#tax-planning
Tax Planning
Strategic tax planning to minimize liability and maximize savings
The New Federal Scholarship Tax Credit (ECCA): What Small Business Owners Should Know Before 2027
The Educational Choice for Children Act creates a $1,700 federal income tax credit for cash donations to K-12 Scholarship Granting Organizations, starting with the 2027 tax year — but only in states that opt in. Here is how the nonrefundable, cash-only Section 25F credit works, the five-year carryforward, the 90% pass-through rule for SGOs, and why pass-through business owners should track their state's participation through 2026.
The OBBBA's Gambling Loss Cap Means You Can Owe Tax on Money You Never Actually Won
Starting in tax year 2026, the OBBBA caps gambling loss deductions at 90% of winnings, meaning gamblers and gaming-adjacent businesses can owe tax on breakeven or even losing years, prompting three bipartisan repeal bills in Congress.
Thermal Circuits v. Commissioner: Why Customer-Funded Facility Expansions Are Taxable Income
In Thermal Circuits, Inc. v. Commissioner, the Tax Court held that $4.3 million a customer paid to expand a manufacturer's facility was taxable income, not an excludable Section 118 capital contribution — because Thermal controlled the asset, the money was compensation for guaranteed capacity, and post-TCJA Section 118(b) excludes any customer contribution or contribution in aid of construction. What the ruling means for prepayments, tenant improvement allowances, and capacity deals.
Esports Organization Bookkeeping: Prize Pools, Sponsorships, and the New 1099 Threshold
Esports organizations must separate prize revenue from player distributions, recognize sponsorship revenue under ASC 606 as obligations are delivered, and track the 2026 rise of the Form 1099-NEC/MISC filing threshold from $600 to $2,000 per payee.
The Mega Backdoor Roth for Business Owners: How a Solo 401(k) Can Move $47,500 a Year Into Tax-Free Growth
For 2026 the IRS caps total 401(k) contributions at $72,000 versus a $24,500 employee deferral limit; business owners can convert the after-tax gap between the two into a Roth account tax-free using the mega backdoor Roth strategy.
Boat Rental Bookkeeping: Boatsetter, GetMyBoat, and the Schedule C/Schedule E Split
Boatsetter and GetMyBoat report gross transaction volume on Form 1099-K, not your net payout, so record the full charter price as revenue and the platform commission as a separate expense — and track bareboat versus captained bookings separately, since adding a captain shifts income from Schedule E to Schedule C self-employment tax.
Buying Machinery at Auction: Cost Basis, Use Tax, and 100% Bonus Depreciation
A $150,000 CNC lathe bought at auction and fully expensed under 100% bonus depreciation can generate roughly $37,500 in first-year tax savings at a 25% effective tax rate, but only if the buyer's premium, sales/use tax, and rigging costs are correctly capitalized into cost basis first.
Solar Farmland Leases: A Landowner's Guide to Rates, Rollback Taxes, and Contract Terms
Solar ground leases on farmland pay $500-$1,200 per acre annually nationally once construction begins, but landowners who skip the decommissioning bond, rollback-tax reimbursement, and escalator clause often lose more than they gain over a 20-to-35-year term.
No Tax on Overtime in 2026: What the New W-2 Box 12 Code TT Requirement Means for Employers
Starting with tax year 2026, employers must separately report qualified overtime compensation on Form W-2 using Box 12, Code TT — but only the FLSA-required premium half of overtime pay qualifies, capped at $12,500 for single filers and $25,000 for joint filers.
Getting an AI Licensing Check as an Author: How to Handle the Split and the Taxes
Authors receiving publisher AI-licensing checks — including payouts from Anthropic's roughly $1.5 billion author settlement — should verify their contract grants those rights, confirm they're getting the Authors Guild-recommended 75-85% split, and report the income on Schedule C as self-employment income, not Schedule E.
Locum Tenens Taxes and Bookkeeping: A Complete Guide for 1099 Clinicians
Locum tenens and travel-healthcare clinicians are 1099 contractors who owe 15.3% self-employment tax, must establish a valid IRS tax home to deduct travel costs, and often file non-resident state returns for every state where they worked.
Program-Related Investments: How Private Foundations Recycle Charitable Capital
Program-related investments let a private foundation count loans, equity stakes, or guarantees toward its mandatory 5% annual payout, then reclaim the capital as it's repaid, but PRIs to non-charitable recipients trigger IRS expenditure-responsibility rules with a 20% excise tax and personal manager penalties for noncompliance.