Tax and Business Solutions LLC

08/30/2026

Big Purchase This Year? There's a Deduction You Might Be Missing

Did you buy a car, a boat, or put money into remodeling your home this year? That purchase could mean an extra deduction on your tax return, one that's easy to overlook.
If you itemize deductions, you can add the sales tax you paid on big purchases like these on top of your regular sales tax deduction. A vehicle or a home remodel can easily add a few thousand dollars to that number.

This is especially worth paying attention to right now. The limit on how much you can deduct for property tax combined with income or sales tax used to be capped at just $10,000. That cap has been raised to just over $40,000 ($40,400 for 2026), so there's a lot more room for this deduction to actually make a difference than there used to be.

Here's why it matters: even if itemizing hasn't been worth it for you in past years, a big purchase like this could change that. The extra sales tax from one large purchase might be just enough to make itemizing pay off this year.

Don't overlook it - a significant purchase can mean a bigger deduction!

08/24/2026

2026 Tax Update: What's Changed for Business Meals

Starting January 1, 2026, a new IRS rule affects how certain business meals are deducted:

❌ No longer deductible: Actual meals provided on business premises for the employer's convenience, for example, dinner brought in for a crew working late to finish a project, or food provided to a team pulling long hours to meet a client deadline.

✅ Still 50% deductible:
Client meals (business purpose required, restaurant or otherwise)
Meeting food (business/planning meetings)
Travel meals (overnight business travel)
Office snacks, coffee, and beverages (chips, donuts, coffee, water) - these are treated differently than "meals" under IRS rules

✅ Still 100% deductible: Company-wide parties/picnics, meals included in an employee's W-2 wages, food sold to customers, and meals provided as public advertising.

⚠️ Contractors ≠ employees. Food or meals provided to independent contractors don't qualify for employee-related exceptions and generally aren't deductible.

📝 Documentation matters. For every meal deduction, keep: amount, date/place, business purpose, and who attended. Receipts are required for expenses over $75.

Questions about how this affects your business? Reach out - we're here to help.

08/16/2026

Think Your Home Is Too Small for a Home Office Deduction? Think Again.

Many business owners skip this deduction because they assume their home office needs to be a full room. Not true.

✅ Your home office can be any clearly defined space used exclusively for business, even just a few square feet.
✅ The real benefit isn't just the expense deduction, it can make your home your principal place of business.
✅ That converts drives between your home office and other work locations from non-deductible commuting into deductible business mileage.

To qualify, the space must be used exclusively and regularly for:
☑️ Bookkeeping
☑️ Billing customers
☑️ Scheduling appointments
☑️ Ordering supplies
☑️ Preparing reports

⚠️ You also can't have another fixed location where you do substantial administrative work.

Who qualifies in 2026: Self-employed individuals, partners, and S-corp owners (with a proper accountable plan reimbursement).
Who doesn't: W-2 employees, this deduction remains unavailable to them under current law.

A small dedicated space could mean real tax savings. Not sure if your setup qualifies? Let's talk.

08/08/2026

Lending Yourself Money From Your Own Business? The IRS Has Rules for That.

When does it make sense?

C-corp owners: get cash now without triggering a taxable dividend or a payroll-tax-heavy bonus.
S-corp owners: same idea, plus it avoids a distribution that exceeds your basis (which would be taxed as capital gain).
Partners/multi-member LLCs: pull cash without shrinking your capital account or forcing a distribution to every other partner.
Sole proprietors: a "loan" from yourself to yourself isn't a real tax concept - you and the business are one taxpayer, so this strategy doesn't apply to you.

But even when a loan makes sense, the IRS still requires:

✅ A real loan: written promissory note, fixed repayment schedule, maturity date.
✅ Interest at least at the IRS Applicable Federal Rate (AFR) — for August 2026: 4.10% (short-term), 4.35% (mid-term), or 4.92% (long-term).
✅ Payments actually made — on paper and in practice.

Skip these steps, and the IRS can impute interest income, hit you with a constructive dividend, or add payroll tax on top.

08/03/2026

Charitable giving rules changed for 2026!

✅ Don't itemize? You can now deduct up to $1,000 ($2,000 married) in cash donations, no itemizing needed.

⚠️ Do itemize? A new rule means the first 0.5% of your AGI in donations isn't deductible, only the amount above that.
Example: AGI of $100,000 + $5,000 donated = first $500 isn't deductible, but you can still deduct the remaining $4,500.

💵 Remember: cash gifts to public charities are still capped at 60% of your AGI (this limit is now permanent).

📝 Donating property instead of cash? Keep receipts and records of fair market value, if the donation is worth more than $500, you'll need to file Form 8283 with your return.

💰 High-income filers (37% bracket): the tax benefit of your itemized deductions, including charitable gifts, is now capped at 35%.

🚨 Also, watch for fake charities. Scammers ramp up after disasters. Before donating:
✔️ Check the org is IRS-qualified: IRS Tax Exempt Search https://www.irs.gov/charities-non-profits/search-for-tax-exempt-organizations
✔️ Keep your receipts
✔️ Donations to individuals are never tax-deductible
✔️ Be wary of inflated appraisals on donated property (art, real estate, etc.), the IRS watches closely for this

Questions about how this affects your 2026 tax planning? Contact us, we're happy to walk through the numbers with you.

07/26/2026

06/14/2026

Trump Accounts vs. Other Kids’ Investment Accounts: Who May Benefit?

Trump Accounts are a new tax-advantaged investment account for children. They may be useful for some families, but they are not necessarily the best or most important option for everyone.
Here is a simple way to think about it.

1. Children born in 2025–2028
This group may receive the biggest direct benefit: a possible one-time $1,000 contribution from the U.S. Treasury, if the child meets the IRS requirements.
For these children, it may be worth reviewing the option even if the family is not planning to invest large amounts right away.

2. Children under 18 who were not born in 2025–2028
These children may still be able to have a Trump Account, but they generally do not receive the $1,000 government contribution.
For this group, the main possible benefit is tax-deferred long-term investing. Interest, dividends, and possible capital gains inside the Trump Account are generally not taxed each year while the money remains in the account. Instead, taxes are generally deferred until distributions are allowed, starting in the calendar year the child turns 18.
This may be more useful if the family plans to contribute regularly or invest larger amounts over time. For smaller balances, the tax deferral may be less significant, and a regular custodial brokerage account may be simpler and more flexible.

3. Children with earned income
If a child has earned income from a job or business activity, a Roth IRA may also be an option.
A Roth IRA can be very tax-efficient and may offer more flexibility than a Trump Account. Contributions to a Roth IRA can generally be withdrawn at any time without tax or penalty, because those contributions were already made with after-tax dollars. Earnings have separate rules.
A Trump Account may still be considered separately, but it should be compared with the Roth IRA and other family goals.

4. Families investing smaller amounts
If the family is only planning to invest a small amount, the tax benefit of a Trump Account may be limited.
A regular custodial brokerage account may be simpler and more flexible. Dividends, interest, and capital gain distributions may be taxable, but with a small account balance, the tax impact may not be significant.

5. Families investing larger amounts over time
If the family plans to invest consistently or contribute larger amounts, the Trump Account may become more attractive because investment growth is tax-deferred inside the account.
However, the trade-off is flexibility. Trump Accounts are designed for long-term growth, and access to the money is restricted.

This is not a one-size-fits-all decision. The best option depends on the child’s age, whether the child has earned income, how much the family plans to invest, and whether flexibility or long-term tax treatment is more important.