Pinewood Accounting Services

10/02/2026

“But I didn’t take that money out of the business… so why do I owe tax on it?”

This is one of the most common questions I hear from business owners.

The answer comes down to an important distinction: business profit is not the same thing as money you take out of the business.

For example, let's say your business generates $150,000 of taxable profit, but you only distribute $75,000 to yourself.

You generally pay tax based on the $150,000 of taxable profit — not just the $75,000 you took out.

The same concept works in reverse: putting your own money into the business generally isn't taxable income, and taking money out isn't automatically a taxable event.

In simple terms: the IRS generally cares about the business's taxable profit, not how much cash you moved from the business to your personal account.

That's why a business can be profitable, have plenty of cash tied up in the business, and still have a tax bill.

If you don't know what your business's taxable income is going to look like before year-end, you may be setting yourself up for a tax-season surprise.

A little planning before December can go a long way toward knowing what that tax bill might look like.

09/10/2026

📢 TAX EXTENSION DEADLINES ARE APPROACHING! 📢

If you filed an extension, don’t wait until the last minute to get your taxes filed! ⏰

Mark down these important dates:

📅 September 15 — Extended filing deadline for many business tax returns, including partnerships and S corporations.

📅 October 15 — Extended filing deadline for many individual tax returns that received an extension.

⚠️ Remember: An extension gives you more time to file, not more time to pay taxes owed.

Need to get your return completed? Schedule your appointment today!

Let’s get your taxes taken care of before the deadline!

08/06/2026

Good news from the IRS! If you have a solid history of filing and paying on time, the IRS is now granting certain penalty relief automatically — no request needed. One more reason it pays to stay current! Questions about a penalty notice you've received? Give Pinewood Accounting a call — we're happy to take a look. (https://www.irs.gov/newsroom/irs-simplifies-penalty-relief-introduces-automatic-process-for-eligible-taxpayers)

07/04/2026

12/25/2025

12/24/2025

Holiday Office Closure Notice:

Our office will be closed on December 25, December 26, and January 1 in observance of the holidays. We will resume normal business hours on the next business day.

Wishing you a happy holiday season!

09/09/2025

On March 25, 2025, President Trump issued Executive Order 14247, which mandates a significant shift in how federal payments, including tax refunds and payments to the IRS, are processed. Effective September 30, 2025, nearly all transactions with the federal government, including the IRS, must be conducted electronically, phasing out paper checks.

The order requires that all federal disbursements — such as tax refunds, Social Security benefits and veterans benefits — be made electronically. Likewise, all payments to the government, such as taxes, fees and fines, will need to be made electronically as well.

Limited exceptions may apply, such as for individuals without access to banking services, emergency situations and specific national security needs. However, the IRS hasn’t yet finalized these exemptions.

08/04/2025

Continuing with important areas for Businesses in the One Big Beautiful Bill Act (OBBBA):

Section 179:
The maximum amount a taxpayer may expense under Sec. 179 is increased to $2.5 million, reduced by the amount by which the cost of the qualifying property exceeds $4 million.

The $2.5 million and $4 million amounts are adjusted for inflation for taxable years beginning after 2025.

This change applies to property placed in service in taxable years beginning after December 31, 2024.

Business Interest Limitation:
The OBBBA permanently reinstates the Sec. 163(j) interest deduction limitation by disregarding deductions allowable for depreciation, amortization and depletion in the calculation of adjusted taxable income.
This change applies to taxable years beginning after December 31, 2024.

Great opportunities to plan for!

07/05/2025

🚨 BREAKING: New Tax Bill Passed 🚨

The One Big Beautiful Bill Act (OBBA) has officially passed the House and the Senate on Capitol Hill. The bill brings several changes as well as extensions of previously temporary rules. We will be working to digest the full details of the bill but for now, here are a few highlights.

Permanent Extension of the 2017 TCJA
-Maintains current tax brackets and retains the increased standard deduction and repeal of the AMT for sub-$1M incomes.

Standard Deduction Enhancements
-Makes permanent the TCJA-level standard deduction and temporarily adds $1K (individual) / $2K (joint) additional standard deduction for 2025–2028.

Child Tax Credit (CTC)
-Raises the CTC to $2,500 per child (indexed) through 2028, then reverts to $2,000, with refundability preserved.

Senior Deduction / Social Security Relief
-Creates a $6K deduction for seniors (phase‑out for incomes >$75K/150K), effectively eliminating federal tax on much of Social Security income (set to expire in 2028).

Tip & Overtime Deduction
-Allows taxpayers to exempt $25k tip and overtime income from federal income tax through 2028 for workers earning under $150K.

SALT (State and Local Tax) Cap Raise
-Increases SALT deduction cap from $10K to $40K for incomes under $500K, with sunset post-2029.

Auto Loan Interest Deduction
-New deduction for interest paid on U.S. assembled auto loans up to $10K/year (phasing out at higher incomes), valid 2025–2028.

Business & Farming Incentives
-Pass-through deduction (also known as QBI or Sec 199A) permanently extended and increased from 20% to 23% starting 2026.
-Full bonus depreciation reinstated through 2029; Section 179 expensing expanded to $2.5M limit.
-R&D expensing and more liberal interest deductions restored.

Estate & Gift Tax Exemption
-Permanently raises individual exemption to $15M (indexed).

Clean Energy Credit Rollbacks
-Repeals significant EV and renewable energy tax credits (e.g., EVs, solar/wind, heat pumps).

New “Trump/MAGA” Savings Accounts
-Starts $1K seed contributions for newborns (2025–2029), tax‐deferred until age 18; contribution cap $5K/year.

We will be working through the comprehensive details of this big bill so you know if and how you may be affected.