Kimbal Tax & Accounting Services, PLLC

11/18/2025

Tax Tip of the Day: Changes Coming for Charitable Deductions in 2026

I attended a conference where I learned about changes to federal tax laws. Spoke to two of my clients after business hours today and they decided to take action on this strategy.

A 2025 federal tax law changes how charitable donations are deducted starting in 2026.

Here’s what’s changing for individuals who itemize:
1️⃣ New 0.5% “floor” on giving start 1/1/2026
Beginning with 2026 returns, your charitable contributions are only deductible to the extent they exceed 0.5% of your income (technically, your “contribution base,” which is essentially AGI).

If your income is $500,000, the first $2,500 of charitable giving each year will not be deductible.
Gifts above that still follow the usual AGI limits (60%, 30%, etc.).

2️⃣ If you’re in the 37% bracket, your deduction is slightly less valuable
For taxpayers in the top federal bracket (37%), the law also caps the tax benefit of itemized deductions starting in 2026. Nerding out...these provisions replace the prior "Pease limitation" which was set to return in 2026 under the original Tax Cuts and Jobs Act

Under prior law, each $1 of itemized deduction could save you up to 37¢ in federal tax.
Under the new rules, that benefit is capped at 35¢ per $1 of deduction once you’re in the top bracket.

In plain English: high-income donors can still itemize, but the value of their deductions is trimmed a bit.

3️⃣ Why I'm encouraging select clients to “front-load” giving into 2025

Charitable contributions made before Jan. 1, 2026 that are limited and carried forward into future years are not subject to the new 0.5% floor when you use those carryforwards.

So if you’re planning larger gifts over the next several years and you already itemize, one strategy is to “bunch” multiple years of gifts into 2025. Any excess you can’t use in 2025 may carry forward under the old rules without the new floor, even though you’ll claim it in later years under the new system.

10/24/2025

If you're using one bank account for both business and personal...stop.

That shortcut will cost you:
- Thousands in accounting fees
- Lost deductions
- IRS penalties
- And even your legal protections from the LLC formation

Do this going forward:
+ Personal expenses = personal accounts
+ Business expenses = business accounts
+ No money in your personal account? Then pay your self a wage from the business or plan a distribution from the business out to your personal account.
+ Use an accountable plan for home office and cell phone

06/17/2025

As we reach the midpoint of the year, it’s a great time to review your tax strategy and look for ways to reduce your tax liability while supporting the causes you care about. One highly effective strategy I'm highlighting involves timing and optimizing charitable giving to make the most of your deductions.

Smart Giving Strategy: "Bunch, Invest, and Donate Gains"
Here’s how it works:

Bunch Your Charitable Donations

Instead of spreading donations evenly every year, consider bunching multiple years' worth of charitable contributions into a single tax year.

This may allow you to exceed the standard deduction and itemize your deductions every other year, maximizing your tax benefit.

Invest During Off Years

In the years you don't donate, keep the funds invested in a taxable brokerage account. Let those assets grow — ideally capturing long-term capital gains.

Donate Appreciated Stock Instead of Cash

When you're ready to donate again, consider gifting the appreciated stock directly to a qualified charity.

You’ll avoid paying capital gains tax on the appreciation, and still receive a charitable deduction for the full fair market value of the stock.

This strategy is a great way to maximize your deductions, reduce future capital gains tax, and support charitable causes more efficiently.

If you're interested in learning how to apply this to your specific situation — including what types of investments qualify or how to time your donations — I’d be happy to help.

Let’s work together to make your tax plan as smart as your giving.

06/07/2025

I've Budgeted Every Penny Since 2012 For My Family... But This Changed Everything

For over a decade, I’ve budgeted every dollar my family has spent. But two years ago, we made one small shift that had a massive impact: we started tracking our net worth every single month.

Here’s what happened:

➡️ We became more intentional with spending.
➡️ We could actually see our progress—and our setbacks.
➡️ Budget process became exciting rather than a numbers game every month.

Budgeting is the foundation—but tracking your net worth is the blueprint for building long-term wealth.

As a tax professional, I help my clients do more than file returns. I help them understand where they stand—and how to build from there.

Want to start tracking your net worth? I can show you how.

05/19/2025

ROTH IRA withdrawals? You bet, I can help!

🔥 Want to become Jasmine's client? US and International Tax Planning & Returns, Accounting, and IRS Tax Resolution: https://jasminedilucci.com/become-a-clie...

04/12/2025

When Does Electing S-Corp Status Make Sense? 💡

One of the most common questions small business owners ask is: “When should I switch to an S-Corp?”

Here’s my simple rule of thumb:

👉 Start by asking: What would it cost to replace you?
That’s your owner’s replacement cost — the salary it would take to hire someone else to do what you do in your business.

If your net profit consistently exceeds: ✅ Your replacement cost plus
✅ At least $20,000 more in profit

… then it may be time to consider the S-Corp election.

Why? Because only then will the tax savings from reducing self-employment taxes likely outweigh the added costs of:

S-Corp tax prep fees 💼

Payroll setup & filings 💸

Bookkeeping 📊

State LLC renewals 📝

If you're close to that threshold or unsure how to calculate your replacement cost, that’s where a CPA can help you make an informed decision. Even then the above might not make sense once you factor in Qualified Business Income deduction changes. It's not a cut and dry decision but a CPA is a good start to explore this important decision.

04/03/2025

https://youtube.com/shorts/QrlDOXxq52o?si=PtC1XKnaE-rbXSfw

🔥 Want to become Jasmine's client? US and International Tax Planning & Returns, Accounting, and IRS Tax Resolution: https://jasminedilucci.com/become-a-clie...

03/17/2025

https://youtube.com/shorts/th6LXuBHdVI?si=n5yukZDo50X0sIPK

💯 agree! Do your best and don’t worry about the end result too much along the way. Plan a bit but don’t let the fear associated with risk hold you back.

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03/06/2025

Crazy story -
This last week I had a new client reach out requesting assistance with their tax return. They had already prepared everything in TurboTax and were ready to finalize. They owed taxes for federal and state (about $1,800 total). This seemed reasonable to them given their understanding of taxes this year.

They asked if I could help. I asked what tax forms they had to report. It was very basic stuff (from my position) W2s and a few itemized deductions (mortgage interest and tithing donations). I told them it's unlikely I'll get a different result IF they entered everything into TurboTax accurately.

We ultimately decided they wanted to take the risk of filing with me and paying my $275 tax prep fee even if I got the same results they currently had in TurboTax because they just were not positive, they did everything right.

Once I finished their return, they ended up getting a $1,200 refund. That is a swing of $3,600!

If you aren't sure about doing your taxes on your own, is it really worth the uncertainty that you think you captured everything correctly?

Trusting a CPA to file your return tends to net you more benefits than filing on your own.

***CPAs can never promise refund. But I've found people who are not trained in tax law tend to make many mistakes that over the long run harm you financially!

03/03/2025

The level of support from the communities in Utah, Arizona, and Georgia have been tremendous! This time last year my firm had filed 30 total returns. This year we've already filed 142! What a joy to see the growth!

We strive to provide excellent and reliable tax advisory services. I'm thankful for the support and the amount of referral work I've received this year!

03/01/2025

Get to know me a bit! I'd love to help you with your personal finances and all your taxation needs!

02/09/2025

At this point of the year I’ve prepared 40+ client returns. Some people owe some people are getting refunds. Remember a tax refund while a nice surprise is still your money. Adjusting your W4 elections with your employer is important to ensure they align with the deductions and credits you will claim on your tax return.

A Tax Refund Is NOT Free Money! (Here's Why)Order my brand-new book, "Know Yourself, Know Your Money"! https://bit.ly/2LIclKSStart Budgeting for free with Ev...