Blog - Linkenheimer LLP CPAs & Advisors

Increase Your Current Business Deductions Under Tangible Property Safe Harbors

Did your business make repairs to tangible property, such as buildings, equipment or vehicles, in 2025? Such costs may be fully deductible on your 2025 income tax return — if they weren’t actually for “improvements” that must be depreciated over a period of years.

Betterment, restoration or adaptation

In general, a cost that results in an improvement to a building structure or any of its building systems (for example, the plumbing or electrical system) or to other tangible property must be capitalized, with depreciation deductions spread over a few years or longer (depending on depreciation method and property type). An improvement occurred if there was a betterment, restoration or adaptation of the unit of property.

Under the “betterment test,” you generally must capitalize amounts paid for work that’s reasonably expected to materially increase the productivity, efficiency, strength, quality or output of a unit of property or that’s a material addition to a unit of property.

Under the “restoration test,” you generally must capitalize amounts paid to replace a part (or combination of parts) that is a major component or a significant portion of the physical structure of a unit of property.

Under the “adaptation […]

By Linkenheimer LLP|2026-02-16T20:43:40+00:00February 16th, 2026|business, deductions|0 Comments

Before Claiming a Charitable Deduction for 2025, Make Sure You Can Substantiate It

If you itemize deductions on your 2025 individual income tax return, you potentially can deduct donations to qualified charities you made last year. But your gifts must be substantiated in accordance with IRS requirements. Exactly what’s required depends on various factors. In some cases, you must have a written acknowledgment from the charity.

Substantiating cash donations

If you made a cash gift of under $250, documentation such as a canceled check, bank statement or credit card statement is adequate. However, if you received something in return for the donation, you generally must reduce your deduction by its value — and you must have received a “contemporaneous written acknowledgment” from the charity.

Likewise, for a donation of $250 or more, you must obtain such an acknowledgment. In it, the charitable organization must state the amount of the donation, whether you received any goods or services in consideration for the donation and, if you did, the value of those goods or services.

The “contemporaneous” requirement can sometimes trip up taxpayers. It means the earlier of:

The date you file your tax return, or
The due date of your return, including extensions.

Therefore, if you made a donation last year that requires […]

By Linkenheimer LLP|2026-02-16T20:19:03+00:00February 16th, 2026|charity, deduction, deductions|0 Comments

Some Small Businesses Can Still Benefit from the Health Care Coverage Credit

Tax credits reduce tax liability dollar-for-dollar. As a result, they can be more valuable than deductions, which reduce only the amount of income subject to tax. One tax credit that hasn’t been getting much attention lately but that can still be valuable for some small businesses is the credit for providing health insurance to employees.

Who’s eligible?

Under the Affordable Care Act (ACA), certain small employers that provide employees with health care coverage are eligible for this tax credit. Although it’s been available for more than a decade and generally can be claimed for only two years, some small businesses may still be eligible. These may include newer businesses as well as older ones that only recently have begun offering health insurance.

The maximum credit is 50% of group health coverage premiums paid by the employer, if it contributes at least 50% of the total premium or of a benchmark premium. For 2025, the full credit is available for employers with 10 or fewer full-time equivalent employees (FTEs) and average annual wages of $33,300 or less per employee. Partial credits are available on a sliding scale to businesses with fewer than 25 […]

By Linkenheimer LLP|2026-02-16T20:14:31+00:00February 16th, 2026|business, Health care, tax credit|0 Comments

Construction Tax Planning Starts with Your Accounting Method

Construction company owners operate in one of the most complex business environments of any industry. Long-term contracts, retainage, fluctuating job costs, labor constraints, and uneven cash flow all affect how a company is managed day to day and how income must be reported for tax purposes—often in ways that feel disconnected from the cash actually available to run the business. Choosing the right accounting method is not simply a compliance decision; it directly impacts taxable income, estimated tax payments, IRS scrutiny, and long-term tax planning. Financial statements, bonding requirements, and tax planning are all interconnected for construction companies, and the accounting method sits at the center—shaping when income is taxed and how the business can plan and grow.

Cash Method
Under the cash method, income is reported when payments are received and expenses are deducted when paid. This method is common for smaller contractors because it generally aligns taxable income with cash flow and is simpler to maintain. However, it can produce inconsistent tax results on longer projects and is no longer permitted once a contractor exceeds certain IRS gross receipt thresholds. For tax years beginning in 2026, that threshold is $32 million, […]

By Linkenheimer LLP|2026-02-10T22:12:42+00:00February 10th, 2026|accounting, Advisor|0 Comments

The Great Hardware Squeeze: What Rising Tech Costs Mean for Your Business (And Your Budget)

Remember when you could order a new laptop and have it show up in a week without breaking a sweat—or your budget? Those days are feeling increasingly like a distant memory.

If you’ve tried to purchase computers, upgrade servers, or even just buy some additional RAM for your business lately, you’ve probably noticed something: prices are climbing. Fast. And unlike past tech price fluctuations, this one has some staying power behind it. Let’s unpack what’s happening, why it matters to your business, and what you can actually do about it.

What’s Driving the Price Surge?

Two major forces have collided to create what industry analysts are calling a “Component Cost Super-Cycle.” Think of it as the perfect storm, except instead of rain, it’s dollar signs pouring out of your IT budget.

The AI Appetite is Insatiable

Here’s the twist nobody saw coming: artificial intelligence isn’t just changing how we work—it’s fundamentally reshaping the hardware supply chain. The massive data centers powering AI models like ChatGPT, Google’s Gemini, and countless enterprise tools […]

By Linkenheimer LLP|2026-01-27T15:08:31+00:00January 27th, 2026|AI, business, Tech, technology|0 Comments