Victoria Bogdanovich, CPA

Taxpayers Advised They Can Ignore CP53E Notice — After Verifying Error

Taxpayers who aren’t due a refund but received a CP53E notice anyway can ignore the notice after they confirm its validity online, the Taxpayer Advocate Service (TAS) said....

Taxpayers Advised They Can Ignore CP53E Notice — After Verifying Error Taxpayers who aren’t due a refund but received a CP53E notice anyway can ignore the notice after they confirm its validity online, the Taxpayer Advocate Service (TAS) said.

IRS Finalizes Deduction Rules for Tips, Adds Eligible Jobs

The IRS issued final regulations for the new tips deduction (T.D. 10044) under H.R. 1, P.L. 119-21, commonly known as the One Big Beautiful Bill Act, adding three eligible jobs, defining qualified tips, and clarifying some areas....

IRS Finalizes Deduction Rules for Tips, Adds Eligible Jobs The IRS issued final regulations for the new tips deduction (T.D. 10044) under H.R. 1, P.L. 119-21, commonly known as the One Big Beautiful Bill Act, adding three eligible jobs, defining qualified …

IRS Dirty Dozen Adds New Capital Gains Scheme for 2026

The IRS’s 2026 Dirty Dozen list is largely a mix of familiar schemes, from bad tax advice on social media to impersonation attempts, but it does add one new entry: abusive undistributed long‑term capital gains claims....

IRS Dirty Dozen Adds New Capital Gains Scheme for 2026 The IRS’s 2026 Dirty Dozen list is largely a mix of familiar schemes, from bad tax advice on social media to impersonation attempts, but it does add one new entry: abusive undistributed long‑term c…

New Schedule 1-A for Tips, OT, Car Loans, and Senior Deductions Published

The IRS published Schedule 1-A (Form 1040), Additional Deductions, along with updated instructions for Form 1040, U.S. Individual Income Tax Return, that explain how taxpayers can claim the new deductions for tips, overtime, and car loan interest, and the enhanced deduction for seniors....

New Schedule 1-A for Tips, OT, Car Loans, and Senior Deductions Published The IRS published Schedule 1-A (Form 1040), Additional Deductions, along with updated instructions for Form 1040, U.S. Individual Income Tax Return, that explain how taxpayers can claim the new ded…

IRS Issues Higher 2026 Depreciation Limits for Passenger Automobiles

After issuing a decrease last year, the IRS on Tuesday posted slightly higher depreciation limitations for passenger automobiles. These limits are updated annually for inflation, based on the automobile component of the Chained Consumer Price Index for Urban Consumers....

IRS Issues Higher 2026 Depreciation Limits for Passenger Automobiles After issuing a decrease last year, the IRS on Tuesday posted slightly higher depreciation limitations for passenger automobiles. These limits are updated annually for inflation, based on the autom…

Practical Tax Advice for Businesses as a Result of the OBBBA – 7

The QBI deduction lives on The highest federal corporate tax rate for 2025 is 21%, compared with the top federal individual tax rate of 37%. This disparity is somewhat mitigated by the Sec. 199A qualified business income (QBI) deduction introduced by the TCJA, which allows for a deduction of up to 20% of QBI for taxpayers other than C corporations (e.g., S corporations, partnerships, and sole proprietorships). ...

Practical Tax Advice for Businesses as a Result of the OBBBA – 7 The QBI deduction lives on The highest federal corporate tax rate for 2025 is 21%, compared with the top federal individual tax rate of 37%. This disparity is somewhat mitigated by the Sec. 199A qu…

Practical Tax Advice for Businesses as a Result of the OBBBA – 6

Qualified production property Finally, of note for maximizing depreciation, the act adds Sec. 168(n), which establishes a new category of property eligible for 100% bonus depreciation — qualified production property (QPP). The new provision offers a significant tax benefit to taxpayers investing in qualified manufacturing, production, or refining facilities in the United States....

Practical Tax Advice for Businesses as a Result of the OBBBA – 6 Qualified production property Finally, of note for maximizing depreciation, the act adds Sec. 168(n), which establishes a new category of property eligible for 100% bonus depreciation — qualified p…

Practical Tax Advice for Businesses as a Result of the OBBBA – 5

Comparing the provisions for tax planning The act expanded the Sec. 179 and bonus depreciation provisions to stimulate economic growth and encourage business investment. The modifications to both provisions can provide significant tax savings. At first glance, both provisions appear similar, as each allows for an immediate deduction for capital assets in the year of acquisition. However, these two tax benefits can be used together in the same year, providing taxpayers with additional opportunities to optimize their deductions....

Practical Tax Advice for Businesses as a Result of the OBBBA – 5 Comparing the provisions for tax planning The act expanded the Sec. 179 and bonus depreciation provisions to stimulate economic growth and encourage business investment. The modifications to both p…

Practical Tax Advice for Businesses as a Result of the OBBBA – 4

Take advantage of the revised and accelerated depreciation deductions There are many significant tax planning opportunities regarding the acquisition of capital assets in the act. Specifically, it raised the limit for the Sec. 179 deduction in a given year and reinstated 100% bonus depreciation. A review of the act’s provisions reveals several planning opportunities that may help taxpayers maximize the potential tax benefits of these changes....

Practical Tax Advice for Businesses as a Result of the OBBBA – 4 Take advantage of the revised and accelerated depreciation deductions There are many significant tax planning opportunities regarding the acquisition of capital assets in the act. Specifically, it …

Practical Tax Advice for Businesses as a Result of the OBBBA – 3

Consider the expanded tax benefits for R&D expenses Many businesses spend substantial funds on research and development of products, services, technologies, and processes. Such R&D costs are a common type of operating expenses for a business. R&D offers companies a way to improve how they do business and what they can offer customers. The industrial, technological, health care, and pharmaceutical sectors typically incur the highest degree of R&D expenses....

Practical Tax Advice for Businesses as a Result of the OBBBA – 3 Consider the expanded tax benefits for R&D expenses Many businesses spend substantial funds on research and development of products, services, technologies, and processes. Such R&D costs ar…