News - Linkenheimer LLP CPAs & Advisors

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The One, Big Beautiful Bill Act (OBBBA) contains a major overhaul to an outdated IRS requirement.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

Act soon: The OBBBA Ends Clean Energy Tax Breaks

The newly enacted One, Big, Beautiful Bill Act (OBBBA) represents a major move by President Trump and congressional Republicans to roll back a number of clean energy tax incentives originally introduced or expanded under the Inflation Reduction Act (IRA). Below is a summary of the key individual tax credits that will soon be scaled back or eliminated.

Clean vehicle tax credits

If you’re planning to buy a clean vehicle, consider acting soon to take advantage of expiring tax benefits:

New clean vehicle credit. This credit offers up to $7,500 for qualifying new electric and fuel cell vehicles, depending on how the battery components and critical minerals are sourced. Vehicles that meet only one of the sourcing criteria may be eligible for a reduced $3,750 credit. Originally set to expire in 2032, this credit now ends on September 30, 2025.

The maximum manufacturer’s suggested retail price is $55,000 for cars and $80,000 for SUVs, trucks and vans. To qualify, your adjusted gross income (AGI) must not exceed $150,000 ($300,000 for married couples filing jointly and $225,000 for heads of households).

Used clean vehicle credit. Buyers of eligible used EVs or fuel cell vehicles may claim up to […]

By Linkenheimer LLP|2025-08-13T12:44:20+00:00August 13th, 2025|credit, energy, EV, New Tax Laws, News|0 Comments

A Closer Look: The QBI Deduction and What’s New in the One, Big, Beautiful Bill Act

The qualified business income (QBI) deduction, which became effective in 2018, is a significant tax benefit for many business owners. It allows eligible taxpayers to deduct up to 20% of QBI, not to exceed 20% of taxable income. It can also be claimed for up to 20% of income from qualified real estate investment trust dividends.

With recent changes under the One, Big, Beautiful Bill Act (OBBBA), this powerful deduction is becoming more accessible and beneficial. Most important, the OBBBA makes the QBI deduction permanent. It had been scheduled to end on December 31, 2025.

A closer look

QBI is generally defined as the net amount of qualified income, gain, deduction and loss from a qualified U.S. trade or business. Taxpayers eligible for the deduction include sole proprietors and owners of pass-through entities, such as partnerships, S corporations and limited liability companies that are treated as sole proprietorships, partnerships or S corporations for tax purposes. C corporations aren’t eligible.

Additional limits on the deduction gradually phase in if 2025 taxable income exceeds the applicable threshold — $197,300 or $394,600 for married couples filing joint tax returns. The limits fully apply when 2025 taxable income exceeds $247,300 […]

By Linkenheimer LLP|2025-08-05T14:15:17+00:00August 5th, 2025|business, deduction, deductions, New Tax Laws, News|0 Comments

Linkenheimer is Excited to Announce Anya Cunningham as the Firm’s Newest Partner

Linkenheimer LLP is proud to announce the promotion of Anya Cunningham to Partner. Since launching her public‑accounting career in 2007 and joining our firm in 2012, Anya has guided closely held businesses in manufacturing, construction, agriculture, distribution, and professional services through critical moments—business transitions, capital planning, financial modeling, and succession strategy. A co‑founder of the North Bay Trusted Business Academy, she is passionate about equipping entrepreneurs with holistic education and advisory support. Looking ahead, Anya sees AI and automation “taking over more routine compliance work,” freeing CPAs to deliver the real‑time insights and proactive planning clients will demand over the next five years.

Anya’s “secret sauce” is intentional listening: understanding each client’s goals, pressures, and aspirations before diving into technical solutions. She believes the profession’s future hinges on pattern recognition—spotting trends in numbers, industries, and people early enough to turn risks into opportunity. “We’re not just scorekeepers,” she says, echoing how she explained a CPA’s value to her soccer‑loving 10‑year‑old son: “We help people win the game.” Known for owning mistakes quickly and turning them into learning moments, Anya will foster a culture of […]

By Linkenheimer LLP|2025-07-29T13:12:48+00:00July 29th, 2025|firm, News|0 Comments

California SB 132 Extends the Pass-Through Entity Elective Tax — and Changes the Rules

On June 27, 2025, Governor Newsom signed Senate Bill 132 (the 2025-26 budget trailer bill) into law. The measure delivers several tax changes, but the headline for S-corporations, partnerships, and LLCs is a five-year extension — with new twists — for California’s Pass-Through Entity Elective Tax (PTE).

PTE Quick Refresher: The Pass-Through Entity Tax lets your S-corp, partnership, or LLC pay California tax at the entity level. Why does this matter? It converts state income taxes (limited by the federal SALT cap) into a fully deductible business expense at the federal level. With the federal SALT cap temporarily raised to $40,000 (for most taxpayers) through 2029, then reverting to $10,000 in 2030, the PTE election remains a valuable planning tool — especially for owners with significant state tax liabilities.

What SB 132 Means for Pass-Through Owners

PTE election extended through 2030: Qualifying entities may continue making the California PTE election for tax years 2026–2030, preserving valuable federal tax benefits for owners regardless of federal SALT cap changes.

June 15 prepayment no longer “all-or-nothing”: Missing or underpaying the mid-June deposit will not disqualify your election after 2025. Instead, each owner’s PTE credit gets reduced by 12.5% of any shortfall. Translation? […]

By Linkenheimer LLP|2025-07-18T22:02:29+00:00July 18th, 2025|ca, CA tax, california, New Tax Laws, News, pte|0 Comments