Fraker CPA LLC

01/28/2026

The One Big Beautiful Bill created a new account, called a Trump account, that provides a new investment option for children. A Trump account is a special IRA-type savings account set up for a child under 18 that allows money to grow tax-deferred until it is taken out.

Annual contributions are limited to $5,000 per year for each beneficiary before reaching age 18. By law, the funds in the account must be invested in low-risk, low-cost, index funds. Withdrawals are generally not allowed until age 18.

Once the beneficiary turns 18, the account will generally follow rules similar to other IRAs selecting investments and taking withdrawals.

Under a temporary pilot program, the government will make a one-time contribution of $1,000 to the accounts of eligible children born between January 1, 2025 and December 31, 2028. The $1,000 government contribution does not count toward the $5,000 annual limit.

A Trump account can provide an effective way to accumulate savings for your child's future, combining annual family contributions and the potential one-time government contribution, with the benefits of long-term tax deferral on earnings.

You may elect to open Trump accounts for your qualifying children with the filing of your 2025 return. You may also be able to open an account online later this year. The account will be held with the United States Treasury. However, brokerage firms are also working on being custodians of these accounts.

At this time, contributions to Trump accounts are required to be reported on a gift tax return. This requirement may change with future legislation.

Contributions cannot be made to the accounts until July 4, 2026.

This summary is informational and may change due to future tax law changes and guidance from the IRS and/or other authorities. For more information, please visit https://www.trumpaccounts.gov/.

01/06/2026

11/18/2025

As 2025 draws to a close it is important to consider year-end tax planning. Tax law changes driven by The One Big Beautiful Bill will have impacts to tax year 2025 and beyond.

Considerations may include, but not limited to:
• Tax bracket management
• Roth conversions
• New deductions
• Itemized deduction optimization
• Gifting
• Accelerated depreciation
• Entity optimization

Careful planning before the end of the year can provide insight into actionable items to achieve desired results and help to avoid surprises once the tax deadline rolls around.

08/21/2025

To register for the webinar, click on the link below:

https://attendee.gotowebinar.com/register/3688837771414251102

08/01/2025

The 2025 Ohio sales tax holiday will run from August 1st through August 14th of 2025.

The 2025 sales tax exemption will apply to all goods $500 and under except watercraft, outboard motors, motor vehicles, alcoholic beverages, to***co, v***r products, or any item that contains ma*****na.

For more information see https://tax.ohio.gov/business/ohio-business-taxes/sales-and-use/sales-tax-holiday

07/09/2025

On July 4th, 2025 President Trump delivered on his signature tax reform by signing the One Big Beautiful Bill into law.

The following are notable impacts for individuals and business owners:

· Permanent extension of lower individual tax rates from the original TCJA bill.

· Permanently increases the standard deduction, for 2025 the standard deduction increases to $15,750 for single filers and $31,500 for married filing jointly (MFJ) and adjusted for inflation in future years.

· Permanent expansion and increase of the child tax credit to $2,200 per child starting in 2025, with future inflationary adjustments.

· Increases the state and local tax (SALT) cap to $40,000 in 2025, subject to income phasedown limitations for income above $500,000. This is a temporary provision with significant changes.

· Creates a senior deduction in the amount of $6,000 for each taxpayer aged 65 and older, subject to phaseout of 6% for income over $75,000 ($150,000 MFJ) for tax years 2025-2028.

· Creates a new deduction for qualifying car loan interest of up to $10,000 for tax years 2025-2028, subject to income phaseout starting at $100,000 ($200,000 MFJ).

· Creates a new deduction for qualified cash tips of up to $25,000 per taxpayer subject to income phaseout above $150,000 ($300,000 MFJ) for tax years 2025-2028.

· Creates a new deduction for qualified overtime pay of up to $12,500 ($25,000 MFJ) subject to income phaseout above $150,000 ($300,000 MFJ) for tax years 2025-2028.

· Permanently lowers the deduction for qualified residence interest to $750,000 in home mortgage acquisition debt and permanently treats certain mortgage insurance premiums on acquisition debt as qualified residence interest.

· Permanent suspension of miscellaneous itemized deduction, while in 2026 creating an itemized deduction for eligible educators.

· Creates a charitable contribution deduction for non-itemizers of $1,000 for single filers or $2,000 for MFJ filers beginning in 2026 for cash contributions.

· Creates a floor for charitable contributions for itemized deductions of .5% of AGI beginning in 2026.

· Creates itemized deduction limitation for top income earners in 2026 by reducing itemized deductions by 2/37ths of the lesser of (1) the amount of itemized deductions or (2) the amount of taxable income that exceeds the 37% tax rate bracket.

· In tax year 2027, the bill creates a tax credit of up to $1,700 for qualifying contributions to scholarship-granting organizations.

· Terminates the previously owned clean vehicle credit and clean vehicle credit after September 30, 2025.

· Terminates the energy-efficient home improvement credit and residential clean energy credit after December 31, 2025.

· Permanently increases the estate tax exemption to $15 million ($30 million for married filing jointly) in 2026 with future inflation indexing.

· Creates tax-deferred investment account for children, called a “Trump account” beginning in 2026. Contributions are limited to $5,000 annually before the beneficiary turns 18 and subject to other age and distribution rules.

· Expands eligible educational expenses for 529 plans in 2025 and increases the annual limit of 529 plan distributions from $10,000 to $20,000 for K-12 expenses beginning in 2026.

· Permanently extends the Qualified Business Income (QBI) deduction at 20%, while providing for a minimum deduction of $400 for taxpayers with at least $1,000 of QBI and expands the phase-in threshold for impacted filers.

· Permanent 100% bonus depreciation for qualifying property acquired after January 19, 2025.

· Sets Section 179 expense limits at $2,500,000 with a phasedown threshold of $4,000,000 beginning in 2025, both indexed to inflation going forward.

· Special depreciation allowance for qualifying nonresidential real property used in manufacturing, called qualified production property.

· Increases information reporting for 1099-NEC/1099-MISC to $2,000 beginning in 2026.

· Allows qualifying sellers of qualified farmland after enactment to elect to pay capital gains tax in for equal annual installments.

· Makes the excess business loss rules permanent

The highlights above are summaries of notable changes which may comprise of additional limitations and calculations as well as subject to modifications as future Treasury guidance becomes available.

The One Big Beautiful Bill contains complex changes and impacts a broad base of taxpayers. To understand how these changes may affect your unique situation, please reach out to us for personalized guidance.

07/02/2025

Ohio Governor Mike DeWine recently signed the biennium budget bill on June 30, 2025. The bill contains the following notable tax law changes:

• Personal income tax rates are reduced over a two-year period (2025 & 2026). The top tax rate is now 3.125% for 2025 and in 2026 Ohio will move to a flat tax rate of 2.75%.
• Increases home school expense tax credit to $250 per qualifying student.
• Creates a deduction of up to $750 for contributions to qualifying pregnancy resource centers.
• Repeals the campaign contribution credit effective 2026.

Stay tuned for Federal changes coming soon related to the One Big Beautiful Bill in Washington, D.C.

06/12/2025

Mark your calendars!

Ohio recently announced the annual Ohio sales tax holiday for 2025.

The 2025 Ohio sales tax holiday will be longer than in 2024 and run from August 1st through August 14th of 2025.

The 2025 sales tax exemption will apply to all goods $500 and under except watercraft, outboard motors, motor vehicles, alcoholic beverages, to***co, v***r products, or any item that contains ma*****na.

For more information see https://tax.ohio.gov/business/ohio-business-taxes/sales-and-use/sales-tax-holiday

05/29/2025

May 29th is National 529 Day!

A 529 plan is a qualified tuition program that allows taxpayers to contribute to an account for qualified education expenses.

The contribution is not subject to income limitations and distributions used for qualifying expenses are tax free. In addition, contributions are considered a gift and excluded from the contributor’s estate.

Qualifying expenses may include:
• Post-secondary tuition, fees, books, supplies, and required equipment
• Tuition for elementary or secondary public, private, or religious school (limited to $10,000 per year)
• Room and board for at least a half-time student
• Principal or interest payments on qualified education loans (subject to a $10,000 lifetime cap)

Contributions to a 529 plan are deductible on the Ohio return subject to an annual deductible limit of $4,000 per beneficiary. Any excess contributions can be carried forward to future years. Contributions to any state plan are eligible for this deduction (prior to 2023, the contribution had to be to an Ohio 529 plan).

Please reach out if you have questions on how a 529 plan may impact your tax or estate plan.

12/03/2024

Taxpayers often make tax-deductible charitable donations. One planning strategy that should be considered is donating appreciated stock instead of cash.

Taxpayers donating appreciated stock receive a double benefit – avoiding the tax on capital gain and a donation equal to the fair market value of the stock.

For example, a taxpayer holds a stock for years with a fair market value of $25,000 and a basis of $5,000. If the taxpayer sells the stock and donates the proceeds, the taxpayer has a $20,000 capital gain on the stock and a $25,000 charitable donation. However, if the same taxpayer donates the stock directly, the taxpayer receives a $25,000 charitable donation, but avoids any tax on the capital gain.

The stock must be held at least a year and there is a 30% adjusted gross income limitation that could apply.

If you are planning to itemize and make charitable contributions this may be a planning strategy to consider. Be sure to consult with your tax and/or financial professional for your specific situation.