JC Herren Co LLC

07/08/2026

Big Changes for Gamblers in 2026!

Starting in 2026, under the new BBB Act, gambling loss deductions are limited. You will only be able to deduct 90% of gambling losses, and only up to the amount of your gambling winnings.

That means even if your wins and losses net to zero, you could still owe tax on “phantom income.” Phantom income is income you are taxed on even though you didn’t actually end up with any cash in hand.

Example: If you win $50,000 and lose $50,000:
Under the new rules:
• Loss deduction is limited to winnings: $50,000 maximum
• Then the 90% limitation applies: $45,000 deductible loss
• Taxable income: $5,000
So even though you broke even in reality, you would still have $5,000 of taxable income.

Another example: You win $50,000 and lose $70,000:
• Losses are still capped at winnings: $50,000
• 90% rule limits deduction: $45,000
• Taxable income: $5,000
That means you could pay tax on income you didn’t actually keep.

These changes make it more important than ever to track gambling activity closely, understand how deductions will apply under the new rules, and evaluate how this limitation could affect your overall tax situation.

07/06/2026

2026 Charitable Contribution Rules You Need to Know!

Did you know the rules for charitable contribution deductions are changing in 2026? Here’s a quick breakdown:

Itemizers – You can only deduct charitable contributions that exceed 0.5% of your AGI. Amounts below that floor are not deductible, and any amount disallowed by the floor can be carried forward for up to 5 years.

Example for Itemizers:
Bill and Susan have $300,000 of AGI and enough other deductions to itemize in 2026. They donate $6,000 to charity.
• 0.5% floor = $1,500 (0.5% × $300,000)
• Net deductible amount = $4,500 ($6,000 - $1,500)
• The $1,500 disallowed by the floor carries forward for up to 5 years. When you carry forward an unused charitable contribution to a future tax year, the same AGI-based percentage limitation that applied in the original contribution year continues to apply in the carryover year.

Non-Itemizers – Good news! You may still claim a charitable deduction of up to $1,000 ($2,000 if Married Filing Jointly) for cash or check contributions, even if you take the standard deduction.

Planning Tip: If you plan to make charitable contributions, consider “bunching” multiple years of donations into one tax year to maximize your itemized deduction benefit.

11/18/2025

Big Update for Charitable Giving Starting in Tax Year 2026

Starting January 1, 2026 (for the 2026 tax year), the new tax law (the One Big Beautiful Bill Act) changes how charitable deductions work:

• If you DO NOT itemize, you’ll still get a deduction—up to $1,000 (single) or $2,000 (joint) for cash contributions to a qualifying charitable organization. Noncash contributions and contributions to Donor-Advised Funds do not qualify.
• If you DO itemize: the first 0.5% of your AGI in charitable contributions (cash and noncash) won’t be deductible. Contributions eliminated by the new 0.5% floor carry-forward for 5 years.

Tax planning
If you’re thinking of giving a large gift, consider doing so in 2025 under the current rules so you maximize tax benefit.
Use a donor-advised fund, bunch your donations, and coordinate with any big income year ahead.

09/23/2025

New Auto Loan Interest Deduction for tax years 2025-2028 (four years)

HR1 One Big Beautiful Bill Act (OBBBA) was signed into law July 4, 2025. The new tax bill allows a temporary 4-year deduction for interest paid on auto loans for personal vehicles. This deduction is allowed even for taxpayers who do not itemize.

What the Deduction Is:
• Taxpayers can deduct up to $10,000/year in interest paid on qualifying auto loans.
• The deduction is an above the line deduction, meaning you do not need to itemize deductions to use it. The deduction reduces your taxable income directly.
• Loans must be originated after December 31, 2024.

• Qualified vehicles:
o Must be a new vehicle: cars, SUVs, pickup trucks, vans, or motorcycles. Vehicle must have a gross vehicle weight rating of less than 14,000 pounds, used vehicles are not eligible.
o Must have undergone final assembly in the United States. The Vehicle Identification Number (VIN) must be reported when claiming the deduction.
o The loan must be secured by a first lien on the vehicle. Leases, commercial loans, and loans from related parties often are excluded.
o Personal use only. Vehicles used for commercial, or fleet purposes do not qualify. Leased vehicles typically not eligible, since the lessee isn’t holding the “loan” in the same sense.

Income Phase-Out Applies:
• Full deduction available if your modified adjusted gross income (MAGI) is less than - Single filers: $100,000 (Joint Filers: $200,000)
• If you exceed those amounts, the deduction phases out. The reduction is approximately $200 of deduction lost for each $1,000 (or part thereof) of income over the threshold.
• The deduction is completely phased out once income reaches higher caps: around $150,000 (single) or $250,000 (joint filers).

08/05/2025

Energy Tax Credit Alert!
The HR1 One Big Beautiful Bill Act (OBBBA) repeals key green energy tax incentives. Deadlines:
- 🚗 Clean Vehicle Credits: Ends 9/30/2025
- 🏠 Energy-Efficient Home Improvement Credits (solar, geothermal, insulation, windows, doors, furnaces, and water heaters): Ends 12/31/2025
- 🏢 Energy-Efficient Commercial Building & New Home Credits: Ends 6/30/2026
Taxpayers planning to qualify for upgrades should act before the deadlines to claim the available benefits.

07/30/2025

New $6,000 Senior Tax Deduction for tax year 2025 – 2028 (four years)

HR1 One Big Beautiful Bill Act (OBBBA) was signed into law July 4, 2025. The new tax bill introduces a new benefit for older Americans: a $6,000 Senior Deduction for taxpayers age 65 and older by the end of the tax year. Both spouses can qualify for the senior tax deduction.

What it is:
An additional deduction on top of the standard deduction, designed to provide tax relief for seniors (also available if itemizing deductions on Sch A).

Income Phase-Out Applies:
This deduction begins to phase out for individuals with adjusted gross income (AGI) over $75,000 and phases out completely at $175,000. For married couples filing jointly, the phase-out begins at $150,000 and ends at $250,000.

What’s NOT changing:
There are no changes to how Social Security is taxed under HR1. Current rules remain the same.

02/08/2025

Your team at JCH is ready for your tax returns. Get to the front of the line by dropping off your papers in February. See you soon!

11/04/2024

IMPORTANT – If you have a business entity that was created with the filing of a document with the Secretary of State, you have a NEW FILING REQUIREMENT with the Treasury Department’s Financial Crimes Enforcement Network (FinCEN). Companies required to file this new report include S and C corporations, partnership, and multi-member/single member LLCs. The Beneficial Ownership Information (BOI) report is due 1/1/25 for entities created before 1/1/24.Failure to file by the deadline will result in penalties.

09/22/2024

Tax season will see another eclipse!

Skies were clear for last night's (9-17-24) partial lunar eclipse. While only 8% of the Moon passed into the Earth's shadow, the eclipse was very apparent.

On the early morning of March 14, 2025 we in the U.S. will see a Total Lunar Eclipse. Total means the entire Moon will pass into the Earth's umbral shadow. The partial eclipse will start around 12:10am CDT on Friday March 14th. Totality will begin around 1:27am, with maximum totality occurring at 1:58am and the entire Moon will stay in the umbral shadow until 2:33am. Then the Moon will start exiting the shadow and the partial eclipse ends at 3:50am.

04/09/2024

We took a tiny break from taxes to look at the solar eclipse here in Missouri. Ready for the last push before the 15th. Call us for an extension if you havent sent your papers in yet.