Business Tax Preparation

$2,500,000 $4,000,000 phaseout

100% generally applies to qualified property acquired after January 19, 2025, subject to the written-binding-contract rule and normal placed-in-service requirement. Property acquired earlier generally has a 40% rate. A transition election can retain the prior 40% or 60% percentages for the first tax year ending after January 19, 2025.

7 years

27.5 years straight-line

39 years straight-line (31.5 years if placed in service before May 13, 1993)

Passenger automobiles Other property used for transportation Property used for entertainment, recreation, or amusement Any other property specified by IRS regulations

70 cents per mile

Regular method — allocate actual expenses based on percentage of home used exclusively for business Simplified method — $5 per square foot up to 300 sq ft ($1,500 maximum)

$176,100

$197,300 $394,600 for MFJ

Common-law test — focuses on behavioral control, financial control, and the relationship of the parties

Form 941 — quarterly federal tax return (or Form 944 annually) Form 940 — annual FUTA Forms W-2 and W-3 — employee wage statements Form 1099-NEC — independent contractors paid $600+

Business miles driven Date Destination Business purpose (Commuting is not deductible)

$25 per person per year

50% the cost

$31 million average annual gross receipts for the three prior tax years

all events have occurred that establish the liability amount can be determined with reasonable accuracy economic performance has occurred

include the portion recognized in applicable financial-statement revenue in the year received include the remaining amount in the next tax year maximum one-year deferral

tax basis limitation at-risk limitation passive-activity limitation

ordinary necessary paid or incurred during the tax year carrying on a trade or business

behavioral control financial control type of relationship

80% of taxable income before the NOL deduction generally carried forward indefinitely no general carryback

purchase price sales tax freight and installation other costs required to acquire and place the property in service

initial basis plus capital improvements minus depreciation allowed or allowable minus other basis reductions

office furniture — 7 years residential rental property — 27.5 years nonresidential real property — 39 years

ordinary income to the extent of prior depreciation or amortization gain above recapture may receive §1231 treatment

all depreciation-recapture income is recognized in the year of sale only the remaining eligible gain may be reported under the installment method

$23,500 elective deferral $7,500 age-50 catch-up $11,250 catch-up for ages 60 through 63 $70,000 annual additions limit

$16,500 regular elective deferral $3,500 age-50 catch-up $5,250 catch-up for ages 60 through 63