#tax-planning
Tax Planning
Strategic tax planning to minimize liability and maximize savings
Idaho HB 559: Why 100% Bonus Depreciation Won't Apply on Your State Return
Idaho's HB 559, signed February 10, 2026, conforms to the OBBBA's expanded $2.5 million Section 179 cap but decouples from 100% bonus depreciation under Section 168(k), new Section 168(n) qualified production property expensing, and R&E transition relief — a divergence projected to cost Idaho businesses about $151 million in 2026. Here's who it hits and how the Form DBDA addback works.
Maine's 2% Millionaire Surtax and the New PTET Election: What Business Owners Owe in 2026
Maine's 2% surtax on taxable income above $1 million ($1.5 million joint) took effect January 1, 2026, alongside a new pass-through entity tax election at 7.15% with a 90% refundable owner credit. Here's who owes the surtax, how the PTET election interacts with it, and why the two must be modeled together.
Colorado HB26-1289: Worldwide Combined Reporting Becomes the C Corp Default in 2027
Starting with tax years beginning January 1, 2027, Colorado's HB26-1289 makes worldwide combined reporting the default for unitary C corporation groups — foreign subsidiaries included. The water's-edge election that avoids it binds for ten consecutive years, and a tax-haven blacklist (Hong Kong, Ireland, the Netherlands, Singapore) pulls listed entities back in regardless. Here's who is affected and what records you need.
Community Property Trusts: How Business Owners in Any State Can Get a Full Basis Step-Up
Alaska, Tennessee, Kentucky, Florida, and South Dakota let married couples in any state opt into community property treatment through a trust, so the entire asset — not just half — gets an IRC Section 1014(b)(6) basis step-up at the first spouse's death. What business owners should know about Section 754 elections, the one-year gift trap under Section 1014(e), and the unresolved IRS guidance.
Commuter Benefits in 2026: The IRS Raised Pre-Tax Transit and Parking Limits to $340/Month
The IRS raised the 2026 qualified transportation fringe benefit limit to $340/month each for transit and parking (up from $325), an $8,160 combined annual pre-tax ceiling. Here's how the benefit works, the 7.65% employer FICA savings, where 20-employee mandates in NYC, San Francisco, Seattle, and New Jersey make it legally required, and how to keep the bookkeeping clean.
Connecticut's New R&D Tax Credit for LLCs and S Corps: What Public Act 26-68 Means for Small Businesses
Connecticut's Public Act 26-68, signed May 26, 2026, gives pass-through entities — LLCs, S corps, and partnerships with gross income under $70 million — a 6% R&D tax credit for the first time, refundable at 65% (90% for biotech), capped at $1.5 million per business and $25 million statewide, and claimed through a DECD voucher within 90 days of year-end.
Delaware Just Raised Its LLC Annual Tax From $300 to $400 — Here's What Every Out-of-State Entity Owes
Delaware HB 400, signed May 21, 2026, raises the flat annual tax on LLCs, LPs, and GPs from $300 to $400 and the registered-series tax from $75 to $100 — retroactive to January 1, 2026. Here's who owes it, when it's due, and how to budget for it.
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.
New Hampshire's HB 1433 Child Care Tax Credit: What Employers Can Claim Against BPT and BET
New Hampshire's HB 1433, signed July 9, 2026, creates a Child Day Care Creation Tax Credit worth 50% of qualifying costs against the Business Profits Tax and Business Enterprise Tax, capped at $5 million statewide with a four-year carryforward. Here is who qualifies under the 12-slot rule, how it differs from HB 1634, and what to track before 2028 filings.
QDOT Rules, Rewritten: What Treasury Decision 10050 Means for Business Owners with Non-Citizen Spouses
Treasury Decision 10050, effective July 10, 2026, delivers the first substantial update to Qualified Domestic Trust (QDOT) regulations in three decades. Here is why the unlimited marital deduction excludes non-citizen spouses, what a QDOT requires — a U.S. trustee, an affirmative Form 706 election, and security for trusts over $2 million — and which four procedural fixes the new rules make for business owners' estates.
Vermont Just Tripled Its R&D Tax Credit: What Act 164 Means for Small Manufacturers
Vermont's Act 164, signed June 18, 2026, raises the state R&D tax credit from 27% to 75% of the federal Section 41 credit starting in tax year 2027 and lifts the statewide cap to $3.5 million. A $50,000 federal credit now yields $37,500 in Vermont instead of $13,500 — here's how small manufacturers can prepare their Form BA-404 documentation.
How to Get the IRS to Answer You in Writing: Private Letter Rulings and Determination Letters for Small Businesses
Oral advice from the IRS is not binding — a private letter ruling is. Under Revenue Procedure 2026-1, 9100 relief for a missed tax election generally costs about $14,500, with reduced tiers near $3,450 and $9,775 for smaller organizations, and the IRS must make contact within 21 days of a complete request. Here's when a ruling is worth the fee, what the request must contain, and the no-fee alternatives — Form SS-8, Form 3115, and Rev. Proc. 2013-30 — that cover most common cases.