply:
• Your school typically notifies your loan servicer, or you can submit an In-School Deferment Request form.

B. Graduate Fellowship Deferment

Eligibility:
• Must be enrolled in an approved graduate fellowship program (e.g., Fulbright Program).

How to Apply:
• Submit a Graduate Fellowship Deferment Request with program certification.

C. Unemployment Deferment

Eligibility:
• Available if unemployed or working less than 30 hours per week while actively seeking full-time employment.
• Limit: Up to 36 months.

Required Documents:
• Proof of unemployment benefits or job search efforts.
• Unemployment Deferment Request form.

D. Economic Hardship Deferment

Eligibility:
• Receiving state or federal public assistance (e.g., SNAP, TANF).
• Serving in the Peace Corps.
• Earning less than 150% of the federal poverty guideline for your family size and state.
• Limit: Up to 36 months.

Required Documents:
• Income proof (pay stubs, tax returns).
• Economic Hardship Deferment Request form.

E. Military Service Deferment

Eligibility:
• Active duty during war, military operation, or national emergency.
• Applies to Direct, FFEL, and Perkins loans.

Required Documents:
• Military orders or a commanding officer’s statement.
• Military Service Deferment Request form.

F. Cancer Treatment Deferment

Eligibility:
• Receiving treatment for cancer or recovering post-treatment.
• No interest accrual for Direct Subsidized Loans during deferment.

Required Documents:
• Medical certification.
• Cancer Treatment Deferment Request form.

📌 2. Forbearance Qualifications

Forbearance temporarily reduces or suspends your student loan payments but may result in interest accrual for all loan types. There are two types: General (Discretionary) and Mandatory Forbearance.

A. General (Discretionary) Forbearance

Eligibility:
• Financial hardship (e.g., medical expenses, loss of income).
• Employment challenges.

Limit:
• Granted at the loan servicer’s discretion, up to 12 months at a time (cumulative maximum of 36 months).

Required Documents:
• Income proof and a General Forbearance Request form.

B. Mandatory Forbearance

Your loan servicer must grant forbearance if you meet any of these conditions:

1. Medical or Dental Internship/Residency

Eligibility:
• Must have Direct or FFEL loans.
• Must be in a qualifying medical or dental internship/residency program.

2. AmeriCorps Service

Eligibility:
• Serving in an AmeriCorps position for which you’ve received a national service award.

3. National Guard Duty

Eligibility:
• Activated by a governor but not eligible for military deferment.

4. Student Loan Debt Burden

Eligibility:
• Monthly federal student loan payments exceed 20% of your total monthly income.

5. Teacher Loan Forgiveness Program

Eligibility:
• Working toward eligibility for Teacher Loan Forgiveness.

Limit for Mandatory Forbearance:
• Up to 12 months at a time, with the possibility to reapply.

Required Documents:
• Specific to the category, plus a Mandatory Forbearance Request form.

🛑 Important Considerations for Both Options
1. Interest Accrual:
• Deferment: Interest does not accrue on subsidized loans.
• Forbearance: Interest accrues on all loan types.
2. Impact on Loan Forgiveness:
• Payments paused do not count toward Public Service Loan Forgiveness (PSLF) or income-driven repayment forgiveness.
3. Automatic Deferment:
• Some deferments (like in-school or military) may be applied automatically, but it’s best to confirm with your loan servicer.

📞 Need Help Navigating the Process?

Contact ADH Financial Services LLC today for personalized guidance!
• 📧 Email: [email protected]
• 📞 Phone:313-427-3667

We’re here to help you manage your student loans with confidence!

03/04/2025

Important Deadlines for March 2025

Federal (IRS) Deadlines:

🟦 March 3, 2025: Farmers and fishermen who did not pay all estimated tax payments by January 15, 2025, must file their 2024 income tax return (Form 1040) and pay any tax due to avoid penalties.

🟦 March 17, 2025:

S Corporations: File 2024 income tax return (Form 1120-S) or request a six-month extension.
Partnerships and Multi-Member LLCs: File 2024 income tax return (Form 1065) or request a six-month extension.
S Corporation Election: File Form 2553 to elect S Corporation status effective for the 2025 calendar year.

State of Michigan Deadlines:

🟦 March 17, 2025:

Annual returns for businesses operating on a calendar year are due on the last day of the fourth month after the tax year ends, which is April 30, 2025. However, for S Corporations and Partnerships aligning with federal deadlines, the due date is March 17, 2025. avoid penalties.

City of Detroit Deadlines:

🟦 March 17, 2025:

City of Detroit individual income tax returns are due, aligning with the federal and state deadline of April 15, 2025.

Michigan Unemployment Tax Deadlines:

🟦 Employers are required to file quarterly wage detail reports and pay unemployment taxes by the 25th day of the month following the end of each quarter. For the first quarter of 2025, this would be April 25, 2025.

Please note that tax deadlines can vary based on specific circumstances, and it's advisable to consult with ADH Financial Services LLC or refer to official tax authorities for personalized guidance.

Federal (IRS) Payroll Tax Deadlines:

🟦 Semi-Weekly Deposit Schedule: If you're a semi-weekly depositor (employers who reported more than $50,000 in payroll taxes during the lookback period from July 1, 2023, to June 30, 2024), your deposit schedule is as follows:

For paydays on Wednesday, Thursday, or Friday: Deposits are due by the following Wednesday.
For paydays on Saturday, Sunday, Monday, or Tuesday: Deposits are due by the following Friday.
For example, if you have a payday on Friday, March 7, 2025, the deposit is due by Wednesday, March 12, 2025. If you have a payday on Monday, March 10, 2025, the deposit is due by Friday, March 14, 2025.
irs.gov
Monthly Deposit Schedule: If you're a monthly depositor (employers who reported $50,000 or less in payroll taxes during the lookback period), payroll tax deposits for February 2025 are due by March 17, 2025.

State of Michigan Payroll Tax Deadlines:

🟦 Withholding Tax: Michigan requires employers to remit withholding taxes either monthly or quarterly, depending on the amount withheld:

Monthly Filers: For taxes withheld in February 2025, the payment is due by March 20, 2025.
Quarterly Filers: For the first quarter of 2025 (January through March), the payment is due by April 20, 2025.
Unemployment Insurance Tax: Employers must file quarterly wage detail reports and pay unemployment taxes by the 25th day of the month following the end of each quarter. For the first quarter of 2025, the due date is April 25, 2025.

*Special Deadline*

Notice of Intention to Claim Interest in Foreclosure Sale Proceeds from Sales Occurring Prior to December 22, 2020

If your property in Michigan was foreclosed and sold before December 22, 2020, you may be eligible to claim any surplus proceeds from the sale. To do so, you must submit Form 6156, the "Notice of Intention to Claim Interest in Foreclosure Sale Proceeds From Sales Occurring Prior to December 22, 2020," by March 31, 2025.

Steps to Submit Your Claim:

Complete Form 6156: This form is available on the Michigan Department of Treasury's website.
michigan.gov
Notarize the Form: Ensure the completed form is notarized.
Submit the Form: Deliver the notarized form to the appropriate Foreclosing Governmental Unit (FGU) either by certified mail with return receipt requested or in person. Typically, the FGU is the county treasurer where the property is located. For properties in Branch, Clinton, Iosco, Livingston, Luce, or Mecosta counties, the FGU is the State Treasurer.

After receiving your notice, the FGU will inform you by July 1, 2025, if there are surplus proceeds available. If funds are available, you'll need to file a motion with the circuit court by October 1, 2025, to claim the proceeds.

For detailed instructions and access to Form 6156, visit the Michigan Department of Treasury's website. michigan.gov

Please note that this process is time-sensitive, and it's advisable to act promptly to ensure your claim is considered.

03/03/2025

🚨IMPORTANT INFO FOR BUSINESS OWNER🚨

Sole Prop or LLC (Taxed as S-Corp)?

Choosing between a sole proprietorship and an LLC taxed as an S-corp impacts your bottom line dramatically; an S-corp allows you to pay less in self-employment taxes by splitting your income. But, be aware that S-corp elections require adherence to specific rules and are generally most beneficial when your business reaches a certain profit threshold.

1. Sole Proprietorship:
- Income: $150,000
- Self-Employment Tax: 15.3% of $150,000 = $22,950.
(Remember, half of this is deductible on your income tax return).
- Federal Income Tax: This will vary based on your personal tax bracket. You'll add your $150,000 business profit to your other income, then subtract the half of the self employment tax as a deduction. For this example, let's estimate this to be $25,000.

- Estimated Total Federal Tax Burden: $22,950 + $25,000 = $47,950.

2. S-Corp (Single-Member LLC Taxed as S-Corp):
- Income: $150,000
- Reasonable Salary: Let's say $60,000.
F**A Taxes (on Salary): 7.65% of $60,000 = $4,590.
- Federal Income Tax (on Salary): (Variable) Roughly $11,247.50.
- Distributions (Bonus): $150,000 - $60,000 = $90,000.
- Federal Income Tax (on Distributions): (Variable) Roughly $15,747.50.
Estimated Total Federal Tax Burden: $4,590 + $11,247.50 + $15,747.50 = $31,585.

The Difference:
The primary difference is the self-employment tax. In a sole proprietorship, you pay this on your entire net profit. In an S-corp, you only pay it on your "reasonable salary."

Estimated Tax Savings: $47,950 - $31,585 = $16,365.

Key Takeaways:
- An S-corp can significantly reduce your tax burden compared to a sole proprietorship, especially as your income increases.
- The "reasonable salary" is critical. It must be defensible to the IRS.
- Sole proprietorships are simpler to manage, but can have a larger tax liability.

Disclaimer:
These are simplified examples and tax calculations. Actual tax liabilities can vary based on individual circumstances, deductions, and changes in tax laws. Tax laws are complex and subject to change.

Need help trying to decide if your business should be a S Corp. Book an appointment with us today.

ADH Finanacial Services LLC is here to service all your business needs!

03/03/2025

🚨Breaking News 🚨

The Treasury Department is announcing today that, with respect to the Corporate Transparency Act, not only will it not enforce any penalties or fines associated with the beneficial ownership information reporting rule under the existing regulatory deadlines, but it will further not enforce any penalties or fines against U.S. citizens or domestic reporting companies or their beneficial owners after the forthcoming rule changes take effect either.

https://home.treasury.gov/news/press-releases/sb0038?fbclid=IwZXh0bgNhZW0CMTEAAR3ElbM9ohJxTgY5aXU3xengaEPsl1OOoXs_jZ7jxGaA46pT3_aJH6j4CpM_aem_xkOybt-diwlO_fRai9X7XA

The Treasury Department is announcing today that, with respect to the Corporate Transparency Act, not only will it not enforce any penalties or fines associated with the beneficial ownership information reporting rule under the existing regulatory deadlines, but it will further not enforce any penal...