#tax-deductions

Tax Deductions

Maximize tax deductions and reduce your tax liability legally

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May 13, 202611 min read

Section 199A SSTB Limitation: Why High-Earning Doctors, Lawyers, and Consultants Lose the 20% QBI Deduction

Section 199A's 20% QBI deduction phases out entirely for high-income doctors, lawyers, consultants, and other specified service trades or businesses (SSTBs) — costing a married surgeon at $700,000 of K-1 income roughly $52,000 a year. This guide covers the 2026 income thresholds (~$394,600 MFJ phase-in, ~$544,600 fully phased out), the de minimis safe harbor at 10% / 5% of receipts, the anti-"crack and pack" rules under Reg. §1.199A-5(c)(2), and practical strategies like defined-benefit plans and W-2 wage planning to preserve the deduction.

Mike Thrift

tax-planningtax-deductionshealthcare

May 13, 202612 min read

Section 199A's SSTB Cliff: Why Doctors, Lawyers, and Consultants Lose the 20 Percent QBI Deduction

Section 199A's SSTB rule denies the 20 percent qualified business income deduction to high-earning doctors, lawyers, consultants, and financial advisors. In 2026 the joint-filer phase-out runs from $403,500 to $553,500, and OBBBA added a permanent $400 minimum deduction for active business owners.

Mike Thrift

tax-planningtax-deductionss-corporation

May 13, 202615 min read

Section 469 Passive Activity Grouping: How Real Estate Investors Unlock Suspended Losses

How real estate investors and multi-entity owners use the Section 469 grouping election under Reg 1.469-4 to aggregate hours across properties and release suspended losses — covering the appropriate economic unit test, the Reg 1.469-9(g) real estate professional aggregation, Rev. Proc. 2010-13 disclosure rules, and why the election is easier to file than to undo.

Mike Thrift

real-estatetax-planningtax-deductions

May 13, 202614 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 12, 202616 min read

Section 162(a)(2): How the Tax Home Rule and One-Year Test Decide Whether Your Travel Is Deductible

A 2026 field guide to Section 162(a)(2) travel deductions — how the tax home rule, the temporary-vs-indefinite test, and the one-year rule determine whether consultants, traveling nurses, and other mobile workers can deduct lodging, meals, and per diem.

Mike Thrift

taxtax-deductionstravel

May 12, 202612 min read

Section 174A Restored: How Small Businesses Reclaim R&D Tax Refunds Before July 6, 2026

Section 174A restores immediate domestic R&E expensing and lets small businesses with $31 million or less in average annual gross receipts amend 2022, 2023, and 2024 returns for refunds — but the retroactive election must be filed by July 6, 2026.

Mike Thrift

taxtax-planningtax-deductions

May 11, 202611 min read

Accountable Plan Reimbursements: The Tax-Free Way S-Corp Owners Get Paid Back for Home Office, Mileage, and Travel

An accountable plan lets an S-corp reimburse shareholder-employees tax-free for home office, mileage, internet, and travel — but only when the written plan, 60-day substantiation, and 120-day excess-return rules are followed.

Mike Thrift

s-corptax-deductionstax-planning

May 11, 202611 min read

Defined Benefit Plans: The Six-Figure Tax Shelter Most Solo Professionals Miss

Defined benefit and cash balance plans let high-earning solo professionals over 45 deduct $150,000 to $290,000 a year — three to four times what a SEP-IRA or Solo 401(k) allows. This guide walks through the contribution math, candidate profile, costs, deadlines, and how to stack a DB plan on top of a Solo 401(k).

Mike Thrift

retirement-planstax-planningtax-deductions

May 11, 202614 min read

Form 8829 Home Office Deduction: Why Picking the Wrong Method Could Cost You $3,000 a Year

A side-by-side comparison of the simplified $5-per-square-foot method and Form 8829's actual expense method for the 2026 home office deduction, with worked examples, depreciation recapture math, carryover rules, and a decision framework for self-employed filers.

Mike Thrift

tax-deductionsself-employmentsmall-business

May 11, 202611 min read

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.

Mike Thrift

taxtax-deductionspayroll

May 11, 202612 min read

No Tax on Tips: How the New $25,000 Above-the-Line Deduction Actually Works for Servers, Stylists, and Drivers Through 2028

The One Big Beautiful Bill Act creates an above-the-line deduction of up to $25,000 in qualified tips for tax years 2025 through 2028, available only to workers in IRS-listed tipped occupations and phased out above $150,000 MAGI ($300,000 joint).

Mike Thrift

tax-deductionstax-planningpayroll

May 11, 202610 min read

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.

Mike Thrift

taxtax-planningtax-deductions

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