The Burns Firm, Ltd.

The “kiddie tax” can apply long after childhood: Many parents don’t know that the “kiddie tax” exists. Others assume it affects only minor children. But it also can apply to full-time students through age 23 and 18-year-olds even if they aren’t full-time students. When it applies, the child’s unearned income in excess of $2,700 (for 2026) is taxed at the parent’s tax rate, if higher.

If your child has investment income from custodial accounts, consider reviewing the types of investments in those accounts. Growth-oriented investments that generate little current income may help reduce exposure to the kiddie tax until your child is old enough that the tax no longer applies.
If you’d like help evaluating your family’s situation, contact us. https://www.theburnsfirm.com/about-us/blog/

Tax Planning After the Loss of a Spouse: The death of a spouse is, first and foremost, a profound personal loss with intense emotional and psychological impact. But it can also bring about major financial changes at a difficult time.

One change that many people don't think about is that the surviving spouse may eventually face a higher tax burden. A thoughtful plan, made with the help of a professional tax advisor, can help preserve more after-tax income, reduce avoidable taxes on retirement accounts and ease the adjustment to a new financial reality. https://www.theburnsfirm.com/about-us/blog/

Should you make after-tax, non-Roth 401(k) contributions? If you participate in a company 401(k) plan, there may be an option to add to your retirement nest egg that you’re not aware of: after-tax, non-Roth contributions. These contributions aren’t subject to the annual elective deferral limit ($24,500 for 2026, plus catch-up contributions if you’re age 50 or older). So, if your plan allows, you can make them after you’ve maxed out your deferral limit, including catch-up contributions, if applicable. They create tax basis in your account that can eventually be withdrawn tax-free. And growth on the money won’t be taxed until you start taking withdrawals. We can review your situation and help you determine whether you might benefit. https://www.theburnsfirm.com/about-us/blog/

Protect Yourself From Fraudsters Impersonating the IRS and Other Tax Scams: Scammers continue to target taxpayers through email, text messages, phone calls and regular mail. They often try to create urgency or fear to trick victims into sharing sensitive information or sending money.

Remember, the IRS will never contact you by email or text about a tax bill or refund. It also won’t demand immediate payment over the phone. Most IRS communications are sent through regular mail — though fraudsters may send fake IRS notices by mail, often including QR codes.

Don’t click on links, open attachments or scan QR codes from unknown senders that might direct you to fraudulent websites designed to steal personal or financial information. Contact us if you have questions. https://www.theburnsfirm.com/about-us/blog/

What’s a “small business,” and why does it matter? Certain “small businesses” may qualify for several valuable tax breaks. But different tax provisions use different size tests.
For instance, a gross receipts test is used to determine eligibility for cash accounting, simplified inventory rules, the completed contract method, relief from UNICAP requirements and exemption from the business interest deduction limitation. This threshold is adjusted for inflation. For 2026, your business may be eligible if its average annual gross receipts for the prior three-year period were $32 million or less.
Contact us to help evaluate your eligibility for these and other tax-saving opportunities based on your business’s structure and operations. https://www.theburnsfirm.com/about-us/blog/

Claiming the QBI Deduction for Rental Real Estate: The One Big Beautiful Bill Act (OBBBA), enacted in 2025, made permanent the federal income tax deduction for qualified business income (QBI). This break was originally introduced under the Tax Cuts and Jobs Act. Many business owners have been curious about whether and how this tax break may apply to their rental real estate activities. If you count yourself among them, here's the scoop. https://www.theburnsfirm.com/about-us/blog/

If you’re thinking about relocating, don’t choose a new state based only on climate, cost of living or proximity to family. Also review the tax implications.

For example, some states don’t have a personal income tax, and some that do have one offer tax breaks for pension payments, retirement plan distributions and Social Security payments. Also be aware that a state with no personal income tax may impose high property, sales or estate taxes.

Before making a move, contact us to review the potential income, property, sales and estate tax implications. We can help you minimize potential negative tax consequences and make the most of any tax advantages offered by the new state. https://www.theburnsfirm.com/about-us/blog/

Does your business own commercial real property? A closer look at your building costs could change how quickly you can deduct those expenses.

Business buildings generally have a 39-year depreciation period. A cost segregation study separates various building components, such as electrical systems and flooring. It then allows these components to be reclassified and deducted over a much shorter period, thereby deferring taxes and boosting cash flow. Recent tax law changes enhanced these benefits by increasing first-year depreciation write-offs.

Contact us to discuss whether this strategy is right for your business. We can determine reasonable cost allocations to help withstand IRS scrutiny. https://www.theburnsfirm.com/about-us/blog/

Is Your Business Eligible for Tariff Refunds? The U.S. Supreme Court recently ruled that certain tariffs imposed under the International Emergency Economic Powers Act (IEEPA) were illegal. As a result, U.S. Customs and Border Protection (CBP) has begun implementing a process to issue refunds to affected businesses. For some companies, this may provide an opportunity to recover cash from tariffs paid on imports over the past year. https://www.theburnsfirm.com/about-us/blog/

Tax Mitigation Strategies When Rebalancing Your Investment Portfolio: Rebalancing your investment portfolio periodically is necessary to maintain your desired asset allocation, which can help manage risk and achieve your goals. Here are some tips for tax-smart rebalancing. https://www.theburnsfirm.com/about-us/blog/