#tax
Tax
Tax strategies, planning, and compliance for individuals and businesses
Writing Down Obsolete Inventory: A Small Business Guide to Lower of Cost or Net Realizable Value
Under GAAP's ASC 330, inventory must be carried at the lower of cost or net realizable value. This guide shows small businesses how to calculate NRV, book the write-down, document it for the IRS, and avoid the book-tax timing trap.
The New IRS Schedule 1-A: Your Guide to the Four New Deductions for Tips, Overtime, Car Loans, and Seniors
Schedule 1-A is the new IRS form for tax years 2025-2028 holding four below-the-line deductions — up to $25,000 for tips, $12,500/$25,000 for the FLSA overtime premium, $10,000 for new-car loan interest, and $6,000 per person age 65+. Each phases out on its own MAGI threshold, and this guide covers who qualifies, how the math works, and what records defend the claim.
Print-on-Demand Bookkeeping: Why Your Printful Bill Is COGS, Not an Expense
Printful and Printify fulfillment charges typically run 45-55% of retail price and belong in Schedule C Part III as cost of goods sold, not in general expenses. This guide separates the two print-on-demand models, shows why a 50% COGS ratio means a $30 sale yields about $6 of contribution after ads and processing, and lays out a chart of accounts and monthly reconciliation that keep margins and taxes correct.
The Federal 1099-K Threshold Is $20,000 Again — But Your State May Still Require One at $600: A State-by-State Guide for Online Sellers and Gig Platforms
Federal 1099-K filing reverted to $20,000 and more than 200 transactions for 2026, but Maryland, Massachusetts, Vermont, Virginia, DC, Montana and North Carolina still require it at $600 — learn which states keep the lower threshold, how payment-card and TPSO rules differ, and how to book gross, fees, and sales tax so your books tie to every form you receive.
The 2026 AMT Cliff: Lower Phaseout Thresholds, Twice the Clawback
For 2026 the OBBBA resets AMT phaseout thresholds to $500,000 single and $1,000,000 joint and doubles the exemption clawback from 25 to 50 cents per dollar, so the same income that owed no AMT in 2025 can owe five figures next year. A guide to who is exposed, how to estimate your position, and five planning moves before year-end.
Cigar Lounge and Retail Tobacco Shop Bookkeeping: State Excise Tax, Humidor Inventory, and the Membership-Locker Revenue You Are Probably Booking Wrong
Premium cigar lounges pay OTP excise as a capped percentage of wholesale, carry humidor inventory at landed cost with FIFO or average costing, and must defer locker and membership fees as unearned revenue until each month is provided — separating all three keeps margins, taxes, and audits accurate.
The IRA Contribution Limit Hits $7,500 for 2026: Your Freelancer and Small-Business Owner's Guide to the First Big Increase in Years
The IRA contribution limit rises to $7,500 for 2026 — the first base increase since 2023 — plus a new $1,100 catch-up at 50+. Learn who qualifies, how it stacks with Solo 401(k) and SEP, and how freelancers can capture the extra room before April 15, 2027.
The New 1% Remittance Transfer Tax: What Small Businesses Paying Overseas Contractors Need to Know in 2026
Since January 1, 2026, cash-funded remittance transfers sent abroad are subject to a 1% federal excise tax collected by providers and reported on Form 720. This guide explains what triggers the tax, which bank-funded transfers are exempt, and how small businesses should record the tax, fees, and contractor payments.
App Store Payout Reconciliation: Why Your Take-Home Is ~60% Below Gross Revenue
App-store payouts land roughly 60% below sticker price after VAT, store commission, refunds, tax withholding, and currency conversion. This guide traces each deduction from gross sales to the bank deposit and lays out a 30-minute monthly reconciliation workflow for indie developers.
California Just Taxed SaaS: A State-by-State Guide to Software Subscription Sales Tax in 2026 and 2027
California SB 122 makes SaaS and other digital products subject to sales tax from January 1, 2027, with Colorado's HB 26-1223 flipping the same day. This guide maps SaaS taxability across all 50 states as of August 2026, explains economic nexus thresholds like California's 500,000 dollars plus the 5-million-dollar purchaser self-assessment rule, and gives a pre-January compliance checklist for software sellers and buyers.
The Dependent Care FSA Just Got Its First Raise in 40 Years: What the New $7,500 Limit Means for Your Business
The dependent care FSA limit rises from $5,000 to $7,500 per employee for plan years beginning after December 31, 2025 — the first permanent increase since 1986. It applies only after the plan document is amended, the 55% average benefits test gets harder to pass, and the child care credit can still beat the FSA for lower earners.
The 1099 From Amazon Is Not Your Income: A Self-Publisher's Guide to Reconciling KDP, IngramSpark, and Audiobook Royalties
Amazon KDP's 1099-MISC (issued at just $10 in royalties) reports payments on Amazon's calendar — not your income. KDP dashboard earnings, bank deposits, and the 1099 never match because of 60-day payout lags, returns, and Kindle Unlimited fund allocations, and IngramSpark sends no tax form at all. A monthly per-platform, per-title close reconciles all three and documents the differences as timing items before Schedule C.