TCM Advisors

05/29/2026

If you operate a sole proprietorship or a partnership where you and your spouse are the only partners, you might want to consider employing your child this summer. In addition to providing valuable work experience and enabling your child to start contributing to a tax-advantaged IRA, you can save payroll taxes. Wages you pay to your children under age 21 are exempt from FUTA tax. If they’re under age 18, their wages are also exempt from F**A tax. In addition, because wages paid to your child are considered a business expense, you can reduce your self-employment income (and, thus, reduce your income tax). Your child will likely be subject to less (if any) income tax.

05/23/2026

6 practical tips to lower business travel expenses

Travel remains a critical expense for many businesses, whether for client meetings, networking, industry conferences or sales opportunities. However, travel and entertainment (T&E) costs can qu…

05/22/2026

Travel remains a critical expense for many businesses, whether for client meetings, networking, industry conferences or sales opportunities. However, travel and entertainment (T&E) costs can quickly spiral out of control, cutting into profits. Consider taking these six proactive measures to keep T&E costs in check.
1. Set clear travel policies
A formal, written T&E policy is essential. Without clear guidelines, employees may unknowingly overspend on flights, train travel, hotels and meals. Establish limits for various categories of reimbursable expenses. For instance, employees should be required to book economy flights and stay in mid-range hotels instead of luxury accommodations.
In addition to cost limits, specify strict documentation requirements to ensure compliance with financial reporting and tax regulations. Employees should submit receipts for major expenses, along with detailed reports explaining the business purpose of each trip. Digital expense tracking software can streamline this process and help prevent errors, omissions and even fraud. Expense report misstatements — whether intentional or accidental — are a common issue that can inflate costs.
2. Encourage cost-saving practices
Last-minute bookings often result in higher costs. Whenever possible, employees should book their travel arrangements well in advance to lock in lower rates. Additionally, they should:
Use corporate travel platforms that offer negotiated discounts,
Leverage rewards programs for airlines, hotels and rental cars to accumulate savings over time, and
Consider long-term alternative lodging, such as extended-stay hotels, Airbnbs or corporate housing.
Also, remind employees that in-person meetings, while valuable, aren’t always necessary. Video conferencing platforms, such as Zoom, Microsoft Teams and Google Meet, allow businesses to conduct meetings at a fraction of the cost. When travel is necessary, employees should maximize efficiency by scheduling multiple meetings within the same trip.
3. Optimize daily expenses
Beyond flights and lodging, ground transportation is another area where you can potentially save. Instead of renting cars for every trip, employees should consider ridesharing services, public transportation or carpooling with colleagues attending the same event. Many urban destinations offer affordable subway or bus options that can be significantly cheaper than rental cars and taxis.
Meal and entertainment expenses should also be carefully monitored. Establish per diem meal allowances to prevent excessive spending and encourage employees to choose reasonably priced dining options. Additionally, while entertaining clients is sometimes necessary, extravagant expenses should be limited to occasions where they provide a clear business benefit.
4. Identify preferred vendors and issue corporate cards
If your business has a large T&E budget, you may be able to negotiate corporate rates with certain airlines, train services, hotels and rental car providers. Many vendors offer volume discounts for loyal business customers. Communicate preferred vendors to employees and request that they take advantage of discounts whenever feasible.
Additionally, requiring employees to use corporate credit cards (instead of personal ones) for T&E expenses offers multiple benefits, including expense tracking and fraud protection. Plus, the company can earn cashback or reward points for future travel needs.
5. Monitor spending and enforce accountability
Requiring timely expense reporting and reviewing reports regularly helps businesses identify cost-saving opportunities and address inefficiencies. Analyze monthly spending patterns to determine if employees are complying with company policies and whether adjustments are needed. Expense-tracking software can help spot irregularities and ensure all costs are justified.
Accountability should be enforced at all levels of the organization. Managers should set an example by following T&E policies and approving only necessary expenses. Employees who understand that cost control is a priority are more likely to make responsible spending decisions.
6. Seek professional guidance
Every dollar saved on T&E is a dollar that can be reinvested in growing your business. So make cost-conscious behaviors a priority. Contact us to learn how to be more strategic about when and how money is spent on business travel. We can conduct a T&E policy and expense review to ensure you’re optimizing your travel expenditures.
© 2025

05/21/2026

Section 179 Update OBBBA

If you own a business, the Sec. 179 expensing election allows you to deduct the cost of purchasing eligible assets rather than depreciating them over multiple years. An annual expensing limit appli…

05/20/2026

If you own a business, the Sec. 179 expensing election allows you to deduct the cost of purchasing eligible assets rather than depreciating them over multiple years. An annual expensing limit applies, which begins to phase out dollar-for-dollar when acquisitions for the year exceed the phaseout threshold. For qualifying property placed in service in 2025, the One Big Beautiful Bill Act (OBBBA) doubles the expensing limit to $2.5 million. The 2025 phaseout threshold is $4 million, up from $3.13 million before the OBBBA. In 2026, after inflation adjustments, the expensing limit increases to $2.56 million and the break begins to phase out when acquisitions for the year exceed $4.09 million.

05/19/2026

Life events, such as buying a home, losing a job, getting married or welcoming a new child, can qualify you for certain tax breaks you might not have been eligible to claim in the past. For example, if you have a new baby, make sure you review eligibility for the Child Tax Credit and Child and Dependent Care Credit. The IRS provides several links to help taxpayers determine which credits (to reduce the amount of tax due) and deductions (to reduce taxable income) may apply in their situation: https://bit.ly/4p1Uz25. Or contact us for help identifying potential tax breaks and building a strategy that minimizes your tax burden.

05/12/2026

Most Women business owners would like to offer their employees a 401(k) retirement savings plan with all the bells and whistles. But for small businesses with lean budgets and small staffs, offering such benefits may be out of the question. Fortunately, SEP IRAs and SIMPLE IRAs are less expensive and easier to administer. Might one of these tax-advantaged options work for your workforce?
SEP: Flexible and zero setup fees
Simplified Employee Pension (SEP) IRAs are individual retirement accounts you establish on behalf of each participant. (Self-employed individuals can also establish SEP IRAs.) Participants own their accounts, so they’re immediately 100% vested. If participants decide to leave your company, their account balances go with them. Most people roll their accounts over into a new employer’s qualified plan or traditional IRA account.
SEP IRAs don’t require annual employer contributions. That means you can choose to contribute only when cash flow allows. In addition, there are typically no setup fees for SEP IRAs. But participants generally must pay trading commissions and fund expense ratios (a fee typically set as a percentage of the fund’s average net assets).
In 2026, the SEP IRA annual contribution limit is 25% of a participant’s compensation, up to $72,000. That amount is higher than the standard 401(k) account contribution limit of $24,500 (in 2026). What’s more, employer contributions are tax-deductible. Meanwhile, participants won’t pay taxes on their SEP IRA funds until they’re withdrawn.
However, there are a few downsides to consider. Although participants own their accounts, only employers can make SEP IRA contributions. And if you contribute sparsely or sporadically, participants may see little value in the accounts. Also, unlike many other qualified plans, SEP IRAs don’t permit participants age 50 or over to make additional “catch-up” contributions.
SIMPLE: Easy and participant-friendly
Another possibility is to offer a Savings Incentive Match Plan for Employees (SIMPLE) IRA. As with a SEP IRA, your business creates a SIMPLE IRA for each participant, who’s immediately 100% vested in the account. Unlike SEP IRAs, SIMPLE IRAs allow participants to contribute to their accounts if they choose.
Other advantages of SIMPLE IRAs include:
They’re relatively easy for employers to set up and administer.
They don’t require your business to file IRS Form 5500, “Annual Return/Report of Employee Benefit Plan.”
You don’t need to submit the plan to nondiscrimination testing.
Participants pay no setup fees and enjoy tax-deferred growth on their account funds.
Participants can contribute up to $17,000 annually in 2026.
Participants age 50 or over can make catch-up contributions of up to $4,000 in 2026 ($5,250 for those ages 60 to 63).
Participants can contribute more to a SIMPLE IRA than to a self-owned traditional or Roth IRA. But SIMPLE IRA contribution limits are lower than limits for 401(k)s. Also, because contributions are made with pretax dollars, participants can’t deduct them. They also can’t take out plan loans. Then again, making pretax contributions does lower their taxable income. Perhaps most important is that employer contributions to SIMPLE IRAs are mandatory, regardless of your cash-flow situation. However, in general, you can deduct contributions as a business expense.
SIMPLE Roth IRAs are available, too. Ask your financial and employee benefits advisors whether this might be a better option for your business.
Lower-cost options
If you’ve thought you can’t afford to offer workers a retirement plan, think again. In addition to SEP and SIMPLE IRAs, there are now some lower-cost 401(k) options available as well. We can review your budget, tax situation and benefit needs and suggest how best to proceed. Contact us.
© 2026

05/03/2026

Charitable Tax Planning Under New Limitations - Forvis Mazars US: Charitable Tax Planning Under New Limitations Forvis Mazars US

05/01/2026

Hedge funds: Tax structuring, planning, and compliance - The Tax Adviser: Hedge funds: Tax structuring, planning, and compliance The Tax Adviser

04/29/2026

Immigration Insights Episode 24 | U.S. Tax Planning Essentials for High-Net-Worth Foreign Nationals [Podcast] - The National Law Review: Immigration Insights Episode 24 | U.S. Tax Planning Essentials for High-Net-Worth Foreign Nationals [Podcast] The National Law Review