Palmetto Accounting

Palmetto Accounting A Charleston-based accounting firm specializing in small & mid-size business consulting.

Marriage is a massive milestone. But it’s also a major tax event.If you got married recently, your financial landscape j...
07/20/2026

Marriage is a massive milestone. But it’s also a major tax event.

If you got married recently, your financial landscape just shifted, and the IRS determines your filing options for the entire year based on your marital status on December 31.

Waiting until next spring to deal with the paperwork is what causes administrative processing delays and surprise tax bills.

If you just tied the knot, there are two immediate administrative steps you need to take right now:

• Report name changes first: If either of you changed your last name, notify the Social Security Administration before you ever try to file. If the name on your return doesn’t match their database, the IRS will reject or delay your return.
• File Form 8822 if you moved: If the wedding involved a move to a new home, don't just rely on the post office to forward your mail. Officially update your address with the IRS using Form 8822 so you don't miss important tax notices.

Getting married changes the rules of the game.

Take care of the paperwork today so next tax season stays simple.

📩 [email protected]

We are officially halfway through the year.For most business owners, January feels like a lifetime ago. But those goals ...
07/17/2026

We are officially halfway through the year.

For most business owners, January feels like a lifetime ago. But those goals you set at the start of the year? Now is the exact moment to measure them.

If you aren’t looking at your year-to-date numbers right now, you are flying blind into Q3 and Q4.

A mid-year financial review isn't just about looking backward. It’s about checking two critical things:

• Are you ahead of last year? (Is your growth actual, or just inflation?)
• Are you within budget for this year? (Did expense creep quietly eat your margins?)

Waiting until October or November to check your pacing means it's too late to fix a bad trend.

Checking right now gives you six full months to pivot, adjust spending, and hit your targets.

Let’s run the numbers and see exactly where you stand.

📩 [email protected]

Most growing businesses don’t need a $200k+ full-time CFO.But they do need financial strategy.There’s a huge gap between...
07/16/2026

Most growing businesses don’t need a $200k+ full-time CFO.

But they do need financial strategy.

There’s a huge gap between entering transactions and mapping out the future of your company.

If you are trying to decide:
• When you can afford to make your next key hire
• How much cash to keep in reserve for safety
• If your profit margins can sustain your growth

You don’t need a full-time executive salary on your payroll. You need senior financial guidance on a part-time basis.

That is exactly what a Fractional CFO does.

You get the strategic foresight to scale confidently, without the full-time overhead.

Stop guessing your next move. Let's build a plan.📩

[email protected]

When you buy equipment for your business, like a new laptop, office furniture, or software, do you write it all off inst...
07/03/2026

When you buy equipment for your business, like a new laptop, office furniture, or software, do you write it all off instantly, or do you have to depreciate it over several years?

Technically, major equipment purchases are considered "assets" and are supposed to be capitalized and depreciated over time. But tracking depreciation on every single office chair or minor tech upgrade is an administrative nightmare for small businesses.

Ask your accountant about the De Minimis Safe Harbor Election. This beautiful IRS rule allows small businesses to automatically expense any physical item costing $2,500 or less per invoice (or per item) in the year you buy it, bypassing depreciation entirely. It slashes your paperwork and gives you an immediate tax deduction!

Hiring help is an exciting milestone for any growing business, but getting the classification wrong can cost you thousan...
07/01/2026

Hiring help is an exciting milestone for any growing business, but getting the classification wrong can cost you thousands in back taxes, insurance premiums, and IRS penalties.

You don't get to simply choose whether someone is an Independent Contractor (1099) or an Employee (W-2) based on what is cheaper or easier for you. The IRS looks at the level of control you have over their work.

If you dictate exactly when they work, how they do the job, and provide all their tools, the IRS legally considers them an employee.

If you hire a 1099 contractor, protect your business by having a signed contract, ensuring they invoice you regularly, and confirming they offer their services to other businesses. Never put a 1099 contractor on a fixed weekly schedule or provide them with a company email address and laptop without evaluating the risk first.

Can you deduct a dinner just because you talked about a business goal for two minutes over dessert? Not quite. The IRS i...
06/29/2026

Can you deduct a dinner just because you talked about a business goal for two minutes over dessert? Not quite.

The IRS is incredibly strict about business meals. To write off a meal, you must be dining with a client, prospect, or business associate, and you must have a substantial, active business discussion during the meal. The environment can't be too distracting (no loud concerts!), and the meal cannot be "lavish or extravagant."

The receipt alone isn't enough for an audit. Get into the habit of opening your calendar or expense app right at the table and noting who you ate with and what business topic was discussed. Keeping this log contemporaneous (at the time of the event) keeps you 100% audit-proof.

Want a legitimate way to shift income out of your higher tax bracket while funding your child’s future? Hire them!If you...
06/26/2026

Want a legitimate way to shift income out of your higher tax bracket while funding your child’s future? Hire them!

If you own an LLC or a sole proprietorship, you can hire your children to do legitimate work for your business. You can pay them up to the standard deduction amount entirely tax-free, and your business gets to deduct their wages as a business expense.

The catch: They must do actual work (like cleaning the office, modeling for your social media, or data entry), and you must pay them a reasonable, market-rate wage for their age and task.
Don’t just hand them cash. Open a business bank account, pay them via a clean payroll transfer, file a W-2 at the end of the year, and put those tax-free dollars directly into a Roth IRA for them. It’s an incredible way to jumpstart their retirement or college fund! 📈

The Home Office Deduction is one of the most misunderstood write-offs in the tax code. A lot of business owners skip it ...
06/24/2026

The Home Office Deduction is one of the most misunderstood write-offs in the tax code. A lot of business owners skip it because they think it’s an automatic audit trigger, while others claim their living room sofa because they answered an email there once.

To claim the deduction, your home workspace must pass two strict IRS tests: Exclusive Use and Regular Use.

This means your workspace must be a specific area of your home used only for business. If your desk is also the family dinner table or your kid's homework station, it doesn't qualify.

If you meet the rules, don’t leave money on the table! Use the Simplified Method to easily claim $5 per square foot of your office space (up to 300 sq ft) for a hassle-free $1,500 deduction. If your actual expenses (rent, utilities, internet) are much higher, track your exact square footage percentage to maximize your savings.

When your business starts growing, you'll likely hear that it's time to switch your LLC to an S Corp for tax purposes. B...
06/22/2026

When your business starts growing, you'll likely hear that it's time to switch your LLC to an S Corp for tax purposes. But when is the actual right time to pull the trigger?

Operating an S Corp comes with extra expenses, like running payroll, filing a separate corporate tax return (Form 1120S), and maintaining strict corporate records. If your business isn't making enough profit yet, those administrative costs will completely wipe out your tax savings.

We typically tell business owners to start looking at the S Corp election once their net business profit consistently crosses the $60,000 to $80,000 threshold. Below that, a standard LLC is usually more cost-effective.

If you’re a >2% S Corp shareholder, you can deduct 100% of your health insurance premiums. Sounds great, right? But here...
06/19/2026

If you’re a >2% S Corp shareholder, you can deduct 100% of your health insurance premiums. Sounds great, right? But here is the catch: if you don’t report it correctly on your payroll, you lose the deduction entirely.

Unlike standard employees, an S Corp owner's health insurance premiums must flow through the business and be reported explicitly on your year-end W-2.

If this is you ensure your business either pays the premiums directly or formally reimburses you. Then, verify that the total premium amount is included in Box 1 of your W-2 (Gross Wages), but excluded from Boxes 3 and 5 (Social Security and Medicare). Only then can you claim the 100% above-the-line deduction on your personal tax return!

Address

Mount Pleasant, SC

Opening Hours

Monday 8am - 5pm
Tuesday 8am - 5pm
Wednesday 8am - 5pm
Thursday 8am - 5pm
Friday 8am - 5pm

Telephone

(843) 608-1008

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