Tax Smart Advisors LLC

When life gives your kid lemons, and they make a lemonade stand, the IRS might want to fill their cup too.  Earnings from lemonade stands, babysitting, or mowing lawns count as taxable income in the eyes of the IRS.  Most kids won’t owe federal income tax unless they earn more than $15,000 in 2025. However, self-employment tax may still apply if their net earnings are over $400.  Young entrepreneurs deserve support and encouragement, along with help to avoid tax surprises that could sour the experience.  Have questions about how these rules apply to your family? Let’s chat.  #selfemployment #youngentrepreneur #taxtrivia #trivia #taxadvisor #taxprofessionals #taxpro #accountingfirm #accounting

A big-ticket asset sale doesn’t automatically lead to a large tax hit. An installment sale lets you spread payments and the associated taxes over multiple years. This approach offers greater flexibility, potential savings, and steady interest income.  Installment sales do come with complexities. Rules around related-party transactions, prior depreciation, and the need for a gain can all influence how this strategy works in practice.  Knowing that installment sales are not one-size-fits-all is reason enough to get tailored advice before moving forward.  Not sure how installment sales could impact your taxes? Reach out today. #taxstrategy #taxplanning #taxadvice #taxadvisor #taxprofessionals #accountingfirm #accounting #taxexpert #taxpro #installmentsales

Gone are the days of relying only on piggy banks.  Custodial accounts are a modern way to help kids learn about saving, investing, and building strong money habits early. They’re easy to open, flexible in how the funds can be used, and may even offer some tax perks.  Before you jump in, take time to consider a few important trade-offs: • The Kiddie Tax. After the first $2,700 in unearned income, the rest may be taxed at your rate rather than your child’s. • Financial Aid Impact. These accounts are considered a student asset on the FAFSA, which can significantly reduce eligibility. • Loss of Control. When your child reaches adulthood (18 or 21, depending on your state), they can spend the money however they want.  Custodial accounts can be a great teaching tool when used thoughtfully. Knowing how they work helps you plan the best path for your child’s financial future.  Have questions about custodial accounts? Let’s chat. #custodialaccounts #financialeducation #financialliteracy #wealthbuilding #moneytipsforparents #taxplanning #taxadvice #taxadvisor

Clarity around your personal and/or business finances is the first step toward better decisions and bigger outcomes.  At Tax Smart Advisors, we bring over 25 years of experience helping clients understand their numbers, make informed decisions, and uncover opportunities to reduce their tax bill.  We’re here to help you take control of your finances and plan boldly for what comes next. Our services include: ✔️ Tax prep and planning ✔️ Bookkeeping and payroll ✔️ Financial statements and analysis ✔️ Business consulting and valuation ✔️ Accounting software support Ready to make more and keep more? Let’s connect.  #taxstrategy #taxplanning #taxadvice #taxadvisor #taxprofessionals #accountingfirm #accounting #taxexpert #bookkeeping #smallbusiness #businesssupport #taxpro #accountingmadeeasy #accountingsoftware

Last week’s newly signed legislation grabbed attention for business tax changes, but the One Big Beautiful Bill includes plenty of updates for individuals too. Some of them could have a real impact when tax season rolls around.  Here’s a quick look at what’s changing: ❇️ The increased standard deduction is now permanent.  ❇️ The child tax credit rises to $2,200, with expanded refundability.  ❇️ The state and local tax (SALT) deduction cap increases to $40K through 2029. ❇️ New deductions for reported tips and overtime pay.  ❇️ Possible deductions for interest on car loans (for vehicles assembled in the U.S.). ❇️ Up to $1,000 in charitable deductions even if you don’t itemize. ❇️ New “Trump Accounts” allow for tax-favored savings for young children. These updates could bring a big shift in your tax outlook. Revisit your tax plan before year-end to see how they might affect your return.  Not sure what applies to you? Let’s chat. #taxupdates #OneBigBeautifulBill #taxlaw #taxdeduction #taxplanning #taxprofessional #accounting #taxadvice #taxstrategy #taxhelp #taxexpert

Big news out of Washington last week as the One Big Beautiful Bill was signed into law. This bill brings major tax updates for small businesses, with some provisions now permanent and several powerful new ones taking effect. Here are some of the biggest changes that could help reduce your tax bill: • 100% bonus depreciation is now permanent for new property placed in service. • Section 179 expense limits doubled to $2.5M. • U.S.-based research and development (R&D) costs can be fully deducted upfront. • The SALT deduction cap jumps from $10K to $40K. • Interest deduction rules are more favorable with EBITDA back in the calculation.  With these updates in place, it’s worth reviewing your tax approach to see how they align with your current goals.  Need to talk strategy? Reach out today. #taxupdates #OneBigBeautifulBill #smallbusiness #taxlaw #taxplanning #taxprofessional #accounting #taxadvice #taxstrategy #taxhelp #taxexpert

Summer often brings more flexibility in your schedule, opening the door to side gigs or freelance projects that can boost your income. But even part-time extra work can come with tax responsibilities. Our latest blog breaks down how that extra income fits into your tax picture and what steps you can take to stay ahead of it (link in comments).   #sidehustletips #summertaxtips #taxstrategy #taxplanning #taxadvice #taxadvisor #taxprofessionals #accountingfirm #accounting #taxexpert

Summer may be best known for sunshine and vacations, but it can also bring some unexpected (and welcome) tax perks if you know where to look.  Seasonal activities like sending your kids to camp or traveling for work could actually work in your favor when tax season rolls around next year.  Here are a few ideas to keep in mind: • Rent your home for less than 14 days, and that income may be tax-free.  • Summer day camps for kids under 13 might qualify for a tax credit.  • Hiring your teen to work in the family business could offer tax advantages. • Track expenses if you’re combining travel with business.  • Teens with side gigs can contribute to a Roth IRA based on what they earn.  Timely summer moves can lead to tax savings later. Let’s make a plan together. Reach out today! #summertaxtips #taxstrategy #taxplanning #taxadvice #taxadvisor #taxprofessionals #accountingfirm #accounting #taxexpert

Wishing you a safe and happy Fourth of July. Hope your day is filled with celebration, reflection, and good company. #FourthofJuly #IndependenceDay #4thofJuly #HappyFourth #HappyFourthofJuly

It should come as no surprise that identity theft is on the rise. More and more, thieves are using all kinds of tactics to get their hands on your personal information, especially your Social Security number. Once compromised, that number can be used to open accounts, file false tax returns, or apply for benefits in your name. To help reduce your risk, here are a few steps worth following: ✔️ Don’t carry your Social Security card in your wallet. ✔️ Share your number only when it’s truly required, like with your employer, the IRS, or your bank. ✔️ Avoid using any part of your SSN for login credentials, such as usernames or passwords. ✔️ Leave the SSN field blank on forms that don’t legally require it. ✔️ Never give it out over email or phone. ✔️ Check your credit reports regularly to catch suspicious activity early.  Getting a new SSN is extremely difficult. A little prevention now can save a lot of stress and cleanup later.  Have questions? We’re here to help. #SSN #identitytheft #identitytheftprevention #cybersecurity #taxadvice #taxadvisor #taxpro #taxprofessionals #accountingfirm #accounting