https://chadmclamb3.wixsite.com/chadmclambcpa

J. Chad McLamb, CPA, 132 Bexley Way, Clayton, NC (2026)

10/03/2026

Happy weekend ladies and gentlemen!! Today is Part 2 of my mini series that focuses on small businesses cash flow. It’s very important, whether you own a retail business, rental homes, service business or small at home business, to plan for your cash flow and how tough economic times will affect you. If you’ve missed Part 1 of this series, or any of my previous tips, you’re welcome to visit my page at J. Chad McLamb, CPA.

Tax Tip “Cash Flows” Part 2 (10/3/2026)

This week, we’ll focus on:

1) Maintain Cash Reserves

One of the biggest tips many small business owners need to know, given everything going on in the world over the last few years, is the importance of cash reserves.

Businesses go through times where everything goes smoothly and precisely as expected. Then, all of a sudden, the economy goes south and suddenly most businesses are faced with declining revenues and potentially have to face the fact that their doors may close without any indication of when or even how they'd re-open again.

According to one recent study, 17% of small business owners said that they'd have to shut down permanently if they were faced with just a two-month-long revenue loss. This is why cash reserves are critical - they help you prepare for whatever life throws you, regardless of how unexpected it may be.

In other words, wait to spend every extra dollar coming into your business after expenses, and other payments are accounted for. Try to build up as large of a reserve as possible so that if something does happen, you'll at least be able to weather the storm for a while until you come up with a more permanent solution or until economic conditions get better.

2) Monitor Your Receivables

To reevaluate how devastating a late payment can be, another one of the most significant sources of cash flow problems touches on the same idea, albeit from a different perspective: your accounts receivable status.

Simply put, accounts receivable refers to the money you are being paid by your customers (either standard consumers who purchase a product or service or other businesses) in exchange for something of value. For example, if you're a business that sells a product to other companies, you likely send out invoices regularly to those customers. That represents money you are owed, but the longer those invoices go unpaid, the more likely you are to wind up in a decidedly negative cash flow position.

Not only is this a common problem that many businesses face, but it's also one that is, unfortunately, getting worse. One survey conducted showed that for the previous two years, small business owners reported that their rate of outstanding receivables increased a massive 81%.

You can take a few essential steps to help prevent this from becoming a significant cash flow issue for your small business. First, make sure that you're closely following all outstanding invoices in the first place. You can only collect on invoices you know were sent in the first place. You need a system that clearly outlines who owes what amount of money, when those invoices are due, and who has paid and hasn't.

Likewise, you could offer some pricing discounts or other incentives to entice certain people who may make regular late payments. For example, if the invoice is paid immediately, you could provide a deal for a certain percentage. Or a similar reduction in prices if the invoice is paid in cash. Yes, you'll lose a bit of money from offering a discount, but you'll avoid having to wait for indefinite amounts of time to gain access to the money you are owed. Pay attention to payment terms like this as far as cash flow is concerned.

In final part of this series next week, we will focus on keeping control of your expenses and working with a financial professional during an economic downturn.

In the meantime, in you have any other questions or topics you’d like me to discuss, feel free to reach out. My contact information is on my page or on my website (linked below).

Thank you for your time and have a great rest of your weekend!!

Chad

chadmclamb3.wixsite.com/chadmclambcpa

**New website coming soon!!**

J. Chad McLamb, CPA provides trusted, affordable and personalized accounting services to a broad range of clients across the triangle area. As your Certified Public Accountant, I’m here to ensure that all of your financial decisions are made carefully and with your best interests in mind. Whatever...

09/27/2026

Happy fall guys and gals!! I’m going to start a 3-part mini series that focuses on small businesses cash flows. It’s very important, whether you own a retail business, rental homes, service business or small at-home business, to plan for your cash flow in the face of rising costs all around us. If you’ve missed any of my previous tips, you’re welcome to visit my page at J. Chad McLamb, CPA.

Business Cash Flows (Part 1) 9/26/26

What Do Rising Costs to Operate a Business Mean for the Cash Flow?

If you had to make a list of some of the most significant issues plaguing small business owners regularly, cashflow problems would undoubtedly be right at the top.

Cash flow is more than just the money coming into and out of your business. It represents your ability to capitalize on opportunities as a business owner as opposed to watching them pass you by because you need more cash on hand. It's about ensuring you have the cash inflow to pay your for supplies, or even employees, on time. It's about understanding how you will pay vendors and other suppliers to get your products and services into the hands of the people who need them on time. The list goes on and on.

Based on this, it should not be surprising that an estimated 82% of all small businesses close because of a significant cash flow problems. When you also consider that the number of small businesses that fail to make it beyond their fifth anniversary is estimated to be 48%, it's easy to see why this is one critical aspect of being a business owner that you want to look into.

To be clear, none of this is to say that if you manage to avoid significant cash flow problems, you're guaranteed to run a successful business for years to come. Unfortunately, the situation is a lot more malleable than that - there are still a lot of other variables that need to be accounted for. Proper cash flow forecasting is imperative to avoid many major mistakes new entrepreneurs commonly make. It will also help prevent disruption and can contribute to your business's ability to scale and grow larger over time.

Thankfully, getting a handle on cash flow problems as a small business owner is more accessible than one might assume. However, it would help if you kept several crucial things in mind along the way.

**The Ins and Outs of Cash Flow: Breaking Things Down**

First, it's essential to get a handle on just what is meant by the term cash flow in the first place. Generally, it can be separated into two categories: cash inflow and cash outflow.

Cash inflow refers to the amount of money coming into your business at any time. This is typically represented by the cash generated when you sell your products or services. Note that only some dollars that come into the organization are revenue. Mind you - you still have expenses and things of that nature to account for.

As the name suggests, cash outflow is the money going out of your business. This includes not just payments to people like your employees but also payments to vendors and other suppliers. Regular expenses and debt payments would also fall under the cash outflow umbrella.

These two concepts are closely related, and a cash flow problem in one area will immediately impact the other. If you start making late payments after payment to your suppliers, your relationship can be damaged, and you may find it challenging to find people to work with in the future. Making a late credit card or other debt payment could hurt your ability to borrow (and negatively impact your credit rating). It can even harm your reputation not just with your customers but with your employees as well.

This is why there are no such things as "small" cash flow problems." What seems like a minor issue will soon snowball into something far bigger if left unchecked, which is why you need a stable foundation to avoid these types of situations altogether.

**Pay Attention to How (and Why) You're Borrowing**

One of the most important ways to ensure you have a handle on your cash flow situation is to gain as much insight as possible into the money you're borrowing - and why.

An entrepreneur rarely has the money to build an entire enterprise on their own without taking out additional debt like small business loans. Many even use business credit cards and similar borrowing techniques to get up and running and ensure that things are running as efficiently as possible.

You need to pay careful attention to borrowing too much or borrowing from sources that are too expensive. If you have too many loans with a high-interest rate, you may be paying more each month than that money is bringing into your business. If you miss a payment or two, those interest rates could increase even further - causing you to take on additional debt to stay afloat.

Refinance any high-interest-rate credit cards and similar loans to take advantage of more favorable terms and conditions. Likewise, only borrow additional money if you're already strapped, or it just doesn't make long-term financial sense. Remember, debt can be good but only if it potentially ADDS to your bottom line. Be careful with debt. You have to have a “why that makes sense” before borrowing.

Next week in this series we will focus on maintaining cash reserves and monitoring receivables during a period of high inflation and rising operating costs.

In the meantime, in you have any other questions or topics you’d like me to discuss, feel free to reach out. My contact information is on my page or on my website (linked below).

Thank you for your time and have a great weekend!!

Chad

chadmclamb3.wixsite.com/chadmclambcpa

** New website coming soon! **

J. Chad McLamb, CPA provides trusted, affordable and personalized accounting services to a broad range of clients across the triangle area. As your Certified Public Accountant, I’m here to ensure that all of your financial decisions are made carefully and with your best interests in mind. Whatever...

09/19/2026

Hey yall!! I hope all is well for you this weekend.

We’re back for the final week of this series where I want to focus on some tax planning tips and strategies now that we’re a little past the midpoint of 2026. For individuals, tax tax planning can be essential if you’ve changed jobs, changed marital status, owed tax the previous year, or simply just want to have an idea of what your tax situation looks like for 2026. For businesses, tax planning is essential to ensure deductions are maximized, assets are properly recorded and your financials are analyzed to put you in the best situation come tax time. Many times, tax planning saves taxpayers and businesses hundreds or thousands of dollars more than the cost of the services. Don’t hesitate to contact your CPA today to get your individual or business tax planning process started.

As always, if you’d like to see Parts 1 - 5 of this series, or any of my previous tips, visit our page at J. Chad McLamb, CPA.

This week, I wanted to focus on a few mid-year individual and business tax planning ideas that might be beneficial. These tips could potentially save you thousands of dollars on your 2026 taxes.

Part 6 (of 6)

Tax tip 9/19/2026

Here are 5 (2 individual and 3 business) tax planning strategies to consider. Plus, we have some BONUS tips at the end!! 😁

INDIVIDUAL

1. Be Generous

Make gifts sheltered by the annual gift tax exclusion, such as educational, medical, or political gifts, before year-end to lessen gift and estate taxes. The exclusion applies to gifts of up to $19,000 in 2026 ($38,000 for married couples) made to each of an unlimited number of individuals, but you cannot carry over unused exclusions from one year to the next. In order to qualify you must give the funds directly, and you do not get an income tax deduction for gifts to relatives. Any unused amount is gone forever. You can’t give extra next year to make up for it. Annual gifts over the exclusion amount will trigger filing of a gift tax return for the year. But no gift tax will be due unless your total lifetime gifts exceed $15 million dollars. If you’re thinking of exceeding the lifetime gift, please think of me!! 🤣

2. Realize Losses on Stock

You can take losses on stock while substantially preserving your investment position. There are several ways this can be done. For example, you can sell the original holding, and then buy back the same securities at least 31 days later. Or, if you own a fund (such as an index fund), you can sell it, and buy a similar fund right away while still claiming the loss. This works great with index funds, because as long as you buy a fund of the same index, it contains all the same securities.

BUSINESS

1. Invest in Professional Development

Did you know investing in professional development can have tax benefits for your business?
You can deduct the costs of continuing your education, including tuition, books, and any other required materials, as business expenses.
So if you’ve been thinking about enrolling in a course or going back to school, keep in mind that your investment can have both personal and financial benefits.

2. Claim Business Loan Interest

Generally speaking, interest paid on business loans is a tax deductible business expense.
To qualify, the loan must be used for business purposes alone.
You should also keep detailed records showing how the loan funds are used within your business.

3. Review Your Accounting Method

Make sure you’re using the best accounting method for your business.
Businesses can use either the cash or accrual accounting method. The cash method records transactions when cash enters or leaves the business.
The accrual method means revenue is recognized when it is earned, regardless of when payment is received. This means sales are recorded when products or services are delivered, not necessarily when cash is received.
While the cash accounting method is more simple and straightforward, the accrual method gives a more accurate picture of your business’s financial health.
To determine which method is best for your unique situation, we recommend working with a tax and accounting professional.

BONUS BUSINESS TIPS:

B1: Send Holiday & Thank You Gifts to Your Clients

Show your star clients some love and claim another deductible with a holiday gift. The current IRS limit is $25 per client.
While some people see this as super low (it is because it hasn’t been adjusted since the 1940s and would be equal to $2,500 today!). You can still send small gifts that will thrill your clients nonetheless.
Not sure what to send?
How about gift cards to restaurants or retail shops. Also, gifts like candles, pens, magnets, soaps, and other small items to gift to your clients as a “thank you”.
The price stays within the required range and clients love it!

B2: Utilize the Qualified Business Income (QBI) Deduction

The QBI deduction lets certain small businesses slash their tax bill by up to 20% of their qualified business income.
To qualify, your taxable income earned from your small business can’t exceed certain threshold amounts ($201,750 for single filers and $403,500 for married filers in 2026). But even if you’re above those income thresholds, you might still qualify for a partial deduction, depending on factors like wages
paid by your business and the value of your business assets.
By taking advantage of the QBI deduction, eligible small business owners can reduce their taxable income and lower their overall tax liability.

B3: Hire a Tax Professional

Fees spent on professionals like CPA’s (like yours truly), lawyers, and financial planners are considered ordinary and necessary by the IRS. You can reduce your taxable business income by claiming these deductions on your business taxes.

If you have any questions about this tip or would like me to discuss specific topics in the future, please let me know.

Thank you so much for your time. See y'all next week for another tip as we rapidly approach the fall. This is tax planning and tax strategy season!

We hope you have a great week!

J. Chad McLamb, CPA

chadmclamb3.wixsite.com/chadmclambcpa

COMING SOON…New website!

J. Chad McLamb, CPA provides trusted, affordable and personalized accounting services to a broad range of clients across the triangle area. As your Certified Public Accountant, I’m here to ensure that all of your financial decisions are made carefully and with your best interests in mind. Whatever...

09/13/2026

Hello everybody!! I hope this weekend is well for you so far.

I’ve been on a 3-week hiatus but I’m now back for week 5 (of 6) where I want to focus on some tax planning tips and strategies now that we’re a little past the midpoint of 2026. For individuals, tax tax planning can be essential if you’ve changed jobs, changed marital status, owed tax the previous year, or simply just want to have an idea of what your tax situation looks like for 2026. For businesses, tax planning is essential to ensure deductions are maximized, assets are properly recorded and your financials are analyzed to put you in the best situation come tax time. Many times, tax planning saves taxpayers and businesses hundreds or thousands of dollars more than the cost of the services. Don’t hesitate to contact your CPA today to get your individual or business tax planning process started.

As always, if you’d like to see Parts 1, 2, 3 and 4 of this series, or any of my previous tips, visit our page at J. Chad McLamb, CPA.

This week, I wanted to focus on a few mid-year individual and business tax planning ideas that might be beneficial. These tips could potentially save you thousands of dollars on your 2026 taxes.

Part 5 (of 6)

Tax tip 9/12/2026

Here are 4 (1 individual and 3 business) tax planning strategies to consider.

INDIVIDUAL

1. Family Tax Credit

The family tax credit created under the TCJA remains unchanged for 2026. It is a non-refundable credit of $500 for each person the taxpayer could have claimed as a dependent under prior law but who is now a Qualifying Child (e.g., a “Qualifying Relative” as defined under prior law). This $500 credit is added to any other child tax credits and the total credits begin phasing out once a taxpayer’s MAGI exceeds $400,000 on a joint return or $200,000 for singles. Furthermore, the reduction is $50 for each $1,000—or fraction of $1,000—over the thresholds.

BUSINESS

1. Make Sure Your Business Structure Still Makes Sense

Many small businesses are initially formed as single-member LLC’s. But as your business grows, it can sometimes be financially beneficial to recategorize your business structure, most likely to an LLC electing S-Corp status.
S-Corp status doesn’t change your core business structure. Rather, it changes the way your business is taxed by allowing “pass-through” taxation in which income “flows through” the business to be taxed on the individual level.
This taxation method avoids double taxation, a situation in which a business is taxed on its overall income, then income passed on to shareholders is taxed at the individual level as well.

2. Split Business Income With Family Members

This strategy involves redistributing income from a higher earning family member to another person who is in a lower tax bracket. The idea is to “offload” income to your lower-earning family members who are in a lower tax bracket while lowering your own tax burden at the same time.
This person could be your spouse, your child, or extended family members.
However, tax laws vary, so the specifics of using this strategy, if it’s an option, will depend on your tax jurisdiction. (Another reason we always recommend working with a qualified tax professional!)

3. Research Tax Credits

Explore available tax credits that your business may be eligible for. Tax credits directly reduce your tax liability, providing a dollar-for-dollar reduction in taxes owed.
Look into credits for various purposes such as research and development, health care, energy efficiency (see below), or startup costs.
Researching and utilizing these credits can significantly lower your overall tax bill.

BONUS: End-of-year financial statements, including the balance sheet and income statement, provide valuable insights into the financial health of your business. This information is essential for financial planning, budgeting, and making informed business decisions as you transition to a new year. It’s a good idea to schedule a consultation with your CPA or financial advisor to review your business financial statements to decide if any year end decisions need to be made to improve your tax situation.

If you have any questions about this tip or would like me to discuss specific topics in the future, please let me know.

Thank you so much for your time. See y'all next week for the final part (6) of the individual and business tax planning tips for 2026!

We hope you have a great week!

J. Chad McLamb, CPA

chadmclamb3.wixsite.com/chadmclambcpa

Coming Soon…New website!!

J. Chad McLamb, CPA provides trusted, affordable and personalized accounting services to a broad range of clients across the triangle area. As your Certified Public Accountant, I’m here to ensure that all of your financial decisions are made carefully and with your best interests in mind. Whatever...

08/23/2026

Happy weekend everyone!! I hope everything is going well for you.

We’re back for week 4 (of 6) where I want to focus on some tax planning tips and strategies now that we’re a little past the midpoint of 2026. For individuals, tax tax planning can be essential if you’ve changed jobs, changed marital status, owed tax the previous year, or simply just want to have an idea of what your tax situation looks like for 2026. For businesses, tax planning is essential to ensure deductions are maximized, assets are properly recorded and your financials are analyzed to put you in the best situation come tax time. Many times, tax planning saves taxpayers and businesses hundreds or thousands of dollars more than the cost of the services. Don’t hesitate to contact your CPA today to get your individual or business tax planning process started.

As always, if you’d like to see Parts 1, 2 and 3 of this series, or any of my previous tips, visit our page at J. Chad McLamb, CPA.

This week, I wanted to focus on a few mid-year individual and business tax planning ideas that might be beneficial. These tips could potentially save you thousands of dollars on your 2026 taxes.

Part 4 (of 6)

Tax tip 8/22/2026

August isn’t just for the hot weather, beach trips and the beginning of college football season. It’s also a good time to think about ways to cut your 2026 individual and business tax bill. Here are 6 (3 individual and 3 business) tax planning strategies to consider.

INDIVIDUAL

1. Consider Year-End Donations

You can accelerate contributions planned for 2027 into 2026, but you must charge them or mail the checks by December 31st to ensure a write-off. Try to make your donations with appreciated stock are ones that you’ve owned for over a year. This way, you can deduct the full value and never pay capital gains tax on the appreciation.

2. Check Your Health Flexible Spending Account (FSA)

You must clean it out by December 31 if your employer hasn’t implemented the 2 1/2-month grace period or the $680 carryover rule. Otherwise, you will forfeit any money left in your account. Also, consider electing to contribute to a health FSA for 2026. You can contribute up to $3,400 to your employer’s health FSA to cover out-of-pocket medical expenses. Amounts contributed to an FSA escape federal income tax as well as payroll taxes.

3. Child Tax Credit

For 2026, the child credit for each “Qualifying Child” who had not reached age 17 by the end of the tax year is $2,200. The income phase-out thresholds remain unchanged and begin phasing out as the individual’s modified adjusted gross income (MAGI) exceeds $400,000 on a joint return and $200,000 for all other returns.

The refundable portion of the child credit also remains at $1,700. A “refundable” credit generally means to the extent the credit exceeds the taxes you would otherwise owe with your individual income tax return without the credit, the IRS will refund the excess to you.

BUSINESS

1. Establish Benefit Plans for Your Employees

Want to attract and retain great employees while also lowering your overall tax burden?

Offer benefit plans!

Here are some of the common employee benefit plans offered by some small businesses:

* Health insurance: While not a direct tax deduction, some small businesses may qualify for a tax credit for offering health insurance to employees.
* Life insurance: Some employer-sponsored life insurance plans can be tax-deductible.
* Retirement plans: Employer contributions to a traditional 401(k) are tax-deductible for the business. Additionally, contributions to a Simple IRA or SEP IRA are tax-deductible for the employer.
* Commuter benefits: Providing commuter benefits, such as parking passes or public transit reimbursement can be tax-deductible to your business.

2. Donate Appreciated Property

Donating appreciated property to a qualified charity can lower your business’s tax bill. Here’s how it works:
When assets, like stock, are donated to a qualified charity, the deduction is equal to the current fair market value of the property, not what you paid for it.
So you could have a $10 stock you purchased worth $1,000 today that would give you a $1,000 deduction vs the $10 you originally spent on it.
Just make sure you keep meticulous records of any donations you make and that you’re aware of available deduction limitations in a tax year.

3. File Your End-Of-Year Tax Forms

Although your actual business tax forms aren’t required to be filed until the tax deadline in April, some relevant forms should be filed by the end of the year for optimal tax savings.
The specific forms filed will depend on your business structure and whether or not you have employees, but here are some of the most common ones filed (for example by coaches and consultants):

* Form W-2: If your business has employees, you need to provide them with Form W-2, reporting their wages, tips, and other compensation, as well as taxes withheld.
* Form 1040 Schedule C: Sole proprietors and single-member LLCs typically use this form to report business income and expenses. It’s attached to the owner’s personal income tax return (Form 1040).
* Form 1099-MISC: If your business paid $600 or more to a contractor, freelancer, or other non-employee during the year, you need to issue them a Form 1099-MISC to report the payments.
* Form 941: Also known as quarterly tax payments, small business owners must file Form 941 quarterly to report and pay estimated income taxes, Social Security tax, and Medicare tax.

BONUS: End-of-year financial statements, including the balance sheet and income statement, provide valuable insights into the financial health of your business. This information is essential for financial planning, budgeting, and making informed business decisions as you transition to a new year. It’s a good idea to schedule a consultation with your CPA or financial advisor to review your business financial statements to decide if any year end decisions need to be made to improve your tax situation.

If you have any questions about this tip or would like me to discuss specific topics in the future, please let me know.

Thank you so much for your time. See y'all next week for part 5 of individual and business tax planning tips for 2026!

We hope you have a great week!

J. Chad McLamb, CPA

J. Chad McLamb, CPA provides trusted, affordable and personalized accounting services to a broad range of clients across the triangle area. As your Certified Public Accountant, I’m here to ensure that all of your financial decisions are made carefully and with your best interests in mind. Whatever...

08/15/2026

Happy weekend everyone!! I hope everything is going well for you.

We’re back for week 3 of 6 where I want to focus on some tax planning tips and strategies now that we’re a little past the midpoint of 2026. For individuals, tax planning can be essential if you’ve changed jobs, changed marital status, owed tax the previous year, or simply just want to have an idea of what your tax situation looks like for 2026. For businesses, tax planning is essential to ensure deductions are maximized, assets are properly recorded and your financials are analyzed to put you in the best situation come tax time. Many times, tax planning saves taxpayers and businesses hundreds or thousands of dollars more than the cost of the services. Don’t hesitate to contact your CPA today to get your individual or business tax planning process started.

As always, if you’d like to see Parts 1 and 2 of this series, or any of my previous tips, visit our page at J. Chad McLamb, CPA.

This week, I wanted to focus on a few mid-year individual and business tax planning ideas that might be beneficial. These tips could potentially save you thousands of dollars on your 2026 taxes.

Part 3 (of 6)

Tax tip 8/15/2026

August isn’t just for the beginning of the college football season. It’s also a good time to think about ways to cut your 2026 individual and business tax bill. Here are 6 (3 individual and 3 business) tax planning strategies to consider.

INDIVIDUAL

1. Convert Traditional IRA to Roth IRA

If your traditional IRA has dropped in value or you expect to pay higher federal income tax rates in future years, you might want to consider converting all or part of your traditional IRA balance into a Roth IRA. Here’s why: If you convert, it will trigger a current tax hit on the amount you convert. But, with your traditional IRA balance at a depressed level (and possibly your overall income too) the tax hit will be less. After the conversion, all the income and gains that accumulate in your Roth IRA, and all withdrawals after you reach age 59 1/2, will be totally free of any federal taxes—assuming you meet the tax-free withdrawal rules. In contrast, future withdrawals from a traditional IRA could be hit with tax rates that are higher than today’s rates.

Of course, conversion is not a no-brainer. You have to be satisfied that paying the upfront conversion tax bill makes sense in your circumstance. In particular, converting a big account all at once could push you into higher tax brackets, which would not be good. You must also make assumptions about future tax rates, how long you will leave the account untouched, the rate of return earned on your Roth IRA investments, and so forth. If the Roth IRA conversion idea intrigues you, contact your CPA for a full analysis of the tax consequences.

2. Retirement Account Contributions

You may want to consider increasing contributions to your Roth, traditional IRA, or other retirement savings account. The table below provides information on the contribution limits for 2026, **which can be made through April 15, 2027.**

— Maximum IRA contribution (traditional or Roth): $7,500
— Maximum IRA contribution if age 50+: $8,600
— Maximum 401(k) salary-deferral contribution: $24,500
— Maximum 401(k) contribution if age 50-59 and 64+: $32,500
— Maximum 401(k) contribution if age 60-63: $35,750
— Maximum 403 (b) salary-deferral contribution: $24,500
— Maximum 403 (b) contribution if age 50-59 and 64+: $32,500
— Maximum 403 (b) contribution if age 60-63: $35,750
— Maximum SEP account contribution: $72,000 or 25% of eligible employee compensation
— Maximum profit-sharing
account contribution: $72,000 or 100% of eligible employee compensation
— Maximum SIMPLE IRA salary-deferral contribution: $17,000
— Maximum SIMPLE
contribution if age 50-59 and 64+: $21,000
— Maximum SIMPLE
contribution if age 60-63: $22,250

3. Increased Standard Deduction

In 2026 the Standard Deduction increased to the following levels:

— Joint Return – $32,200;
— Single – $16,100;
— Head of Household – $24,150;
— Married Filing Separately - $16,100;
— Qualifying Surviving Spouse - $32,200.

The increased standard deduction, combined with changes to Itemized Deductions, may make it difficult to itemize going forward. You may want to consider bunching two years of anticipated charitable contributions into one year. Alternatively, you can consider setting up a Donor Advised Fund GS1 into which you can make tax deductible charitable contributions and can direct the funds to your specific charities over the course of time.

BUSINESS

1. Vehicle Write-Offs and Upgrades

Do you sometimes use your vehicle for business purposes? If so, you can deduct a percentage of your vehicle ownership and maintenance.
If your vehicle is used 100% for your business, you can deduct the entire cost of ownership and maintenance.
Cost of ownership and maintenance can include things like vehicle depreciation, gas, oil changes and other maintenance, repairs, insurance, registration fees, lease payments, loan interest, and tolls.
Just remember that proper documentation of mileage is required to take any vehicle deductions for your business.

2. Take Advantage of Accelerated Depreciation

Some business purchases can qualify for accelerated depreciation, such as bonus depreciation and Section 179.
Here’s how it works: instead of spreading out depreciation deductions over several years, accelerated depreciation lets you claim a large expense on your taxes in the same year you make the purchase.
Say you buy a new Macbook for your business. You could claim depreciation of the computer over the course of its “useful life” as defined by the IRS. Or you could write-off 100% of your purchase in a single tax year, keeping more hard-earned money in your business.
Current bonus depreciation has reverted to 100% because the Taxpayer Relief for American Families and Workers Act has been signed into law.
Section 179 allows qualifying property to be depreciated up to 100% in its first-year of service subject to some exceptions.

3. Revisit Your Retirement Plan

Even if you’re already investing in tax-advantaged retirement accounts, revisiting your strategy from time-to-time can ensure you’re gaining the maximum benefit.
Here are some retirement plan options that may help you save on business taxes:
— Solo 401(k) or Self-Employed 401(k): Designed for self-employed people without employees, these retirement accounts allow tax-deductible contributions with high contribution limits.
— Traditional IRA: Although not a direct method for saving on business taxes, traditional IRA contributions are tax deductible from your personal income tax in the year you make them.
— Roth IRA: Self-employed business owners can contribute to an IRA up to a certain amount depending on their income levels.
— Health Savings Account (HSA): While not a traditional retirement plan, contributing to an HSA can provide tax advantages. Contributions are tax-deductible, grow tax-free, and withdrawals for qualified medical expenses are tax-free.
**Before choosing a retirement plan, consider consulting with a financial advisor or tax professional to determine which plan aligns best with your business goals and financial situation.

If you have any questions about this tip or would like me to discuss specific topics in the future, please let me know.

Thank you so much for your time. See y'all next week for part 4 of individual and business tax planning tips for 2026!

We hope you have a great week!

J. Chad McLamb, CPA

J. Chad McLamb, CPA provides trusted, affordable and personalized accounting services to a broad range of clients across the triangle area. As your Certified Public Accountant, I’m here to ensure that all of your financial decisions are made carefully and with your best interests in mind. Whatever...

J. Chad McLamb, CPA

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