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Tax Deductions

Maximize tax deductions and reduce your tax liability legally

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7 min read

When the CPSC Recalls Your Inventory: A Bookkeeping Guide for E-Commerce Resellers

Under the Consumer Product Safety Act, selling recalled products is illegal regardless of business size — and Amazon can bill recall refunds back to third-party sellers. This guide covers the three bookkeeping steps a recall triggers for e-commerce resellers — writing recalled inventory off the balance sheet under GAAP, recording reimbursements separately from revenue, and documenting disposal — plus why the accounting write-off and the IRS tax deduction often land in different periods.

Mike Thrift

e-commerceinventorycompliance
8 min read

IRS Announces 2027 HSA and HDHP Limits: What Small Business Owners and the Self-Employed Should Plan For Now

Revenue Procedure 2026-24 raises 2027 HSA contribution limits to $4,500 self-only and $9,000 family, with HDHP minimum deductibles of $1,750/$3,500 and out-of-pocket maximums of $8,700/$17,400. Here's what the new numbers mean for self-employed owners — including why the HSA deduction doesn't reduce self-employment tax, the April 15 contribution deadline that extensions don't move, and the over-contribution traps around employer contributions and the Last-Month Rule.

Mike Thrift

small-businessself-employmenttax-planning
8 min read

Portable Restroom Rental Bookkeeping: Why the Same Fleet Makes Money Two Completely Different Ways

How portable restroom rental companies should account for one fleet serving two revenue models — monthly construction contracts ($100–$300/unit) recognized ratably under ASC 606 versus lump-sum event rentals with deferred deposits — plus 2026 Section 179 expensing up to $2,560,000, 100% bonus depreciation, per-stop route costing, and seasonal cash flow budgeting.

Mike Thrift

bookkeepingsmall-businessrevenue-recognition
7 min read

The IRS Doesn't Have to Prove You Lied — It Just Has to Prove Your Receipts Don't Exist

In Goodwill-Oikerhe v. Commissioner, a tax preparer lost every disputed deduction — dependents, property tax, vehicle expenses, S-corp flow-throughs — and drew a 75% civil fraud penalty under Section 6663, largely because no records existed. Why the Cohan rule couldn't rescue him, and what contemporaneous bookkeeping must capture to survive an audit.

Mike Thrift

taxaudittax-deductions
9 min read

Urgent Care Clinic Bookkeeping: Why One Wrong Code Can Sink a Month's Revenue

Urgent care bookkeeping hinges on details generic templates miss: the POS-20 place-of-service code that sets the reimbursement rate (and triggers denials at payers who contract clinics as offices), denial-reason tracking for the ~60% of billing work that happens after claim submission, and Section 179's $2,560,000 limit plus permanent 100% bonus depreciation for X-ray and lab equipment in 2026.

Mike Thrift

healthcarebookkeepingsmall-business
8 min read

The Netherlands Is Cutting the Zelfstandigenaftrek Again: What ZZP Freelancers Should Budget for in 2026 and 2027

The Dutch zelfstandigenaftrek drops from €2,470 in 2025 to €1,200 in 2026 and €900 in 2027 — an 88% reduction since 2020's €7,280. For a ZZP freelancer with €50,000 profit, the 2026 cut alone adds roughly €400–€480 in tax, compounded by the MKB-winstvrijstelling falling to 12.70%. Here's the full phase-down schedule and five concrete budgeting steps.

Mike Thrift

taxtax-deductionstax-planning
10 min read

Charter Fishing Boat Bookkeeping: Per-Trip Costing, Crew Pay, and Surviving the Off-Season

A charter fishing operation grossing $126,000 a year can still not know what a single trip costs to run. This guide covers per-trip costing for fuel, bait, and mate pay ($100–$150 day rates plus 15–20% tips), 1099 vs. W-2 crew classification, vessel depreciation with Section 179's more-than-50% business-use test, why booking deposits are liabilities until the trip runs, off-season cash reserves, and the IRS's three-of-five-years profit test for hobby-loss scrutiny.

Mike Thrift

bookkeepingsmall-businessjob-costing
7 min read

Colorado HB26-1223: How Restaurants Keep Their Sales Tax in July, August, November, and December

Colorado's HB26-1223, signed June 4, 2026, lets qualifying food and drink retailers deduct up to $14,000 of monthly net taxable sales from state sales tax in July, August, November, and December of 2027 and 2028 — worth up to about $3,248 — plus a prepared-food utility exemption or 0.5% credit starting July 1, 2026. Here's who qualifies and how to record it.

Mike Thrift

restauranttax-compliancetax-deductions
10 min read

Commingling Personal and Business Funds: How One Bad Habit Kills Deductions, Invites Audits, and Pierces Your LLC Shield

Mixing personal and business money in one account can void your LLC's liability shield, get legitimate deductions disallowed for lack of substantiation under IRC Section 162, and turn a routine audit into a full transaction pull. Here's what commingling looks like, why courts and the IRS punish it, and a five-step cleanup plan.

Mike Thrift

small-businessllcliability-protection
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