The IRS doesn’t care how exciting your rodeo belt buckle is… they care whether you’re engaged in the activity with the actual intent to make a profit.

If it’s a business, losses are deductible.

If it’s a hobby, deductions are limited and can’t create a net loss against other income.

Big changes are coming to clean energy incentives — and sooner than many realize. A wide range of popular tax credits for electric vehicles, home energy upgrades, solar installations, commercial clean fleets, and even new energy-efficient construction are all set to phase out starting in late 2025. If you’ve been considering an EV purchase, home solar, or energy-efficient improvements, the window to benefit from these incentives is closing fast. Dive into our full breakdown to see which credits are disappearing, when they end, and how to make the most of them before they’re gone.

OBBBA adds a temporary, targeted deduction for tips. It’s not a universal “no tax on tips.” Many tipped amounts are still taxable, and payroll taxes still apply. Here’s the clean, CFO-level breakdown you can put in front of clients.

The IRS has issued 282 pages of proposed digital asset reporting regulations, along with official IRS explanation of the provisions, which cover a range of digital asset issues where there have been questions. Issues addressed include expansive definitions of brokers and a requirement that proceeds from the sale of digital assets be reported to the IRS starting in 2026, on new Form 1099-DA for transactions on, or after January 1, 2025.

Many of our clients that have applied for The Employee Retention Tax Credit (ERTC) ask about the taxability of the refunds received.

Quick Answer: Yes, the ERTC refund is taxable.

The IRS has taken the position that the income is taxable in the tax year/tax period to which the credit applies.

The ERTC refunds relate back to 2020 or 2021. These amounts will be received in later years and are to be included as income on the respective prior year return. This process will require amended returns for the entity and any shareholders/partners. This will result in tax due for in the amended tax year. Since this tax will now be deemed late, the IRS will impose Interest and Penalties.

Good News — sort of... There is a process to apply for a penalty waiver with the IRS, but unfortunately it is a manual one.

We often receive questions about record retention, so let's take a moment to clarify what you need to know.

Overall, the Federal law requires you to maintain copies of your tax returns and supporting documents for three years. This 'three-year law' leads many to believe that this 3-year period is set in stone and all-inclusive, but it is NOT.