Buban Bookkeeping

10/05/2026

🚨 Be careful when someone tells you they found a way to “escape income tax.”

Social media is full of influencers promoting trusts, LLCs, deductions, and other strategies as if simply putting income into a different entity means the IRS no longer gets to tax it.

That’s not how the tax code works.

A *trust does not make income tax-free.* An LLC does not automatically make income tax-free. And moving money from one account or entity to another doesn't magically erase taxable income.

There are legitimate tax-planning strategies that can defer income, shift who is taxed, reduce taxable income when the law allows it, or take advantage of specific deductions and credits.

But there is a BIG difference between:

✅ Legitimate tax planning
and
🚩 A promise that you can simply “escape” income tax.

And here's another point influencers often leave out: trusts actually have very compressed income-tax brackets. A properly structured trust may serve an important estate-planning purpose, but creating a trust by itself isn't an income-tax escape hatch.

Before implementing a strategy you saw on TikTok, Instagram, YouTube, or Facebook, ask:

“What specific section of the tax code allows this?”

And even better:

“Would my CPA or tax attorney put this strategy in writing for my specific situation?”

If the answer is vague, that's a pretty good reason to slow down.

💡 Smart tax planning isn't about escaping taxes. It's about understanding the rules and using the rules you're legally entitled to use.

Tax laws are complex and individual circumstances vary. Consult a qualified tax professional before implementing any tax strategy.

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09/28/2026

09/21/2026

🚨 Be careful where you get your tax advice.

There are a lot of influencers online confidently giving tax advice without actually understanding how taxes work.

A couple of red flags 🚩:

❌ They claim that setting up a trust will automatically save you income taxes.

❌ They throw around the “Augusta Rule” like it’s a magical loophole that lets everyone write off personal expenses.

Trusts can have legitimate legal, estate planning, and tax purposes. The Augusta Rule is a real part of the tax code. But neither is a universal tax-saving hack, and whether either strategy makes sense depends heavily on the facts.

If someone is selling you a “secret” tax strategy without asking about your income, business structure, expenses, goals, or overall situation… be skeptical.

Good tax planning is individualized. Tax gimmicks are usually marketed in bulk. Also, if their page has an automatic reply to your comment you are probably dealing with an influencer that does not understand the tax code and gives terrible advice.

Before implementing advice from TikTok, Instagram, YouTube, or Facebook, talk to a qualified tax professional.

💡 Just because someone has followers doesn't mean they understand the tax code.

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09/07/2026

📣 Did you know there’s a NEW tax deduction for seniors that started in tax year 2025? 💰

If you are 65 or older, you may be eligible for an additional deduction of up to $6,000 on your federal tax return. If you’re married and both spouses qualify, that could be up to $12,000! 💵🎉

Here are a few important points to know: 👇

🔹 This is in addition to the existing additional standard deduction for seniors.

🔹 It applies for tax years 2025 through 2028. 📅

🔹 The deduction is available whether you take the standard deduction or itemize.

🔹 The deduction begins to phase out when modified adjusted gross income (MAGI) is above $75,000 for single filers or $150,000 for married couples filing jointly, and is completely phased out at $175,000 for single filers or $250,000 for married couples filing jointly.

👵👴 So if you’re 65+ or helping a parent or loved one with their taxes, don’t forget about this! ❤️

08/28/2026

🚨 Big News for Business Owners: The 1099 Reporting Threshold is Increasing! 🚨

One of the changes in 2026 is an increase to the federal reporting threshold for Forms 1099-NEC and 1099-MISC.

✅ Current Rule: Businesses generally issue a 1099 when they pay an independent contractor or vendor $600 or more during the year.

✅ New Rule (Beginning with payments made in 2026): The reporting threshold increases to $2,000, with future inflation adjustments beginning in 2027.

What does this mean?
• Fewer 1099s may need to be issued for smaller payments.
• Businesses will still need to keep accurate records of all business expenses.
• This does NOT mean income under $2,000 is tax-free. Contractors and self-employed individuals are still required to report all taxable income, whether they receive a 1099 or not.

⚠️ Remember: This change applies to payments made in 2026 (reported in early 2027). The $600 threshold still applies to 2025 payments.

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08/17/2026

🚗 The "Trade-In Every Year and Write It Off" Myth 💵

We hear this all the time:

"I'll just keep trading in my truck every year, take Section 179 and/or bonus depreciation, and write off the whole thing."

Not so fast.

Here's what many people don't realize: depreciation recapture is real.

When you elect Section 179 or bonus depreciation, you may reduce your vehicle's tax basis to $0 in the first year.

Later, when you sell or trade that vehicle, the IRS generally uses the amount you receive for it (such as the trade-in allowance or fair market value) to determine your gain. Because your basis may be $0, all of that gain may be depreciation recapture.

And here's the part that catches many people off guard: depreciation recapture is generally taxed at ordinary income tax rates, not the lower long-term capital gains rates.

Section 179 and bonus depreciation are powerful tax planning tools, but they aren't a loophole that lets you trade vehicles every few years without future tax consequences.

The best tax strategy isn't chasing the biggest deduction today—it's understanding the entire tax impact from the day you buy the asset until the day you dispose of it.

Before you trade in that next vehicle because someone said it's a "write-off," make sure you understand the tax consequences. A large deduction today can create taxable ordinary income later.

Have you heard someone say, "Just keep getting new trucks and writing them off"? Let us know in the comments. 👇