Mike Thrift

Marketing Manager

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May 13, 202614 min read

Section 754 Election and 743(b) Basis Adjustments: How Partnerships Step Up Inside Basis When a Partner Buys In or Dies

A Section 754 election triggers a 743(b) inside-basis step-up when a partner dies, sells, or is bought in — preventing heirs and incoming partners from paying tax twice on the same appreciation. This guide covers 743(b) and 734(b) mechanics, Section 755 allocation across asset classes, the substantial built-in loss rule, Form 15254 revocation, and when the administrative cost outweighs the benefit.

Mike Thrift

partnershipstax-planningestate-planning

May 13, 202610 min read

Section 83(i) Explained: A Five-Year Tax Deferral for Private-Company RSUs and NSOs

Section 83(i) lets qualified rank-and-file employees at eligible private companies defer federal income tax on RSU vests and NSO exercises for up to five years, but FICA is still due at vesting, the 30-day election window is unforgiving, and the 80 percent broad-based grant rule keeps most startups from offering it.

Mike Thrift

taxtax-planningtax-compliance

May 13, 202613 min read

Self-Employed Health Insurance Deduction Under Section 162(l): The Above-the-Line Write-Off That Beats Itemizing for Sole Proprietors and S-Corp Owners

Section 162(l) lets sole proprietors, partners, and more-than-2% S-corp shareholders deduct 100% of medical, dental, vision, and long-term care premiums above the line on Schedule 1, Line 17—if they clear the earned-income cap, the spouse-employer rule, and the W-2 reporting choreography on Form 7206.

Mike Thrift

taxtax-deductionsself-employment

May 13, 202614 min read

Single Audit Compliance Under 2 CFR Part 200: Why $1 Million in Federal Funds Triggers a SEFA Audit

A practical walkthrough of the Single Audit Act, the new $1 million federal expenditure threshold effective for fiscal years beginning on or after October 1, 2024, the SEFA's role, the four-step risk-based major program selection, the 12 compliance areas auditors test, and the steps nonprofits and local governments should take before crossing the threshold.

Mike Thrift

compliancenonprofitgrants

May 13, 202614 min read

The $1 Million Single Audit Trap: Uniform Guidance, SEFA, and How Nonprofits and Governments Pass Federal Compliance

OMB raised the single audit threshold to $1 million in federal expenditures starting October 1, 2024. This guide explains the Subpart F audit under 2 CFR 200, SEFA reporting, four-step major program determination, the 40 and 20 percent coverage rules, and the nine-month Federal Audit Clearinghouse submission deadline for nonprofits and state and local governments.

Mike Thrift

nonprofitcompliancegrants

May 13, 202610 min read

State Apportionment Formulas for Multistate Businesses: Single Sales Factor, Three-Factor, and Market-Based Sourcing Explained

How U.S. states divide multistate corporate income using single sales factor, three-factor, and market-based sourcing rules — including throwback and throwout traps, P.L. 86-272 limits, and the bookkeeping detail required to file accurately.

Mike Thrift

multi-state-taxtax-planningnexus

May 13, 202612 min read

State Corporate Income Tax Apportionment in 2026: How Single Sales Factor and Market-Based Sourcing Reshape SaaS Tax Bills

A guide to state corporate income tax apportionment in 2026 — why 34 of 44 corporate-tax states now use single sales factor, how market-based sourcing rules in California, Kansas, and Arkansas shift SaaS and service company tax bills toward customer location, and five strategies to manage the exposure.

Mike Thrift

taxtax-compliancemulti-state-tax

May 13, 202615 min read

The 90-Day Letter: How Small Businesses Can Fight an IRS Notice of Deficiency in Tax Court

A statutory notice of deficiency gives a small business owner exactly 90 days to petition the U.S. Tax Court — the only path to challenge an IRS adjustment without paying first. This guide explains CP3219A, the Section 6213 deadline, the $50,000 small tax case election, and the records that decide outcomes.

Mike Thrift

taxsmall-businesstax-compliance

May 13, 202611 min read

The 90-Day Letter: How Small Businesses Challenge IRS Audit Findings Without Paying First

A Statutory Notice of Deficiency gives a small business 90 days to petition the U.S. Tax Court before the IRS assesses additional tax. This guide explains the CP3219A deadline, Form 5564 waiver, S-case election, and the four realistic responses every owner should weigh.

Mike Thrift

taxtax-compliancesmall-business

May 13, 202613 min read

Subpart F Income and Controlled Foreign Corporations: Why U.S. Owners Get Taxed on Foreign Profits Before the Cash Comes Home

Subpart F forces U.S. shareholders of a controlled foreign corporation to recognize foreign profits as current-year income, even when no cash is distributed. This guide covers the 10 percent threshold, the four triggering income categories, Section 958 constructive ownership traps, Form 5471 penalties, and how the 2026 OBBBA rewrite (NCTI, restored 958(b)(4), 40 percent Section 250 deduction) reshapes the rules.

Mike Thrift

international-taxforeign-corporationstax-compliance

May 13, 202613 min read

Subpart F Income and CFC Rules: U.S. Tax on Foreign Corporation Profits Under NCTI in 2026

How U.S. shareholders of foreign corporations are taxed on undistributed profits in 2026: the 10 percent threshold, Section 958 constructive ownership, Form 5471 filing duties, and the OBBBA rewrite that replaced GILTI with Net CFC Tested Income (NCTI).

Mike Thrift

international-taxforeign-corporationstax-compliance

May 13, 202611 min read

Treasury Bills for Business Cash Management: A 2026 T-Bill Ladder Guide

A practical 2026 playbook for small businesses using a Treasury-bill ladder to earn ~3.66% on idle operating cash, capture the state and local tax exemption on Treasury interest, and keep the bookkeeping clean.

Mike Thrift

treasury-managementsmall-businesscash-flow

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