Blog - Linkenheimer LLP CPAs & Advisors

Checking Off RMDs on the Year-End To-Do List

You likely have a lot of things to do between now and the end of the year, such as holiday shopping, donating to your favorite charities and planning get-togethers with family and friends. For older taxpayers with one or more tax-advantaged retirement accounts, as well as younger taxpayers who’ve inherited such an account, there may be one more thing that’s critical to check off the to-do list before year end: Take required minimum distributions (RMDs).

Why is it important to take RMDs on time?

When applicable, RMDs usually must be taken by December 31. If you don’t comply, you can owe a penalty equal to 25% of the amount you should have withdrawn but didn’t.

If the failure is corrected in a “timely” manner, the penalty drops to 10%. But even 10% isn’t insignificant. So it’s best to take RMDs on time to avoid the penalty.

Who’s subject to RMDs?

After you reach age 73, you generally must take annual RMDs from your traditional (non-Roth):

IRAs, and
Defined contribution plans, such as 401(k) plans (unless you’re still an employee and not a 5%-or-greater shareholder of the employer sponsoring the plan).

An RMD deferral is available […]

By Linkenheimer LLP|2025-12-10T17:30:09+00:00December 10th, 2025|year-end|0 Comments

New Law Eases the Limitation on Business Interest Expense Deductions for 2025 and Beyond

Interest paid or accrued by a business is generally deductible for federal tax purposes. But limitations apply. Now some changes under the One Big Beautiful Bill Act (OBBBA) will result in larger deductions for affected taxpayers.

Limitation basics

The deduction for business interest expense for a particular tax year is generally limited to 30% of the taxpayer’s adjusted taxable income (ATI). That taxpayer could be you or your business entity, such as a partnership, limited liability company (LLC), or C or S corporation. Any business interest expense that’s disallowed by this limitation is carried forward to future tax years.

Business interest expense means interest on debt that’s allocable to a business. For partnerships, LLCs that are treated as partnerships for tax purposes, and S corporations, the limitation on the business interest expense deduction is applied first at the entity level and then at the owner level under complex rules.

The limitation on the business interest expense deduction is applied before applying the passive activity loss (PAL) limitation rules, the at-risk limitation rules and the excess business loss disallowance rules. For pass-through entities, those rules are applied at the owner level. But the limitation on the business interest expense […]

By Linkenheimer LLP|2025-12-10T17:26:18+00:00December 10th, 2025|business, deduction, deductions, New Tax Laws|0 Comments

There’s Still Time to Save 2025 Taxes

Just because it’s December doesn’t mean it’s too late to reduce your 2025 tax liability. Consider implementing one or more of these year-end tax-saving ideas by December 31.

Defer income and accelerate deductions

Pushing income into the new year will reduce this year’s taxable income. If you’re expecting a bonus at work, for example, ask if your employer can hold off on paying it until January. If you’re self-employed, you can delay sending invoices so that they won’t be paid until January and thus postpone the revenue to 2026.

If you itemize deductions, remember that deductions generally are claimed for the year of payment. So, if you make your January 2026 mortgage payment in December, you can deduct the interest portion on your 2025 tax return. Similarly, if you’ve received your 2026 property tax assessment and pay it by December 31, you can claim it on your 2025 return (provided your total state and local taxes don’t exceed the applicable limit).

But don’t follow this approach if you expect to be in a higher tax bracket next year. Also, if you’re eligible for the qualified business income deduction for pass-through entities, consider how this approach might affect […]

By Linkenheimer LLP|2025-12-10T17:22:24+00:00December 10th, 2025|deduction, deductions, tax planning, year-end|0 Comments

California Employers: CalSavers Deadline is December 31, 2025

If you’re a California employer with at least one W-2 employee and you don’t already offer a qualified retirement plan, you’re required to either register for CalSavers or claim an exemption by December 31, 2025. CalSavers is the state-sponsored IRA program that allows employees to save for retirement through payroll deductions. Alternatively, you can satisfy the requirement by offering your own qualified retirement plan such as a 401(k), SEP, or SIMPLE IRA.

Not sure if this applies to you? You’re exempt if you’re a sole proprietor or business with no W-2 employees other than the owners, if you already sponsor a qualified retirement plan, or if you’re a government entity, religious organization, or tribal organization. If you’re exempt, you should still submit an exemption request to avoid receiving compliance notices.

If you’re not exempt, take action now. Businesses that don’t comply risk fines of $250 per employee if noncompliance extends 90 days or more after receiving a notice, and an additional $500 per employee if noncompliance continues past 180 days. Register or claim your exemption at employer.calsavers.com. Have questions about whether CalSavers or a […]

By Linkenheimer LLP|2025-12-03T20:54:18+00:00December 3rd, 2025|business, ca, california, employer|0 Comments

Individual Q4 Estimated Tax Payment Reminder: January 15, 2026 Deadline

If you make quarterly estimated tax payments, mark your calendar: the final due date is January 15, 2026, which applies to income earned in the fourth quarter of 2025. This applies to self-employment income, investment earnings, rental income, capital gains, and any other income not subject to regular withholding. Year-end surprises like bonuses, stock dividends, or crypto gains may also require a payment.

Don’t forget about state estimated taxes. Most states that impose income tax also require quarterly estimated payments, and many follow the same January 15 deadline as the IRS—but not all. Check your state’s requirements to avoid unexpected penalties when you file.

The IRS strongly encourages electronic payment. You may pay online using IRS Direct Pay, the Electronic Federal Tax Payment System (EFTPS), or by using a credit card, debit card, or digital wallet. (Internal Revenue Service) These options give you instant confirmation and eliminate mail delays. Missing this deadline can trigger underpayment penalties when you file your 2025 return.

Questions about what you owe or whether you need to make a payment? Give us a call before year-end so we can help you […]

By Linkenheimer LLP|2025-12-03T21:17:59+00:00December 3rd, 2025|deadline, estimated tax payments|0 Comments