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Tax
Tax strategies, planning, and compliance for individuals and businesses
Foreign Tax Credit vs. Foreign Earned Income Exclusion: Which Should Expats Pick in 2026?
A side-by-side guide to Form 1116 (Foreign Tax Credit) and Form 2555 (Foreign Earned Income Exclusion) for expats and cross-border workers in 2026 — the $132,900 FEIE cap, the five-year revocation lock-in, the FTC stacking rule, and a worked example showing when each one actually saves money.
Form 8594 and Section 1060: Allocating Purchase Price Across Asset Classes I–VII in a Business Sale
Buyers and sellers in an asset acquisition must each file Form 8594 under Section 1060, allocating consideration across seven asset classes using the residual method. Mismatched filings can trigger $50,000 penalties and audit cascades; a single dollar moved between Class IV inventory and Class VII goodwill can swing after-tax cash by 17 cents.
Form 8832 Entity Classification Election: How LLCs and Foreign Entities Use the Check-the-Box Rules
Form 8832 lets eligible entities — domestic LLCs and most foreign companies — elect to be taxed as a disregarded entity, partnership, or C corporation. This guide covers default classifications, the 60-month lockout, late-election relief under Rev. Proc. 2009-41, and how Form 8832 differs from Form 2553.
OBBBA No Tax on Overtime: How the New $12,500 Deduction for FLSA Premium Pay Works Through 2028
The One Big Beautiful Bill Act creates an above-the-line deduction of up to $12,500 ($25,000 joint) on FLSA-required overtime premium pay for tax years 2025-2028, with a MAGI phase-out starting at $150,000 single and mandatory W-2 Box 12 Code TT reporting from 2026.
The $6,000 Senior Bonus Deduction: How Taxpayers 65 and Older Can Cut Their 2026 Tax Bill (Through 2028)
The OBBBA's new $6,000 senior bonus deduction (up to $12,000 per couple) phases out at 6% per dollar of MAGI above $75,000 single / $150,000 joint and disappears entirely at $175,000 / $250,000. Available for tax years 2025 through 2028, stackable with the standard deduction and itemized deductions for taxpayers 65 and older.
Section 127 Educational Assistance: How Small Businesses Pay $5,250 of Tuition or Student Loans Tax-Free in 2026
Section 127 lets employers reimburse up to $5,250 per employee per year for tuition, books, or student loan principal and interest with no payroll or income tax. OBBBA made the student loan provision permanent in July 2025 and begins indexing the cap to inflation in 2027 — here is how a small business sets up a compliant plan.
Section 132 Fringe Benefits: How Employers Deliver Tax-Free Perks Without Inflating Payroll
A practical guide to Section 132 fringe benefits — working condition, de minimis, employee discounts, no-additional-cost services, the 2026 $340/month transportation limits, and achievement award rules — covering which perks qualify as tax-free, the cash-equivalent trap, and how to document everything so the program survives an IRS payroll audit.
Section 162(l) Self-Employed Health Insurance Deduction: A 2026 Guide for Sole Proprietors, Partners, and S-Corp Shareholders
Section 162(l) lets self-employed taxpayers deduct 100% of medical, dental, vision, Medicare, and long-term care premiums above the line on Schedule 1, Line 17 via Form 7206. This guide covers the earned-income ceiling, the subsidized-employer trap, the S-corp W-2 inclusion step, and the ACA Premium Tax Credit iteration for the 2026 tax year.
Section 162(m) and the $1 Million Cap: Why Your Covered Employee List Is About to Get a Lot Longer in 2026
Section 162(m) caps a public company's federal deduction for executive pay at $1 million per person. Starting in 2026, OBBBA aggregates compensation across the IRC § 414 controlled group — including partnerships and LLCs — and the ARPA expansion adds the five highest-paid employees to the covered list in 2027.
Section 197 Amortization of Intangibles: How Buyers Write Off Goodwill, Customer Lists, and Non-Competes Over 15 Years
Section 197 lets buyers in U.S. asset acquisitions amortize goodwill, customer lists, non-competes, and other intangibles ratably over 180 months. This guide covers the eight qualifying categories, Form 8594 allocation across Classes I–VII, the pooling rule, and anti-churning traps that can wipe out the deduction.
Section 6694 Tax Preparer Penalties: How Unreasonable Positions, Willful Conduct, and Section 6695 Due Diligence Failures Cost CPAs and EAs Real Money
Section 6694 imposes preparer penalties of $1,000 or 50% of fees for unreasonable positions, escalating to $5,000 or 75% for willful or reckless conduct. Section 6695(g) adds roughly $650 per EITC, CTC, AOTC, or head-of-household failure on every return. Here is how CPAs and EAs document, disclose, and defend their way out of them.
Trader Tax Status and the Section 475(f) Mark-to-Market Election: How Active Traders Escape the Wash Sale Rule and the $3,000 Capital Loss Cap
Active traders can convert capital losses into ordinary deductions and eliminate the wash sale rule by filing a Section 475(f) mark-to-market election — but the statement must be attached to the prior year's April 15 return. A working guide to qualifying for trader tax status, the three big benefits of the election, Form 3115 mechanics, and the mistakes that invalidate it.