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Taxes

Aug 12
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By Congress at Work, Tax and Financial News, Taxes

The big beautiful tax bill of 2025 has been enacted, finally, bringing significant changes.

 

Overall, the bill largely extends the benefits under the 2017 tax law with a few additional tax savings for special groups. Here are a few changes most relevant to our clients.

 

Key Provisions of the Big Beautiful Bill:

  • Businesses stand to benefit the most. QBI (Qualified Business Income) deduction is now permanent. This means you are basically taxed on 80% of your business profit, and not 100%. 

 

  • Residents of high tax states (e.g. CA and NY) States will benefit from the increased State and Local Tax (SALT) deduction of $40,000. PhaseOuts for above $400K – $500K in income. The deduction reverts to $10,000 for incomes above $500K. 

 

  • Bonus Depreciation is restored to 100%. Plus you can write off up to $2.5M in certain assets when first placed in business (vehicles, software, equipment, etc under section 179. 

 

  • Capital Gains invested in Qualified Opportunity Zones can be permanently eliminated if held for 10 years. This is a great way to defer gain on the sale of capital assets like a home or stock.

 

  • Employees/Founders of Tech Startups: 
    • QSBS (Qualified Small Business Stock) gain exclusion increased to $15M from $10M  and allows a partial benefit for stock held from 3 years. This is one the most significant benefits if you own stock in a company under $75M in value. 
    •  R&D credit for any amount paid for software development 

 

There are many other changes in the bill which will be applied when your return is prepared. However, if you expect a significant impact, contact us for an individual review.

Jun 02
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Quarterly Estimated Taxes

By Taxes

Hey folks! The due date for second quarter estimates is around the corner! (June 17, 2019)

If you are a self-employed business owner or an independent contractor, make sure to discuss your estimated tax payments (and whether or not you should be making them) with your certified public accountant. If this is your first year dealing with being self-employed (or the first time you’ve heard you might have to pay estimated taxes), feel free to contact me and we can discuss your situation.

A quick primer: the IRS requires a certain amount of income taxes to be paid throughout the year, either based on 100% of your prior year tax (110% if your income was above $150,000K), or 90% of your projected current year tax. Most people don’t have to deal with this because they are wage employees. In other words, their employers withhold taxes on their behalf (usually through withholding from each paycheck that is received). This is why you don’t see the “gross” amount of your salary in your bank when you check it on pay day. What you actually receive is an amount net of taxes withheld for the Federal government, New York state, and NYC (if you are a NYC resident).

Unfortunately, if you own your own business, the responsibility falls on you to make sure tax is paid throughout the year. Have a look at this page for more detailed information on the topic. It is never too late to catch up on your estimated taxes – let your CPA handle this for you and make sure you are squared away with the IRS and NYS.

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