Muhammad CPA & Associates, LLC

If you’re thinking about financing a new vehicle, you may be able to deduct up to $10,000 per year of interest paid. The deduction is available for certain personal auto loans originated after Dec. 31, 2024 — even if you don’t itemize deductions. Modified adjusted gross income (MAGI) limits apply, and only qualifying vehicles assembled in the U.S. are eligible. Before purchasing, consider whether eligibility for the deduction should factor into your vehicle choice. We can help run the numbers. Call us at (833) 557-0057.

Home renovations can improve a residence’s comfort, functionality, aesthetics and resale value. They might also provide tax benefits. You may be able to deduct mortgage interest on debt used to substantially improve your home. Certain improvements can also increase your tax basis, potentially reducing taxable gain when you sell. Medically necessary modifications may qualify as deductible medical expenses, subject to limits. And if you overlooked claiming now-expired credits for qualifying energy-efficient home improvements you made in 2025, an amended return may be worth considering. Call us at (833) 557-0057 to talk taxes before or after a home renovation.

Many tax law changes went into effect this year. So it’s important to evaluate where your business stands — and where it’s headed — before year end. Tax planning opportunities may still be available, but they’ll become more limited as the calendar winds down. Whether you’re considering equipment purchases, compensation strategies, retirement plan contributions or other tax-saving moves, now is the time to look ahead and review your options. Call us at (833) 557-0057 to bring your 2026 tax strategy into focus.

You’ll probably owe tax on your retirement income — how much depends on factors such as the types of retirement accounts you own and your other income sources. In general, retirees should withdraw funds from any taxable accounts first, tax-deferred accounts second and tax-free accounts last. But different withdrawal strategies may benefit you. The important thing is to start planning before you retire. Call us at (833) 557-0057 for help.

Avoid underpayment penalties by staying on top of estimated tax payments and paycheck withholding. If you expect to owe at least $1,000 in taxes after subtracting credits and withholding, quarterly estimated payments may be required. Withholding and estimated payments must generally cover 90% of this year’s tax or 100% of last year’s tax (or 110%, depending on your income). Unsure if you’re on track? Let’s review your situation now to help avoid surprises when you file your 2026 return next year. Call us at (833) 557-0057.

If your C corporation traditionally makes deductible charitable gifts, make sure you know the rules for 2026 donations. Starting Jan. 1, 2026, corporations can only deduct charitable gifts in excess of 1% of the company’s taxable income, with a 10% of income cap. Amounts exceeding the 10% cap can be carried forward — as can amounts that aren’t currently deductible due to the 1% floor — for up to five years. You may want to execute a multiyear charitable deduction strategy if your company’s income varies from year to year. Contact us at (833) 557-0057. We can help by projecting income and other deductions so you can support your community while maximizing long-term tax benefits.

🚨 TAX TIP #1 FOR SMALL BUSINESS OWNERS

One of the biggest mistakes I see as a CPA is mixing personal and business expenses.

It may seem harmless, but it can:

• Make bookkeeping more difficult
• Cause you to miss legitimate tax deductions
• Create unnecessary stress at tax time
• Increase your audit risk

Keeping separate business and personal finances is one of the simplest steps you can take to protect your business.

This is just one of the seven costly tax mistakes I cover in my new guide:

📘 7 Tax Mistakes That Cost Small Businesses Thousands (And How to Fix Them)

If you're a small business owner, freelancer, consultant, or contractor, this guide was written with you in mind.

📥 Download your copy today:
https://qamarcpa.gumroad.com/l/dpdwf

💬 What's your biggest tax or bookkeeping question? Leave it in the comments, and I may answer it in a future post.

If you know another business owner who could benefit from this guide, I'd truly appreciate you sharing this post.

— Qamar-Terri Muhammad, CPA
Muhammad CPA & Associates

📘 NEW RESOURCE FOR SMALL BUSINESS OWNERS

One of the most common things I see as a CPA is small business owners paying more taxes than necessary—not because they're doing anything wrong, but because they don't understand the tax rules or don't have the right systems in place.

That's why Muhammad CPA & Associates created:

7 Tax Mistakes That Cost Small Businesses Thousands (And How to Fix Them)

This practical guide is designed to help business owners:

✔ Avoid common tax mistakes

✔ Maximize legitimate deductions

✔ Improve recordkeeping

✔ Reduce audit risk

✔ Make more informed financial decisions throughout the year

Whether you're a freelancer, consultant, contractor, or established business owner, this guide provides practical information you can begin using immediately.

📥 Download your copy today:

https://qamarcpa.gumroad.com/l/dpdwf

At Muhammad CPA & Associates, our mission is to help business owners build stronger financial foundations through education, organization, and sound tax planning.

If you know another business owner who could benefit from this resource, please share this post.

Qamar-Terri Muhammad, CPA
Founder, Muhammad CPA & Associates

You probably have retirement questions: How much should I save before I quit working? When should I start taking Social Security benefits? Can I retire before Medicare coverage kicks in? What about taxes in retirement? We can provide you with answers based on your individual financial circumstances and retirement goals. Contact us at (833) 557-0057.

As a small business owner, it’s easy to think of a succession plan as involving only two people: you and your successor. But a smooth transition may also require support from managers and other key employees. Communicating thoughtfully about your intentions and progress can help build confidence, reduce uncertainty and keep the business moving forward. Contact us at (833) 557-0057 for help addressing the tax, financial and strategic aspects of your plan.