Blog - Linkenheimer LLP CPAs & Advisors

Do You Have an Excess Business Loss?

If an individual taxpayer has substantial business losses, unfavorable federal income tax rules can potentially come into play. Here’s what you need to know as you assess your 2024 tax situation.

Disallowance rule

The tax rules can get complicated if your business or rental activity throws off a tax loss — and many do during the early years. First, the passive activity loss (PAL) rules may apply if you aren’t very involved in the business or if it’s a rental activity. The PAL rules generally only allow you to deduct passive losses to the extent you have passive income from other sources. However, you can deduct passive losses that have been disallowed in previous years (called suspended PALs) when you sell the activity or property that produced the suspended losses.

If you successfully clear the hurdles imposed by the PAL rules, you face another hurdle: You can’t deduct an excess business loss in the current year. For 2024, an excess business loss is the excess of your aggregate business losses over $305,000 ($610,000 for married joint filers). For 2025, the thresholds are $313,000 and $626,000, respectively. An excess business loss is carried over to the […]

By Linkenheimer LLP|2025-02-21T15:21:19+00:00February 21st, 2025|business, tax planning|0 Comments

BOI Enforcement Resumes; New Filing Deadline Set

We wish to inform you of a significant development regarding the Corporate Transparency Act (CTA), which mandates that certain business entities disclose their beneficial ownership information (BOI) to the Financial Crimes Enforcement Network (FinCEN).

Background

The CTA, enacted in 2021, aims to combat illicit financial activities by requiring companies to report their true ownership, thereby preventing the misuse of anonymous shell companies.

Recent Developments

In January 2025, enforcement of BOI was temporarily halted due to a nationwide injunction issued by a federal judge in Texas. However, as of February 18, 2025, this injunction has been lifted, reinstating BOI’s reporting requirements. In response, FinCEN has extended the filing deadline for most companies to March 21, 2025, acknowledging that businesses may need additional time to comply.

Who Is Affected?

The BOI’s reporting requirements apply to a wide range of entities, including corporations, limited liability companies, and other similar entities registered in the United States. Certain exemptions exist, such as for larger companies with more than 20 employees and over $5 million in annual revenue.

Action Steps

Assess Applicability: Determine whether your entity falls under the BOI’s reporting requirements.
Prepare Information: Gather necessary details about your beneficial owners, including full legal names, […]

By Linkenheimer LLP|2025-02-19T23:02:21+00:00February 19th, 2025|filing deadline, New Tax Laws|0 Comments

Try IRS’s Online Tools for Immediate Assistance

With the busiest time in the tax filing season approaching, the IRS is reminding taxpayers of the online tools available at IRS.gov to get immediate answers. Various options are available at the Let us help you page that include information on filing a tax return, letters from the IRS, tax transcripts, refund status, and more. Self-service options are available at the Tools page where taxpayers can get free help online. Some taxpayers may file their tax returns for free by going to the File your taxes for free page. Step-by-step help for filing a tax return is provided at How to file your taxes: Step by step. Also, individuals with social security numbers or individual taxpayer identification numbers (ITIN) can create (or securely access) their Individual Online Account where they can access their tax records, view, approve and sign authorizations from their tax professional, check refund status, make payments, etc. If you have questions or need assistance, please dont hesitate to reach out to your Linkenheimer CPA.

By Linkenheimer LLP|2025-02-19T21:06:09+00:00February 19th, 2025|irs|0 Comments

Honoring the Legacy of R. John Jones: A Beacon of Leadership and Service at Linkenheimer LLP

The Retirement of Managing Partner R. John Jones

As Linkenheimer LLP approaches a significant transition, we honor the remarkable career of our Managing Partner, R. John Jones, who will retire in July 2025. John’s journey with our firm began in May 1977, immediately after graduating with honors and distinction from Sonoma State University. He became a partner in January 1983 and assumed the role of Managing Partner in July 1986. Over nearly five decades, John’s visionary leadership and unwavering commitment have been instrumental in shaping the firm’s success and fostering a culture of excellence, collaboration and trust.

A Pillar of Professional Excellence

Throughout his tenure, John has exemplified professional excellence and relationships, guiding clients through complex financial landscapes. His expertise encompasses forecasting, budgeting, feasibility studies, mergers and acquisitions, lender financing, succession planning, compensation planning, along with income and estate tax planning. John’s strategic insights and dedication have been invaluable to our clients and have set a high standard within the accounting profession.

Championing Community and Global Service

John’s impact extends far beyond the office. A native of Sonoma County, he has been deeply involved in the local […]

By Linkenheimer LLP|2025-02-10T20:20:35+00:00February 7th, 2025|Uncategorized|0 Comments

Looking Ahead to 2025 Tax Limits as You Prepare to File Your 2024 Return

Chances are, you’re more concerned about your 2024 tax return right now than you are about your 2025 tax situation. That’s understandable because your 2024 individual tax return is due to be filed by April 15 (unless you file for an extension).

However, it’s a good time to familiarize yourself with tax amounts that may have changed for 2025 due to inflation. Not all tax figures are adjusted annually for inflation, and some amounts only change when Congress passes new laws.

In addition, there may be tax changes due to what’s happening in Washington. With Republicans in control of both the White House and Congress, we expect major tax law changes in the coming months. With that in mind, here are some Q&As about 2025 tax limits.

I haven’t been able to itemize deductions on my last few tax returns. Will I qualify for 2025?

Beginning in 2018, the Tax Cuts and Jobs Act eliminated the ability to itemize deductions for many people by increasing the standard deduction and reducing or eliminating various deductions. For 2025, the standard deduction amount is $30,000 for married couples filing jointly (up from $29,200 in 2024). For single […]

By Linkenheimer LLP|2025-02-06T20:28:14+00:00February 6th, 2025|2025, deduction, deductions, New Tax Laws, News|0 Comments