Consistent CPA Jo

💡 Should You Elect PTET for Your S-Corp? Pass-Through Entity Tax (PTET) is a strategic state-level workaround to bypass the $10,000 SALT deduction cap on your federal return. It lets your S-Corp pay state income tax at the entity level , turning a limited personal deduction into a full business expense. Here's how to evaluate if it’s right for you: ✅ Step-by-Step PTET Decision Checklist ❓ Question ✔️ Consider This Does your state allow PTET? Over 30 states offer PTET elections—check your state rules. Do you owe significant state income taxes? PTET is most valuable if your state tax exceeds $10,000. Are all shareholders residents of the state? Nonresident shareholders may disqualify or complicate election. Does your business qualify (not SSTB)? Some states or new laws may exclude service-based entities. Are you set up for entity-level payments? You must file, pay, and record PTET correctly through the S-Corp. Are you ready to track PTET credits? Owners receive credits o...

 📅 Day 2: 3 Common Tax Myths Small Business Owners Still Believe Running a business comes with more than just offering great services or products — it also comes with figuring out what’s fact and what’s fiction when it comes to taxes. And unfortunately, there’s a lot of misinformation out there. Let’s clear up three myths I hear all the time — and what the truth actually is. 💭 Myth 1: “If I use my personal credit card, I can’t deduct the expense.” Not true! You can still deduct legitimate business expenses paid with a personal card — as long as they were truly for the business . The key is documentation: save receipts and make a note of why each purchase was business-related. (Still, I always recommend separating your accounts ASAP — it makes tax time so much easier.) 💭 Myth 2: “A home office deduction increases your chance of an audit.” This one is outdated. If your home office meets the IRS rules (used regularly and exclusively for business), then you’re allowed to ...

  📅 Day 1: Why I Started This Blog as a CPA Hi there — and welcome! I’m a CPA with a deep love for clarity, structure, and empowering small business owners to take control of their taxes. For years, I studied, practiced, and prepared for the CPA exam, and when I finally passed, I thought the journey was over. But in truth, it had only just begun. This blog exists because I’ve seen too many creative, driven entrepreneurs feel overwhelmed or uncertain about their tax responsibilities. Not because they’re doing anything wrong — but because no one ever explained things simply, clearly, and without all the jargon. So here’s the goal: One practical, digestible tax tip each day for 30 days. Whether you're a freelancer, side hustler, online seller, or solo entrepreneur, this series will help you understand how taxes really work — and how to make smarter decisions that support your business and your peace of mind. I’ll cover deductions, business structures, recordkeeping hacks,...

 Here are detailed examples of tax-saving strategies tailored for small business owners, categorized by entity type and tax approach. These strategies are useful for both maximizing deductions and reducing taxable income legally and effectively. 🧾 1. Deductible Business Expenses ✅ Examples Home Office Deduction : If you use a portion of your home exclusively for business, deduct a proportion of rent, mortgage interest, utilities, and property taxes. Simplified Method : $5/sq ft up to 300 sq ft = up to $1,500 deduction. Vehicle Expenses : Use mileage deduction (67 cents/mile for 2024) or actual expense method (gas, insurance, maintenance). Office Supplies and Equipment : Deduct everything from computers and printers to pens and paper. Business Travel : Airfare, hotel, 50% of meals, and even ride-shares while on business trips are deductible. 💳 2. Retirement Plan Contributions ✅ Examples Solo 401(k) : Contribute up to $23,000 (202...

Running a small business isn’t easy—but saving on taxes can be. If you’re a freelancer, side hustler, or running your own shop, you’ve got more ways to cut your tax bill than you might think. Let’s break down 10 common tax deductions that could save you serious cash. 1. Home Office Deduction Working from home? If there’s a space you use just for work (like that corner in your guest room), you could qualify for a home office deduction. There’s a simple method based on square footage or a more detailed one where you track your actual expenses. 2. Business Use of Your Car Using your car for work errands or meetings? You can deduct either your mileage or actual costs like gas and maintenance. Pro tip: Apps like MileIQ make tracking a breeze. 3. Office Supplies & Gear Buying pens, notebooks, or even a new laptop? If it’s for your business, it likely counts. Bigger items might qualify for a full write-off in the year you buy them. 4. Internet and Phone Bills If you use your phone or ...

  💰6 Tax-Saving Tips You Might Be Missing (Excluding 401(k) & IRA!) When tax season rolls around, everyone’s looking for ways to save a bit more. While most people are familiar with saving through 401(k) or IRA contributions, there are plenty of other tax-saving strategies worth exploring. Here are 6 practical tax-saving tips that don’t involve a 401(k) or IRA —perfect for employees, freelancers, or anyone looking to lower their tax bill smartly. 1. 💼 Use a Flexible Spending Account (FSA) An FSA lets you set aside pre-tax income for medical or dependent care expenses . Healthcare FSA : Covers out-of-pocket medical costs like copays, prescriptions, or medical devices. Dependent Care FSA : Helps with childcare expenses, including daycare or after-school care. Why it matters : The amount you contribute reduces your taxable income, which can lower your total tax liability. 2. 🧾 Deduct Business Expenses (Freelancers & Side Hustlers) If you freelance, run a b...

Hey money-savvy friends! 🙌 Want a simple (and totally legal) way to cut your tax bill while building your future nest egg? Let’s talk about retirement contributions . 🧓🏽🌴 If you’ve got a 401(k) through your job, try to contribute as much as you can—especially up to the employer match. That’s free money , folks! And your contributions are made pre-tax , which reduces your taxable income . Less income = less tax. 🎯 No 401(k)? No problem. You can contribute to a Traditional IRA , and depending on your income and situation, you may be able to deduct that contribution on your taxes too. BUT here's the catch 🛑—if you're already covered by a workplace retirement plan like a 401(k), you might not be able to deduct your IRA contributions, especially if your income is above certain limits. 👉 Translation: You can technically contribute to both a 401(k) and a Traditional IRA in the same year, but you may not get a tax break on both. 2025 contribution limits: 401(k): Up to $...