211 tagged with "Tax Deductions"
Maximize tax deductions and reduce your tax liability legally
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.
De Minimis Safe Harbor: How Small Businesses Expense Equipment Up to $2,500 Without Depreciation
A small business with a written capitalization policy dated before the tax year begins and an annual election attached to its return can deduct tangible property up to $2,500 per item or invoice ($5,000 with an applicable financial statement) under Treas. Reg. §1.263(a)-1(f), skipping depreciation schedules entirely.
Section 199A Rental Real Estate Safe Harbor: How Landlords Log 250 Hours, Avoid the Triple Net Lease Trap, and Lock In the 20% QBI Deduction
Revenue Procedure 2019-38 lets landlords treat rental real estate as a trade or business for the 20% QBI deduction if they log 250 hours of qualifying services, keep contemporaneous records, avoid triple net leases, and file a signed election — now permanent under the 2025 One Big Beautiful Bill Act.
The Section 199A Rental Real Estate Safe Harbor: A Guide for Schedule E Landlords
Rev. Proc. 2019-38 lets landlords claim the 20% QBI deduction if a rental enterprise logs 250+ hours of rental services a year with contemporaneous records and a signed election. Triple net leases and personal-use property are excluded.
Section 461(h) Economic Performance and the Recurring Item Exception: When Accrual-Basis Liabilities Are Actually Deductible
Section 461(h) layers an economic performance test on top of the all-events test, so accrual-basis taxpayers cannot deduct a liability until the underlying activity actually happens. The recurring item exception accelerates deductions for predictable expenses when economic performance occurs within 8½ months of year-end and four specific conditions are met.
HSA vs FSA vs HRA in 2026: The Practical Playbook for Picking, Stacking, and Not Forfeiting Your Health Dollars
A 2026 walk-through of HSA, FSA, and HRA rules with the new contribution limits, the limited-purpose FSA stack that adds up to $7,800 of pre-tax room, and how small employers can use ICHRA and QSEHRA to compete with corporate benefits.