Carroll and Company, CPAs

10/31/2025

10/16/2025

Carroll and Company CPAs presents Fancy Franny, the Lady in Red.
We’re proud to join TMH Foundation and First Commerce Credit Union in the 2025 Flamingo Challenge to raise critical support for patients of the Walker Breast Program at TMH. Special thanks to Karen and Charlotte at Community Thrift Market for getting Franny all gussied up for a night out!

04/04/2025

04/04/2025

Special thanks goes out to our community partner, Carroll and Company, CPAs! Thank you so much for your support of Capital City Rowing ❤️

04/02/2025

When preparing your tax return, we’ll check one of the following statuses: single, married filing jointly, married filing separately, head of household (HOH) or qualifying widow(er). Filing as HOH is more favorable than filing as single. To illustrate, the 2025 HOH standard deduction is $22,500, while it’s $15,000 for singles. To be eligible, you must maintain a household that, for more than half the year, is the principal home of a “qualifying child” or other relative of yours whom you can claim as a dependent. The IRS considers you to “maintain a household” if you live in the home for the tax year and pay over half the cost of running it. We can answer any questions about your situation. https://bit.ly/4fkjoBx

03/31/2025

For federal income tax purposes, rental real estate losses are generally considered passive activity losses (PALs), which can only be deducted against passive income from other sources. If you don’t have enough passive income, excess PALs are suspended and carried forward to future years. They can be deducted later when you have enough passive income or sell the property. But there’s an exception for real estate professionals. If you qualify, rental losses can be treated as non-passive, allowing you to deduct them currently, regardless of passive income. This can provide a significant tax break if you’re eligible. You may also be eligible for other exceptions. Contact us for help. https://bit.ly/4fkjoBx

03/28/2025

Suppose your adult child or friend needs to borrow money. You may want to help by making a personal loan. But there are tax implications that you should understand. You want to be able to prove that you intended for the transaction to be a loan rather than an outright gift. That way, if the loan goes bad, you can claim a non-business bad debt deduction for the year the loan becomes worthless. You should have a written promissory note. It’s best to charge an interest rate that equals or exceeds the applicable federal rates set by the IRS. They potentially change each month. For April 2025, they range from 4.09% to 4.52%, depending on the loan length. Contact us if you have questions. https://bit.ly/4fkjoBx

03/26/2025

Have you ever bought stock shares that later became worthless? (This may become relevant in light of recent market volatility.) At least you can claim a tax deduction. You can claim a capital loss equal to your basis in the stock (generally what you paid for it). The stock is treated as if it was sold on the last day of the tax year. This date affects whether the loss is short- or long-term. You may discover that a stock is worthless after you’ve filed your return for the year. In that case, you can amend your return for that year to claim a credit or refund. This can be done for 7 years from the due date of your original return, or 2 years from the date you paid the tax, whichever is later. https://bit.ly/4fkjoBx

03/24/2025

Staying compliant with payroll tax laws is crucial for small businesses. Mistakes can lead to fines, strained employee relationships and legal consequences. Here are four quick tips: 1) Maintain organized records so you can verify to the IRS that you’re withholding and remitting the correct amounts. 2) Understand withholding and adhere to filing and deposit deadlines. A “responsible person” who willfully fails to withhold or deposit employment taxes can be held personally liable for a steep penalty. 3) Stay current with regulatory changes. 4) Seek professional advice. We can help you select the right system, calculate employee withholding, navigate multi-state filing requirements and more. https://bit.ly/4fkjoBx

03/21/2025

When it’s time to consider your business’s future, succession planning can protect your legacy and successfully set up the next generation of leaders or owners. Here are five options to consider: 1) Transfer the business directly to family members through a sale or gifts. 2) Transfer ownership through a trust. 3) Engage in an employee or management buyout. 4) Establish an employee stock ownership plan. 5) Sell stock or assets to an outside buyer. Each of these options has tax implications. The best approach for you depends on factors including your retirement timeline, financial goals and family or employee involvement. Contact us about how to move forward in your situation. https://bit.ly/4fkjoBx

03/19/2025

If your employer offers tax-favored transportation fringe benefits, you should probably take advantage of them. For 2025, employer-provided mass transit passes for train, subway and bus systems are tax-free to an employee, up to $325 a month. Your company can’t deduct the cost of this benefit. However, your company can offer a salary-reduction arrangement that allows you to set aside up to $325 per month from your salary to pay for transit passes. That way, you pay with before-tax dollars. For 2025, employer-provided parking allowances are also tax-free up to $325 per month. You can be given this fringe on top of the tax-free $325 a month for transit passes. Contact us with questions. https://bit.ly/4fkjoBx

03/17/2025

Are you starting a business with partners and considering the best entity to form? An S corporation might be the ideal choice. One significant advantage of an S corp over a partnership is that, as an S corp shareholder, you won’t be personally liable for corporate debts. If you anticipate early losses, an S corp is more favorable than a C corp from a tax perspective. C corp shareholders typically don’t benefit from such losses, but S corp shareholders can deduct their share of the losses on their personal tax returns, up to their basis in the stock and any loans made to the entity. Contact us for more information. https://bit.ly/4fkjoBx