Understanding Guaranteed Payments: Impact On Business And Personal Taxes
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This article is part of Reinspired Books’ One Big Beautiful Bill Series — covering new federal deductions for 2025–2028.You can also read: Each deduction applies at the tax return level, not per paycheck. Click any link above for details. Overview The One Big Beautiful Bill created a new federal income tax deduction for people who…
Deductible business expenses must be ordinary and necessary, meaning it’s appropriate for the business under normal circumstances.
CPA vs Enrolled Agent: Who Should You Hire for Your Taxes? If you’re searching for tax help, you’ve likely asked yourself:CPA vs EA — who should you hire for your taxes? Both Certified Public Accountants (CPAs) and Enrolled Agents (EAs) are credentialed professionals who can prepare tax returns and represent clients before the IRS. However,…
Overview When tax law or employee benefit plans mention “highly compensated employees” (HCEs), they’re referring to a definition set by Internal Revenue Code § 414(q). This definition is essential for employers, tax professionals, and business owners—especially now that it’s being referenced in new federal laws like the One Big Beautiful Bill, which uses HCE limits…
Overview The One Big Beautiful Bill introduces a new above-the-line deduction for interest paid on qualified car loans, beginning with the 2025 tax year and lasting through 2028 (unless extended by Congress). This deduction allows individuals who purchase and finance a qualifying personal-use vehicle to deduct a portion of their car loan interest — even…
Overview The One Big Beautiful Bill introduces a new federal income-tax deduction for qualified overtime compensation.Beginning in 2025, eligible employees can deduct the overtime premium portion of their pay — the extra ½ rate in “time-and-a-half” wages required under the Fair Labor Standards Act (FLSA). The deduction is designed to provide temporary relief for hourly…