317-398-9753
[email protected]
Your Business. Your Family. Our Priority.
A company owners’ potential for personal financial security usually depends on the success of the business. Our commitment and responsibility is to help keep your business running smoothly and to help achieve your personal financial goals. Whether you are a business or an individual, our specialized staff will provide you with assistance in all your tax, reporting, financial and business affairs.
We're proud members of:
Brammer & Yeend is an independently owned and operated member firm of CPA Connect, a companion association to CPAmerica International
Financial information and reporting should not be a diversion for business owners, instead, financial information should be accurate, available, and insightful. We leverage experience and technology to provide business owners with dynamic resources and management tools.
Our personal services are designed to help busy, successful families manage their finances and grow their wealth with confidence and peace of mind. We do this by working together with our business solutions, allowing us to partner with clients and coordinate business and personal planning in order to meet their most important goals.
We strive to provide excellent service and solutions that fit our client’s specific needs and are industry appropriate. Our experienced CPAs have worked with clients in a variety of industries and understand the intricacies of each and apply the best solution possible. Over the years we have serviced clients in industries including agribusiness, retail, construction, manufacturing, food & beverage and many more. Below are some of our industries where we have specialized experience and expertise.
As a small business owner, you don’t have a built-in employer-matching plan to lean on for retirement planning. But you do have control over building wealth over time, and small business owners have access to some of the best retirement tools available. The key is knowing which tools to use. Here’s what to know.
A traditional 401(k) is still one of the most effective and versatile ways to save. Small business owners can contribute to a traditional 401(k) as both the employer and the employee, which means a higher savings potential. And contributions are pre-tax, which lowers your current taxable income. This is a definite win for small business owners, but it comes with a tradeoff: more administration as annual filings, nondiscrimination testing, and oversight all come into play.
With a Roth 401(k), you contribute after-tax dollars, so there’s no immediate tax break, but your withdrawals in retirement are tax-free. This approach could be a good fit if you expect your tax rate to be higher later. It’s not uncommon for business owners to use both a traditional and Roth 401(k). By using this diversification strategy, you can protect yourself from uncertainty around future tax rates.
The Simplified Employee Pension (SEP) IRA is easy to set up and maintain, which makes it popular among small business owners and self-employed individuals. You can contribute a percentage of your income each year. Contributions are tax-deductible, and there’s very little administrative paperwork.
Keep in mind that you generally need to contribute the same percentage for your employees as you do for yourself. That could get expensive as your team grows.
If you’re self-employed with no employees (other than a spouse), a Solo 401(k) offers a lot of flexibility. You can contribute as both employee and employer, which often means higher total contributions than SEP-IRA plans. Establishing a Solo 401(k) is typically more involved than a SEP-IRA, but the flexibility and higher limits make it worth it for many business owners.
You aren’t limited to just one approach. Many business owners layer strategies to boost their tax benefits and retirement security. It’s a smart idea to work with a tax professional to understand how different plans work together to maximize contributions while staying within IRS rules and addressing long-term retirement goals.
Retirement plans come with rules. Contribution limits, deadlines, deduction rules, and reporting requirements can be complex and ever-changing. This is why it helps to work with a qualified professional who understands the needs of small businesses. They can help you choose the right plan, avoid mistakes, and adjust as your business evolves.
As lawmakers look to the 2026 midterm elections, tax relief is back in the conversation. Two new proposals aim to lower taxes for low- and middle-income households by reducing how much income is taxed in the first place. Both plans have different approaches, but they both want to shift more of the tax burden onto high earners. Read on for an overview of both plans and who would actually benefit from them.
Senator Cory Booker recently introduced the “Keep Your Pay Act,” which would raise the standard deduction for joint filers from $32,200 to $75,000. Single filers would get a $37,500 deduction, up from $16,100.
That means a large portion of income would be protected from federal taxes. That could significantly lower tax bills for low and middle-income households.
But Booker doesn’t stop there. The “Keep Your Pay Act” includes additional family-focused tax benefits:
To pay for this, Booker proposes increasing taxes on higher-income households. The top federal income tax rates would rise from 35% and 37% brackets to 41% and 43%, respectively. His plan also includes raising the corporate tax rate and increasing the stock buyback excise tax, though details are still limited.
Sen. Chris Van Hollen and Rep. Don Beyer proposed a competing plan called Working Americans’ Tax Cut Act (WATCA). This plan would eliminate income taxes on lower-income workers through an “alternative minimum tax” system.
Under WATCA, single filers would pay no federal income tax on the first $46,000 they earn, while married couples filing jointly would be exempt from federal income tax on the first $92,000. To qualify, taxpayers’ income must be at or below 175% of the exemption. This works out to around $85,000 for individuals and $161,000 for couples.
Eligible taxpayers would calculate their taxes two ways and pay whichever is lower: under the current tax code or a flat 25.5% rate applied only to income above the $46,000 and $92,000 thresholds.
To fund the plan, Van Hollen proposes a tiered surtax on high earners: a 5% surtax on incomes above $1 million (or $1.5 million for joint filers), 10% above $2 million (or $3 million for joint filers), and 12% above $5 million (or $7.5 million for joint filers).
Like Booker’s plan, the goal here is to shift the tax burden to high earners while easing pressure on low- and middle-income earners.
Both plans aim to help working households, but the impact wouldn’t be the same for everyone. Some experts argue that middle- and upper-middle-income households would actually see the biggest savings. These taxpayers have enough taxable income to benefit from larger deductions or exemptions, whereas lower-income households often have little federal income tax liability to begin with.
For now, these tax plans are just proposals, and they would need broad political support to move forward. But ahead of the 2026 midterm elections, both proposals signal the direction Democrats want to take on tax policy.
Americans are turning to AI for all kinds of advice these days, and that includes money advice.
This makes sense. Professional advice is expensive, especially when someone just wants to know, “Am I saving enough money for the future?” or “Should I pay off debt before investing?” AI is readily available, we don’t have to fear it judging us, and it can explain complicated concepts in plain English. That’s a good starting point.
But the key phrase here is starting point. Here’s a look at what AI does well in terms of personal finance advice and where you need to be careful.
One of the ways AI can be most useful for personal finances is helping people understand how money moves in and out of their accounts. Many financial apps now connect to bank accounts and credit cards. Instead of manually tracking every purchase, these systems can automatically sort transactions into categories like groceries, dining, utilities, and entertainment.
And spending patterns soon become clear.
AI tools can flag spending trends that might be easy to miss. When the information is presented plainly, it becomes easier to adjust spending habits.
Some apps also send alerts when bills are due or when balances fall below a certain level, which can help people avoid late fees or overdraft charges.
Budgeting apps can suggest spending limits based on past spending habits. Instead of guessing how much money to allocate to expenses like groceries or gas, the apps calculate estimates based on actual spending history.
Saving tools have also improved. Some apps review income, recurring bills, and spending patterns to estimate how much money you can safely move into savings for the month. Some systems even automate the transfers. For those who struggle to save consistently, this kind of automation can be a major help.
AI is becoming a popular tool for people who want to understand financial topics or compare options. For example, someone thinking about opening a balance transfer credit card to consolidate debt might ask AI to compare interest rates, annual fees, and rewards programs.
The same goes for larger decisions like different mortgage types, retirement accounts, or insurance policies. AI can break down the pros and cons in seconds.
AI should not have the final say in your decisions, but it can help you understand your choices clearly and faster.
AI tools are proving useful for initial research, but they raise legitimate concerns about data privacy. Many financial platforms require access to sensitive personal information, such as bank account balances, transactions, and income details. For this reason, always review how a company handles personal data before connecting any accounts. Look for strong encryption, clear privacy policies, and transparent explanations of how information is stored and shared.
Accuracy is another issue. AI relies on data and patterns, and they can sometimes misinterpret information. Financial situations are highly personal and sometimes complex. An AI-generated suggestion or overview likely won’t fit every person’s unique circumstances.
AI can organize information and explain financial concepts. It can also point out possible strategies. But financial decisions should still reflect personal goals, individual timelines, and risk tolerance.
And sometimes professional advice is needed.
Financial experts and tax advisors bring experience that software can’t fully replicate. AI can help you prepare better questions for those conversations, but it shouldn’t replace them.
Personal finance will always involve a lot of moving parts. Income, bills, debt, savings goals, and investments are all pieces on the financial chess board. It can be a lot, and it can get confusing. AI is helping Americans see the pieces more clearly.
When it comes to planning for retirement, most couples can agree to save as much as possible. But when each spouse focuses on their own 401(k), without thinking much about how the two plans work together, they could miss out on valuable employer matching money. Here’s why coordinating 401(k) plans matters.
When each spouse has a workplace 401(k), the two plans likely aren’t identical. For instance, one employer might match 100% of your first 4% of contributions. Another employer might match 50% of the first 6%. Those differences might sound small, but they add up fast.
Research suggests that couples who don’t pay attention to the difference in company matches could miss out on roughly $14,000 in retirement savings over their lifetime.
Employer matching contributions are one of the best benefits a job can offer. When you contribute to your retirement account, your employer adds money to that account. That’s as close to free money as it gets.
But to take full advantage, you need to know the rules of each plan. And then you need to decide together where contributions should go first.
Say your employer matches 100% on the first 3% of your salary. Your spouse’s employer matches 50% on the first 4%. The smart move is to make sure the spouse with the 100% match contributes enough to capture the full benefit. After that, shift focus to the other plan.
This kind of adjustment just requires being intentional about where the money goes.
How many couples sit down together and ask, “Which of our 401(k)s gives us the better deal?” Each person typically handles their own benefit enrollment, their own contribution rate, and their own plan. Often, the two 401(k)s are never really compared.
Over time, one spouse might be leaving employer-matched money unclaimed while the other might be over-contributing to a plan with a weaker match. The key is to look at the full picture together.
The communication fix? Set aside time a couple of times a year to review finances and retirement accounts together. Call it a money date or a finance check-in, whatever makes it feel approachable and not like a chore. It doesn’t need to be complicated or stressful.
Here are the basics to cover:
If there’s one thing to depend on in life, it’s change. A new job might come with a better 401(k) match. A raise might make it easier to increase contributions. These life changes are worth catching early so you can adjust your strategy while it makes the biggest difference.
Retirement planning is about making sure every dollar is working effectively toward your goals. And the employer match is one of the easiest ways to get more out of what you’re already contributing.
The One Big Beautiful Bill (OBBB) delivers several retroactive and expanded tax breaks for 2025 that could lower your tax bill in a significant way. Here are the deductions and credits that could save their business money.
Section 179 lets you deduct the full cost of qualifying equipment and property in the year you buy it, instead of spreading the deduction over several years. For 2025, the deduction limit increased, making it easier for business owners to write off vehicles, machinery, computers, and other assets immediately.
Bonus depreciation allows businesses to deduct a large percentage of an asset’s cost in the first year. A phase-down rate was scheduled under a previous law, but the OBBB reinstated 100% bonus depreciation rates for property placed in service after January 19, 2025. Combined with Section 179, this can significantly reduce taxable income for companies investing in machinery, vehicles, or technology.
Before 2025, research and development costs had to be amortized over five years. The OBBB brought back immediate expensing for R&D costs.
If your business invests in developing new products, software, or processes, you can now deduct those expenses in full right away. Additionally, businesses with costs in 2022, 2023, and 2024 can file amended returns for refunds.
The Qualified Business Income (QBI) deduction continues to allow eligible owners of pass-through entities, such as S corporations, partnerships, and sole proprietorships, to deduct up to 20% of qualified business income.
The deduction now phases out at higher income levels. And beginning this year, there is a minimum QBI deduction of $400 for businesses with at least $1,000 of QBI.
The OBBB eased restrictions on deducting business interest expenses. Previously, many businesses faced limitations based on their earnings. The expanded rules make it easier to deduct interest on business loans and lines of credit.
Good news for gig workers and small online sellers: the $600 reporting threshold for payment platforms is gone. Instead, the reporting requirement reverts to the previous rule: more than $20,000 in gross payments and over 200 transactions.
Several changes may also benefit small business owners personally and their employees
These tax breaks only help if you use them, so work with a tax professional to make sure you’re claiming everything you’re entitled to.
If you’ve inherited an IRA in recent years, you should be aware that the SECURE Act, passed in 2019, changed how many beneficiaries need to handle this inheritance. What used to be a generous benefit that could last decades now comes with a strict deadline that can become a tax headache without proper planning. If you inherited an IRA prior to 2020, you’re still covered under the old rules. But for those who inherited an IRA after 2020, here’s what you need to know.
If you inherit an IRA from someone other than your spouse, you’ll likely face the 10-year rule.
In the past, most non-spouse beneficiaries could spread withdrawals over their lifetime, allowing the account to grow longer. This was called a “stretch IRA.” The SECURE Act largely eliminated that option for most heirs, now requiring them to withdraw all assets within the account by the end of the 10th year following the original owner’s death.
There’s no penalty for waiting until year 10 to withdraw everything at once, but that strategy often backfires. It could push you into a higher tax bracket and create a tax nightmare. Instead, spread withdrawals across the 10 years to manage your tax burden. It’s a smart idea to work with a tax professional who can help you figure out the timing that makes sense for your situation.
The SECURE Act carved out exceptions for certain beneficiaries, called “eligible designated beneficiaries.” These beneficiaries are still allowed to take distributions over their life expectancy. They include:
Among these beneficiaries, a surviving spouse has the most freedom with the account. They can roll the inherited IRA into their existing IRA or take distributions based on life expectancy. This gives them more control over the timing and tax impact.
Minor children can stretch withdrawals only until age 21, at which point the 10-year clock begins.
The change in the SECURE Act was designed to generate more tax revenue faster, but it created planning challenges for many beneficiaries.
For instance, with a traditional IRA, you pay taxes on withdrawals. If you’re still in the workforce and you’re forced to add IRA withdrawals on top of your income, you could end up getting pushed into a higher tax bracket.
If you’re subject to the 10-year rule, consider spreading withdrawals evenly across multiple years. This can help manage your tax bracket.
Additional smart moves to think about include taking larger withdrawals in years when income is lower, coordinating withdrawals with retirement or a career change, and working with a tax professional who can advise you on the best path forward.
The 10-year rule means less flexibility and a greater risk of higher taxes, so planning and timing are everything. The deadline might be a decade away, but the tax implications begin the moment you inherit an IRA.
Keeping an open line of communication is important to us. We invite you to reach out to us either by phone, email, or this form to ask questions, request an appointment or talk about any finance-related matter that comes to your mind.
317-398-9753
8 Public Square
Shelbyville, IN, 46176
Your Business. Your Family. Our Priority.
A company owners’ potential for personal financial security usually depends on the success of the business. Our commitment and responsibility is to help keep your business running smoothly and to help achieve your personal financial goals. Whether you are a business or an individual, our specialized staff will provide you with assistance in all your tax, reporting, financial and business affairs.
We're proud members of:
Brammer & Yeend is an independently owned and operated member firm of CPA Connect, a companion association to CPAmerica International
Financial information and reporting should not be a diversion for business owners, instead, financial information should be accurate, available, and insightful. We leverage experience and technology to provide business owners with dynamic resources and management tools.
Our personal services are designed to help busy, successful families manage their finances and grow their wealth with confidence and peace of mind. We do this by working together with our business solutions, allowing us to partner with clients and coordinate business and personal planning in order to meet their most important goals.
We strive to provide excellent service and solutions that fit our client’s specific needs and are industry appropriate. Our experienced CPAs have worked with clients in a variety of industries and understand the intricacies of each and apply the best solution possible. Over the years we have serviced clients in industries including agribusiness, retail, construction, manufacturing, food & beverage and many more. Below are some of our industries where we have specialized experience and expertise.
As a small business owner, you don’t have a built-in employer-matching plan to lean on for retirement planning. But you do have control over building wealth over time, and small business owners have access to some of the best retirement tools available. The key is knowing which tools to use. Here’s what to know.
A traditional 401(k) is still one of the most effective and versatile ways to save. Small business owners can contribute to a traditional 401(k) as both the employer and the employee, which means a higher savings potential. And contributions are pre-tax, which lowers your current taxable income. This is a definite win for small business owners, but it comes with a tradeoff: more administration as annual filings, nondiscrimination testing, and oversight all come into play.
With a Roth 401(k), you contribute after-tax dollars, so there’s no immediate tax break, but your withdrawals in retirement are tax-free. This approach could be a good fit if you expect your tax rate to be higher later. It’s not uncommon for business owners to use both a traditional and Roth 401(k). By using this diversification strategy, you can protect yourself from uncertainty around future tax rates.
The Simplified Employee Pension (SEP) IRA is easy to set up and maintain, which makes it popular among small business owners and self-employed individuals. You can contribute a percentage of your income each year. Contributions are tax-deductible, and there’s very little administrative paperwork.
Keep in mind that you generally need to contribute the same percentage for your employees as you do for yourself. That could get expensive as your team grows.
If you’re self-employed with no employees (other than a spouse), a Solo 401(k) offers a lot of flexibility. You can contribute as both employee and employer, which often means higher total contributions than SEP-IRA plans. Establishing a Solo 401(k) is typically more involved than a SEP-IRA, but the flexibility and higher limits make it worth it for many business owners.
You aren’t limited to just one approach. Many business owners layer strategies to boost their tax benefits and retirement security. It’s a smart idea to work with a tax professional to understand how different plans work together to maximize contributions while staying within IRS rules and addressing long-term retirement goals.
Retirement plans come with rules. Contribution limits, deadlines, deduction rules, and reporting requirements can be complex and ever-changing. This is why it helps to work with a qualified professional who understands the needs of small businesses. They can help you choose the right plan, avoid mistakes, and adjust as your business evolves.
As lawmakers look to the 2026 midterm elections, tax relief is back in the conversation. Two new proposals aim to lower taxes for low- and middle-income households by reducing how much income is taxed in the first place. Both plans have different approaches, but they both want to shift more of the tax burden onto high earners. Read on for an overview of both plans and who would actually benefit from them.
Senator Cory Booker recently introduced the “Keep Your Pay Act,” which would raise the standard deduction for joint filers from $32,200 to $75,000. Single filers would get a $37,500 deduction, up from $16,100.
That means a large portion of income would be protected from federal taxes. That could significantly lower tax bills for low and middle-income households.
But Booker doesn’t stop there. The “Keep Your Pay Act” includes additional family-focused tax benefits:
To pay for this, Booker proposes increasing taxes on higher-income households. The top federal income tax rates would rise from 35% and 37% brackets to 41% and 43%, respectively. His plan also includes raising the corporate tax rate and increasing the stock buyback excise tax, though details are still limited.
Sen. Chris Van Hollen and Rep. Don Beyer proposed a competing plan called Working Americans’ Tax Cut Act (WATCA). This plan would eliminate income taxes on lower-income workers through an “alternative minimum tax” system.
Under WATCA, single filers would pay no federal income tax on the first $46,000 they earn, while married couples filing jointly would be exempt from federal income tax on the first $92,000. To qualify, taxpayers’ income must be at or below 175% of the exemption. This works out to around $85,000 for individuals and $161,000 for couples.
Eligible taxpayers would calculate their taxes two ways and pay whichever is lower: under the current tax code or a flat 25.5% rate applied only to income above the $46,000 and $92,000 thresholds.
To fund the plan, Van Hollen proposes a tiered surtax on high earners: a 5% surtax on incomes above $1 million (or $1.5 million for joint filers), 10% above $2 million (or $3 million for joint filers), and 12% above $5 million (or $7.5 million for joint filers).
Like Booker’s plan, the goal here is to shift the tax burden to high earners while easing pressure on low- and middle-income earners.
Both plans aim to help working households, but the impact wouldn’t be the same for everyone. Some experts argue that middle- and upper-middle-income households would actually see the biggest savings. These taxpayers have enough taxable income to benefit from larger deductions or exemptions, whereas lower-income households often have little federal income tax liability to begin with.
For now, these tax plans are just proposals, and they would need broad political support to move forward. But ahead of the 2026 midterm elections, both proposals signal the direction Democrats want to take on tax policy.
Americans are turning to AI for all kinds of advice these days, and that includes money advice.
This makes sense. Professional advice is expensive, especially when someone just wants to know, “Am I saving enough money for the future?” or “Should I pay off debt before investing?” AI is readily available, we don’t have to fear it judging us, and it can explain complicated concepts in plain English. That’s a good starting point.
But the key phrase here is starting point. Here’s a look at what AI does well in terms of personal finance advice and where you need to be careful.
One of the ways AI can be most useful for personal finances is helping people understand how money moves in and out of their accounts. Many financial apps now connect to bank accounts and credit cards. Instead of manually tracking every purchase, these systems can automatically sort transactions into categories like groceries, dining, utilities, and entertainment.
And spending patterns soon become clear.
AI tools can flag spending trends that might be easy to miss. When the information is presented plainly, it becomes easier to adjust spending habits.
Some apps also send alerts when bills are due or when balances fall below a certain level, which can help people avoid late fees or overdraft charges.
Budgeting apps can suggest spending limits based on past spending habits. Instead of guessing how much money to allocate to expenses like groceries or gas, the apps calculate estimates based on actual spending history.
Saving tools have also improved. Some apps review income, recurring bills, and spending patterns to estimate how much money you can safely move into savings for the month. Some systems even automate the transfers. For those who struggle to save consistently, this kind of automation can be a major help.
AI is becoming a popular tool for people who want to understand financial topics or compare options. For example, someone thinking about opening a balance transfer credit card to consolidate debt might ask AI to compare interest rates, annual fees, and rewards programs.
The same goes for larger decisions like different mortgage types, retirement accounts, or insurance policies. AI can break down the pros and cons in seconds.
AI should not have the final say in your decisions, but it can help you understand your choices clearly and faster.
AI tools are proving useful for initial research, but they raise legitimate concerns about data privacy. Many financial platforms require access to sensitive personal information, such as bank account balances, transactions, and income details. For this reason, always review how a company handles personal data before connecting any accounts. Look for strong encryption, clear privacy policies, and transparent explanations of how information is stored and shared.
Accuracy is another issue. AI relies on data and patterns, and they can sometimes misinterpret information. Financial situations are highly personal and sometimes complex. An AI-generated suggestion or overview likely won’t fit every person’s unique circumstances.
AI can organize information and explain financial concepts. It can also point out possible strategies. But financial decisions should still reflect personal goals, individual timelines, and risk tolerance.
And sometimes professional advice is needed.
Financial experts and tax advisors bring experience that software can’t fully replicate. AI can help you prepare better questions for those conversations, but it shouldn’t replace them.
Personal finance will always involve a lot of moving parts. Income, bills, debt, savings goals, and investments are all pieces on the financial chess board. It can be a lot, and it can get confusing. AI is helping Americans see the pieces more clearly.
When it comes to planning for retirement, most couples can agree to save as much as possible. But when each spouse focuses on their own 401(k), without thinking much about how the two plans work together, they could miss out on valuable employer matching money. Here’s why coordinating 401(k) plans matters.
When each spouse has a workplace 401(k), the two plans likely aren’t identical. For instance, one employer might match 100% of your first 4% of contributions. Another employer might match 50% of the first 6%. Those differences might sound small, but they add up fast.
Research suggests that couples who don’t pay attention to the difference in company matches could miss out on roughly $14,000 in retirement savings over their lifetime.
Employer matching contributions are one of the best benefits a job can offer. When you contribute to your retirement account, your employer adds money to that account. That’s as close to free money as it gets.
But to take full advantage, you need to know the rules of each plan. And then you need to decide together where contributions should go first.
Say your employer matches 100% on the first 3% of your salary. Your spouse’s employer matches 50% on the first 4%. The smart move is to make sure the spouse with the 100% match contributes enough to capture the full benefit. After that, shift focus to the other plan.
This kind of adjustment just requires being intentional about where the money goes.
How many couples sit down together and ask, “Which of our 401(k)s gives us the better deal?” Each person typically handles their own benefit enrollment, their own contribution rate, and their own plan. Often, the two 401(k)s are never really compared.
Over time, one spouse might be leaving employer-matched money unclaimed while the other might be over-contributing to a plan with a weaker match. The key is to look at the full picture together.
The communication fix? Set aside time a couple of times a year to review finances and retirement accounts together. Call it a money date or a finance check-in, whatever makes it feel approachable and not like a chore. It doesn’t need to be complicated or stressful.
Here are the basics to cover:
If there’s one thing to depend on in life, it’s change. A new job might come with a better 401(k) match. A raise might make it easier to increase contributions. These life changes are worth catching early so you can adjust your strategy while it makes the biggest difference.
Retirement planning is about making sure every dollar is working effectively toward your goals. And the employer match is one of the easiest ways to get more out of what you’re already contributing.
The One Big Beautiful Bill (OBBB) delivers several retroactive and expanded tax breaks for 2025 that could lower your tax bill in a significant way. Here are the deductions and credits that could save their business money.
Section 179 lets you deduct the full cost of qualifying equipment and property in the year you buy it, instead of spreading the deduction over several years. For 2025, the deduction limit increased, making it easier for business owners to write off vehicles, machinery, computers, and other assets immediately.
Bonus depreciation allows businesses to deduct a large percentage of an asset’s cost in the first year. A phase-down rate was scheduled under a previous law, but the OBBB reinstated 100% bonus depreciation rates for property placed in service after January 19, 2025. Combined with Section 179, this can significantly reduce taxable income for companies investing in machinery, vehicles, or technology.
Before 2025, research and development costs had to be amortized over five years. The OBBB brought back immediate expensing for R&D costs.
If your business invests in developing new products, software, or processes, you can now deduct those expenses in full right away. Additionally, businesses with costs in 2022, 2023, and 2024 can file amended returns for refunds.
The Qualified Business Income (QBI) deduction continues to allow eligible owners of pass-through entities, such as S corporations, partnerships, and sole proprietorships, to deduct up to 20% of qualified business income.
The deduction now phases out at higher income levels. And beginning this year, there is a minimum QBI deduction of $400 for businesses with at least $1,000 of QBI.
The OBBB eased restrictions on deducting business interest expenses. Previously, many businesses faced limitations based on their earnings. The expanded rules make it easier to deduct interest on business loans and lines of credit.
Good news for gig workers and small online sellers: the $600 reporting threshold for payment platforms is gone. Instead, the reporting requirement reverts to the previous rule: more than $20,000 in gross payments and over 200 transactions.
Several changes may also benefit small business owners personally and their employees
These tax breaks only help if you use them, so work with a tax professional to make sure you’re claiming everything you’re entitled to.
If you’ve inherited an IRA in recent years, you should be aware that the SECURE Act, passed in 2019, changed how many beneficiaries need to handle this inheritance. What used to be a generous benefit that could last decades now comes with a strict deadline that can become a tax headache without proper planning. If you inherited an IRA prior to 2020, you’re still covered under the old rules. But for those who inherited an IRA after 2020, here’s what you need to know.
If you inherit an IRA from someone other than your spouse, you’ll likely face the 10-year rule.
In the past, most non-spouse beneficiaries could spread withdrawals over their lifetime, allowing the account to grow longer. This was called a “stretch IRA.” The SECURE Act largely eliminated that option for most heirs, now requiring them to withdraw all assets within the account by the end of the 10th year following the original owner’s death.
There’s no penalty for waiting until year 10 to withdraw everything at once, but that strategy often backfires. It could push you into a higher tax bracket and create a tax nightmare. Instead, spread withdrawals across the 10 years to manage your tax burden. It’s a smart idea to work with a tax professional who can help you figure out the timing that makes sense for your situation.
The SECURE Act carved out exceptions for certain beneficiaries, called “eligible designated beneficiaries.” These beneficiaries are still allowed to take distributions over their life expectancy. They include:
Among these beneficiaries, a surviving spouse has the most freedom with the account. They can roll the inherited IRA into their existing IRA or take distributions based on life expectancy. This gives them more control over the timing and tax impact.
Minor children can stretch withdrawals only until age 21, at which point the 10-year clock begins.
The change in the SECURE Act was designed to generate more tax revenue faster, but it created planning challenges for many beneficiaries.
For instance, with a traditional IRA, you pay taxes on withdrawals. If you’re still in the workforce and you’re forced to add IRA withdrawals on top of your income, you could end up getting pushed into a higher tax bracket.
If you’re subject to the 10-year rule, consider spreading withdrawals evenly across multiple years. This can help manage your tax bracket.
Additional smart moves to think about include taking larger withdrawals in years when income is lower, coordinating withdrawals with retirement or a career change, and working with a tax professional who can advise you on the best path forward.
The 10-year rule means less flexibility and a greater risk of higher taxes, so planning and timing are everything. The deadline might be a decade away, but the tax implications begin the moment you inherit an IRA.
Keeping an open line of communication is important to us. We invite you to reach out to us either by phone, email, or this form to ask questions, request an appointment or talk about any finance-related matter that comes to your mind.
317-398-9753
8 Public Square
Shelbyville, IN, 46176
