Pangea Strategic Partners Inc

Grabbing lunch with a client doesn’t just build rapport. It can also trim your tax bill. Under federal tax law, you can generally deduct 50% of qualifying business meal costs. Whether you're dining with clients, partners or employees, these deductions can reduce your taxable income. Keep detailed records of the expenses, including receipts. Document the business purpose of each meal and the business relationship of the people you dine with. Contact us at (469) 453-1699 with any questions about this deduction.

Most tax pain isn't caused by the tax code. It's caused by the calendar. 📅

In the next 30 days, two dates decide whether your fall is calm or expensive. Let me walk you through both, the way I'd teach it in a classroom. 🎓

🔴 SEPTEMBER 15 — THE BUSINESS DEADLINE (8 days away)
Partnership, LLC, or S corporation on extension? This is the final day for your 2025 return. No second extension. Your Q3 estimated payment is due the same day.
Miss it and the penalty is $255 per owner, per month. A three-partner LLC that files two months late owes $1,530 before a dollar of tax is counted. Yes, even if the business owes no tax at all.

🟠 OCTOBER 15 — THE PERSONAL DEADLINE
Last day for extended 2025 personal returns and C corporations.
The sentence I say more than any other: an extension is time to FILE, not time to PAY. Interest has been running at 7% since April. Miss Oct 15 without filing and the penalty jumps to 5% per month. Not filing costs 10x more than not paying. If you can't pay, file anyway.

💡 THE OPPORTUNITY HIDING IN OCTOBER
Self-employed and on extension? You can still fund a 2025 SEP-IRA by October 15 and deduct it on your 2025 return, up to $70,000. Very few deductions let you lower LAST year's tax bill in October. This is one of them.

🎓 LESSON OF THE WEEK: THE SAFE HARBOR
Pay 100% of last year's tax (110% if your income was over $150,000) in four quarterly payments and you owe no underpayment penalty. Last year's number is known. This year's is a guess. Plan on the one you know.
S corp owners: you can fix a missed estimate by raising your W-2 withholding in Q4. The IRS treats withholding as paid evenly all year.

🆕 WHAT'S NEW THIS YEAR
✔ 100% bonus depreciation is back, permanently
✔ Section 179 expensing rises to $2.5 million
✔ The 20% QBI deduction is now permanent
✔ 1099-NEC threshold rises to $2,000, but only for 2026 payments. This January still uses $600.

🤠 TEXAS OWNERS
Franchise tax report due November 16. Even if you owe nothing, the Public Information Report is still required. Skipping it is the fastest way a healthy Texas business loses good standing.

✅ YOUR HOMEWORK THIS WEEK
1️⃣ Confirm every extended business return is filed by Sept 15
2️⃣ Make your Q3 estimated payment at IRS.gov/payments
3️⃣ Start gathering your 2025 personal documents
4️⃣ Decide on a 2025 SEP-IRA before Oct 15
5️⃣ Put Nov 16 on the calendar for the Texas franchise report

This is Issue #1 of Tax Talk, a weekly newsletter and podcast for entrepreneurs who want to understand their taxes, not just survive them. Episode 1 of Tax Talk with Professor Zabeti, CPA arrives on YouTube this week. Follow this page so you don't miss it. 🔔

Have a question? Drop it in the comments. The best ones become episodes. 👇

— Professor Zabeti, CPA | Pangea Tax LLC

Educational content, not advice for your specific situation. Figures current as of September 2026.

Your tax, retirement and estate planning shouldn’t be done separately. Decisions in one area can affect the others, especially as tax laws, financial circumstances and long-term goals evolve. We can help keep these important drivers of financial security in sync by providing coordinated strategies for managing taxes, supporting retirement objectives and preserving wealth for future generations. Contact us at (469) 453-1699 to get started.

Did you request an extension to file your 2025 individual federal income tax return? If so, you have until Oct. 15, 2026, to file it. But if you have the tax-filing information you need, you may want to file now. There’s no advantage to waiting until the deadline. If you owe tax, the IRS offers short- and long-term payment plans, as well as installment agreements, to taxpayers who qualify. It’s important to act quickly if you owe because any amount that was due April 15 accrues interest until the balance is paid. Call us at (469) 453-1699 if you need help filing your extended return or have questions regarding your current tax situation.

Owning assets jointly with your adult child can invite unwelcome tax consequences that may outweigh potential benefits. For example, owning an asset together as “joint tenants with right of survivorship” can open up transfer tax exposure. If you add your child to the title of property you already own, it may be considered a taxable gift of half the property’s value. And when you die, half of the property’s value will be included in your taxable estate. A properly designed trust can be a more tax-efficient option. Call us at (469) 453-1699 for details.

Business owners: Are you or your employees planning to go “back to school” soon? Two types of work-related education costs may qualify for business tax breaks: 1) those required to retain an existing job, license or professional status, and 2) those directly tied to maintaining or improving skills for a current trade or business. Deductible expenses can include tuition, books, supplies and possibly travel if the primary purpose of the trip is business-related education. However, you can’t deduct costs for education that help meet the minimum qualifications for a position or to qualify for a new trade or business. Contact us at (469) 453-1699 to learn the ABCs of work-related education expense deductions.

Whether your business sponsors a 401(k) plan or is considering it, automatic enrollment deserves a fresh look. This feature automatically enrolls eligible employees in the plan unless they opt out or choose a different contribution rate. Under the SECURE 2.0 Act, many 401(k) plans established on or after December 29, 2022, must include an auto-enroll feature for plan years beginning after December 31, 2024. (Some exceptions may apply.) Older plans generally aren’t required to add this feature, but doing so can benefit both employers and employees. Call us at (469) 453-1699 for more information.

Scholarship awards can provide significant financial relief to families of college-bound students. Most, but not all, of the awards are tax-free. To qualify for tax-free status, scholarships must meet three criteria: 1) The student must be a degree candidate at an eligible educational institution, 2) the award must be used to pay for tuition and fees, books, and certain supplies (not room and board or travel), and 3) the award can’t represent wages for teaching or research. Many graduate student awards have employment compensation components, so they may be taxable. Also, taxable scholarship money could potentially be subject to the “kiddie” tax. Contact us at (469) 453-1699 for more information.

One of the easiest ways to reduce the size of your taxable estate is to take advantage of your gift tax annual exclusion. For 2026, you can transfer up to $19,000 per recipient gift-tax-free. And you can double the exclusion to $38,000 per recipient if you split the gifts with your spouse. But it’s critical to understand the rules of gift-splitting to avoid unintended tax consequences. To elect to split gifts, the spouse making the gift must file a gift tax return, and the other spouse must consent by checking a box on the return and signing it. Contact us at (469) 453-1699 for additional details.

Applying for a business loan can feel like a catch-22. On one side of the desk is the risk-averse lender, who’s willing to loan money only to successful business owners. On the other side is the business owner, who needs the funds to grow and be successful! To avoid this paradox, approach a loan as a partnership rather than a provider-customer interaction. After all, if you were going into business with someone, you’d want to clearly understand their vision for the venture. Contact us at (469) 453-1699 for help effectively presenting your business plan and financials to prospective lenders.