#tax-deductions
Tax Deductions
Maximize tax deductions and reduce your tax liability legally
The $40,000 SALT Cap: Should You Re-Itemize in 2026?
OBBBA raised the SALT deduction cap to $40,400 for 2026, but a 30-cent-per-dollar MAGI phase-down between $505,000 and $606,333 creates a roughly 45% effective marginal rate — the "SALT torpedo." Here is how to decide whether to re-itemize.
Section 1341 and the Claim of Right Doctrine: Recovering Tax on Clawed-Back Bonuses
Section 1341 lets a taxpayer who repays more than $3,000 of previously taxed income recover the tax cost—via a deduction or a credit, whichever is lower—on the repayment-year return rather than by amending the old one.
Section 7508A: How Federally Declared Disaster Relief Postpones Your Tax Deadlines
Section 7508A lets the IRS postpone tax deadlines up to one year for taxpayers in federally declared disaster counties—usually automatically by address. A Section 165(i) election can also move a casualty loss to the prior year's return for a faster refund.
The PTET SALT Cap Workaround: How Pass-Through Owners Convert State Tax Into a Federal Deduction
How partnerships and S corporations in 36+ states use the Pass-Through Entity Tax election under IRS Notice 2020-75 to deduct state income tax at the entity level and bypass the federal SALT cap — with a worked example, resident-credit mechanics, and 2026 election deadlines.
Section 163(h) Mortgage Interest Deduction in 2026: $750K Cap, Grandfathered Loans, and HELOC Rules
Section 163(h) decides whether your largest Schedule A line is a $14,000 deduction or an $8,500 one. Here is how the permanent $750,000 TCJA cap, the grandfathered $1 million pre-2018 loans, the HELOC "substantial improvement" rule, and the 2026 return of the mortgage insurance premium deduction actually work — with worked examples and the records you need on audit.
Section 163(j) Interest Expense Limitation: 30% ATI, the Small Business Exemption, and the Real Property Trade Election
Section 163(j) caps the business interest deduction at 30% of adjusted taxable income, and OBBBA restored the EBITDA-style add-back for tax years beginning after December 31, 2024. This guide walks through the calculation, the small business exemption under Section 448(c), the irrevocable real property trade or business election, the partnership EBIE basis trap, and the Form 8990 reporting choreography.
Section 195 and Section 248: The First $5,000 Every Founder Can Deduct
Section 195 and Section 248 let founders deduct the first $5,000 of startup costs and the first $5,000 of organizational costs in year one, with the remainder amortized over 180 months. A guide to the $50,000 phase-out, the deemed election, and the mistakes that forfeit the deduction for LLCs, partnerships, and corporations.
Section 274(n) Meals and Entertainment After TCJA: 100, 50, and Zero-Percent Categories, and the 2026 Section 274(o) Cliff
A working guide to Section 274's four meal deduction rates—100%, 80%, 50%, and zero—and the 2026 Section 274(o) cliff that ended the employer deduction for breakroom snacks, catered office lunches, and convenience-of-employer meals.
Section 469 Passive Activity Loss Rules: How Real Estate Investors Unlock Trapped Losses
A practical guide to Section 469 for real estate investors and side-business owners — the seven material participation tests, the $25,000 active-rental allowance, the real estate professional carve-out, the short-term rental angle, and the disposition rules that release suspended losses.
The Section 691(c) Deduction: How IRA Beneficiaries Recover Estate Tax
Beneficiaries of taxable estates can claim a Section 691(c) income tax deduction for federal estate tax already paid on inherited IRAs and other IRD assets. This guide covers eligibility, the with-and-without calculation, where to claim it on Schedule A, and the errors that cost families six figures.
100% Bonus Depreciation Is Back: How Small Businesses Combine Section 168(k) and Section 179 in 2026 to Write Off Equipment the Year They Buy It
100% bonus depreciation under Section 168(k) is permanent again for property placed in service after January 19, 2025, and Section 179's 2026 limit is $2,560,000. This guide shows how small businesses combine both to deduct equipment the year it is bought, with a worked $1.2M example and the disqualification traps to avoid.
Accountable Plans: How to Reimburse Owners and Employees Tax-Free
An accountable plan lets an S corporation reimburse owners and employees for mileage, home office, and supplies tax-free under Treasury Regulation 1.62-2. It requires three things—business connection, substantiation within 60 days, and return of excess within 120 days—and replaces the employee expense deduction the Tax Cuts and Jobs Act eliminated.