business - Linkenheimer LLP CPAs & Advisors

There’s Still Time for Businesses to Benefit from Clean Energy Tax Breaks

The One Big Beautiful Bill Act (OBBBA), signed into law July 4, 2025, extends or enhances many tax breaks for businesses. But the legislation terminates several business-related clean energy tax incentives earlier than scheduled. For example, the Qualified Commercial Clean Vehicle Credit (Section 45W) had been scheduled to expire after 2032. Under the OBBBA, it’s available only for vehicles that were acquired on or before September 30, 2025. For other clean energy breaks, businesses can still take advantage of them if they act soon.

Deduction for energy-efficient building improvements

The Section 179D deduction allows owners of new or existing commercial buildings to immediately deduct the cost of certain energy-efficient improvements rather than depreciate them over the 39-year period that typically applies. The OBBBA terminates the Sec. 179D deduction for property beginning construction after June 30, 2026.

Besides commercial building owners, eligible taxpayers include:

Tenants and real estate investment trusts (REITs) that make qualifying improvements, and
Certain designers — such as architects and engineers — of government-owned buildings and buildings owned by nonprofit organizations, religious organizations, tribal organizations, and nonprofit schools or universities.

The Sec. 179D deduction is available for new construction as well as additions to or […]

By Linkenheimer LLP|2025-10-13T19:50:40+00:00October 13th, 2025|business, energy, New Tax Laws, tax credit|0 Comments

The 2025–2026 “High-Low” Per Diem Business Travel Rates are Here

If you have employees who travel for business, you know how frustrating it can be to manage reimbursements and the accompanying receipts for meals, hotels and incidentals. To make this process easier, consider using the “high-low” per diem method. Instead of tracking every receipt, your business can reimburse employees using daily rates that are predetermined by the IRS based on whether the destination is a high-cost or low-cost location. This saves time and reduces paperwork while still ensuring compliance. In Notice 2025-54, the IRS announced the high-low per diem rates that became effective October 1, 2025, and apply through September 30, 2026.

How the per diem method works

The per diem method provides fixed travel per diems rather than requiring employees to save every meal receipt or hotel bill. Employees simply need to document the time, place and business purpose of their trip. As long as reimbursements don’t exceed the applicable IRS per diem amounts, they aren’t treated as taxable income to the employee and don’t require income or payroll tax withholding.

Under the high-low method, the IRS establishes an annual flat rate for certain areas with higher costs. All locations within the continental United […]

By Linkenheimer LLP|2025-10-13T17:48:36+00:00October 13th, 2025|business, travel|0 Comments

Tax Court Case Provides Lessons on Best Recordkeeping Practices for Businesses

Running a successful business requires more than delivering great products or services. Behind the scenes, meticulous recordkeeping plays a crucial role in financial health, compliance and tax savings. Good records can mean the difference between successfully defending a deduction and losing valuable tax breaks. A recent U.S. Tax Court decision underscores just how important this is.

Why it matters

The IRS requires all businesses — no matter how small — to maintain records that accurately reflect income, expenses, assets and liabilities. Without these records, it’s nearly impossible to:

Substantiate tax deductions and credits,
Track cash flow and profitability,
Prepare accurate financial statements,
Monitor the progress of your business,
Support decisions for financing, and
Demonstrate compliance during an IRS audit.

In short, strong recordkeeping protects your business, both for operational and tax law purposes.

Taxpayer loses deductions due to insufficient records

In one case, a union power‐line worker also had business interests in a storm response partnership, a salon and a rental property. He claimed significant losses and business expenses on his return for the year in question. Among his claimed deductions were partnership losses and expenses for tools, clothing and travel.

In Tax Court Memo […]

By Linkenheimer LLP|2025-10-01T16:08:27+00:00October 1st, 2025|business, tax planning, Tech|0 Comments

Business Meals — What’s Still on the Menu After 2025

Starting in 2026, the tax treatment of business meals changes dramatically. Under the Tax Cuts and Jobs Act (TCJA), employer-provided meals for the “convenience of the employer” including de minimis fringe benefit were limited to a 50% deduction. Unlike many other provisions that were extended or made permanent by the One Big, Beautiful Bill Act (OBBBA), this one wasn’t renewed. That means beginning in 2026, the deduction for these meals drops all the way to 0% at the federal level.

In plain terms: that stack of takeout boxes in the breakroom may keep your team happy, but it won’t trim your tax bill.

The big change: convenience meals lose their bite

Currently, meals provided by employers for their convenience and de minimis fringe benefit “meals” such as coffee, sodas, doughnuts etc.— qualify for a 50% deduction. Beginning in 2026, those expenses will no longer be deductible for federal tax purposes.

The exceptions: The restaurant industry can continue deducting employee meal expenses for kitchen and waitstaff and Crews of certain commercial vessels, oil platform/drilling rig workers, and of certain fishing vessels and processing facilities can continue to be 50% deductible.

California doesn’t play by the same rules

Here’s where things get tricky: California […]

By Linkenheimer LLP|2025-08-25T19:29:58+00:00August 20th, 2025|business, deduction, New Tax Laws|0 Comments

The New Law Includes a Game-Changer for Business Payment Reporting

The One, Big Beautiful Bill Act (OBBBA) contains a major overhaul to an outdated IRS requirement. Beginning with payments made in 2026, the new law raises the threshold for information reporting on certain business payments from $600 to $2,000. Beginning in 2027, the threshold amount will be adjusted for inflation.

The current requirement: $600 threshold

For decades, the IRS has required that businesses file Form 1099-NEC (previously 1099-MISC) for payments made to independent contractors that exceed $600 in a calendar year. This threshold amount has remained unchanged since the 1950s!

The same $600 threshold is in place for Forms 1099-MISC, which businesses file for several types of payments, including prizes, rents and payments to attorneys.

Certain deadlines must be met. A Form 1099-NEC must be filed with the IRS by January 31 of the year following the year in which a payment was made. A copy must be sent to the recipient by the same January 31 deadline.

A Form 1099-MISC must also be provided to a recipient by January 31 of the year following a payment, but unlike Form 1099-NEC, the 1099-MISC deadline for the IRS depends on how it’s submitted. If a business is filing […]

By Linkenheimer LLP|2025-08-13T13:35:02+00:00August 13th, 2025|1099, business, New Tax Laws, News|0 Comments