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Federal Income Tax

What you need to know about filing an extension — and minimizing penalties

Application For Automatic Extension Of Time To File U.S. Individual Income Tax Return, Failure To Pay Tax Penalty, Failure-To-File Tax Penalities, Federal Income Tax /

If you don’t have everything ready to complete your 2025 federal individual income tax return by the April 15 deadline, you can request an automatic extension. Filing Form 4868, “Application for Automatic Extension of Time To File U.S. Individual Income Tax Return,” by April 15 can give you breathing room to file accurately and protect […]

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Debt vs. equity: Classification counts when shareholders put money into their corporations

C Corporation, Capital Contributions (Equity), Closely Held Corporations, Debt-to-equity Ratio, Federal Income Tax, Shareholder Loans, Small Business, Small Business Owners, Small Business Tax Tips, Small Business Tips /

If you operate your business as a C corporation, how you put money into your company — and how you take it back out — can have a major impact on your tax bill. Payments from shareholders to fund the business can either be classified as capital contributions (equity) or shareholder loans (debt). That might sound

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4 types of interest expense you may be able to deduct

Auto Loan Interest, Federal Income Tax, Individual Income Tax, Individual Tax Tips, Itemized Deduction, Mortgage loans, One, Big, Beautiful Bill Act, Student Loans /

Personal interest expense generally can’t be deducted for federal tax purposes. There are, however, exceptions. Here are four, one of which is a new break under the One Big Beautiful Bill Act (OBBBA), which was signed into law in 2025. 1. Mortgage interest Perhaps the most well-known interest expense deduction, home mortgage interest may be

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What’s your potential business vehicle deduction?

2025 Mileage Deduction, Actual Expenses Method, Business Income Tax, Business Mileage, Depreciation Deduction (Section 179), Federal Income Tax, Small Business, Small Business Owners, Small Business Tax Tips, Small Business Tips, Tax Deduction, Vechicle /

If you used one or more vehicles in your business during 2025, you may be eligible for valuable tax deductions on your 2025 income tax return. Businesses can generally deduct expenses attributable to business use of a vehicle plus depreciation. However, the rules are complicated, and your deduction may be affected by factors such as

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Deferring taxes on advance payments

Accrual Method of Accounting, Accrual-Basis Taxpayers, Cash Method of Accounting, Deferred Tax, Federal Income Tax, Small Business, Small Business Owners, Small Business Tax Tips, Small Business Tips /

An advance payment is one received by a business before it provides whatever is being paid for. For federal income tax purposes, generally advance payments must be reported as taxable income in the year received. This treatment always applies if your business uses the cash method of accounting for tax purposes. But, if your business

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There’s still time to set up a SEP and reduce your 2025 taxes

Federal Income Tax, Limited Liability Company, Partnerships, S Corporation, Self Employed, Simplified Employee Pension (SEP), Small Business, Small Business Owners, Small Business Tax Tips, Tax-Advantaged Retirement Plan, Taxes 2025 /

If you own a business or are self-employed and haven’t already set up a tax-advantaged retirement plan, consider establishing one before you file your 2025 tax return. If you choose a Simplified Employee Pension (SEP), you’ll be able make deductible 2025 contributions to it, saving you taxes. Not only is the SEP deadline favorable, but

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Tax filing FAQs for individuals

Federal Income Tax, Federal Income Tax Filing, Federal Taxes, Individual Income Tax, Individual Tax Tips, Tax Identity Theft, Tax Refund /

The IRS is opening the filing season for 2025 individual income tax returns on January 26. This is about the same time as when the agency began accepting and processing 2024 tax year returns last year, despite IRS staffing having been significantly reduced since then. Here are answers to some FAQs about filing. When is

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Tax filing update for pass-through entities

Business Interest Expense Deductions, Federal Income Tax, First-Year Depreciation, Limited Liability Partnership (LLP), LLC, One, Big, Beautiful Bill Act, Partnerships, Pass Through Taxation, S Corporation, Small Business, Small Business Owners, Small Business Tax Tips, Small Business Tips, Tax Deadlines /

Do you operate a business as a partnership, a limited liability company (LLC) treated as a partnership for tax purposes or an S corporation? In tax lingo, these are called “pass-through” entities because their taxable income items, tax deductions and tax credits are passed through to their owners and taken into account on the owners’ federal

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Significant changes to information reporting go into effect for the 2026 tax year

Employees, Federal Income Tax, Independent Contractors, One, Big, Beautiful Bill Act, Small Business Tax Tips, Small Business Tips, State Income Tax, Taxes and Tips, Tips And Overtime /

If your business has employees or uses independent contractors, you have associated annual information reporting obligations. The One Big Beautiful Bill Act (OBBBA) makes changes impacting these rules, but not for the 2025 tax year. Tips and overtime income For 2025 through 2028, the OBBBA creates new deductions for employees who receive qualified tips income

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How will taxes affect your merger or acquisition?

(LTCG) Net Long-Term Capital Gain, Asset Sale of Business, C Corporation, Federal Income Tax, Federal Taxes, Limited Liability Company, One, Big, Beautiful Bill Act, Past-Through Entities, Sale of Business Assets, Small Business, Small Business Owners, Small Business Stock, Small Business Tax Tips, Small Business Tips, Sole Proprietors, Stock Sale of Business /

Whether you’re selling your business or acquiring another company, the tax consequences can have a major impact on the transaction’s success or failure. So if you’re thinking about a merger or acquisition, you need to consider the potential tax impact. Asset sale or stock sale? From a tax standpoint, a transaction can basically be structured

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