year-end - 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 If you don’t comply, you can owe a penalty equal to 25% of the amount you should have withdrawn but didn’t.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

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

2025 in Review: Lessons Learned and Setting the Stage for 2026

As 2025 draws to a close, it’s clear this has been a year of both opportunity and complexity. At Linkenheimer LLP, we’ve seen clients across all industries navigate evolving tax rules, shifting market conditions, and tighter reporting demands. These changes underscore one truth we’ve always believed: proactive financial management — not reactive compliance — is what drives lasting success.

This year, the conversation wasn’t just about filing returns or meeting reporting deadlines. It was about maintaining high-quality financial data, understanding where your business stands in real time, and planning strategically amid uncertainty.

Key Trends We Saw in 2025

Growing Focus on Data Integrity and Financial Readiness

Clean, accurate, and timely financial information proved to be a differentiator this year. With credit conditions tightening and lenders requesting more granular reporting, companies with well-organized accounting systems and reconciled statements had a clear advantage.

Financial institutions increasingly required interim financials and management-prepared statements to support credit renewals.
Auditors and stakeholders placed greater emphasis on documentation quality, accounting estimates, and revenue recognition policies under GAAP.
Businesses that invested in cloud-based accounting systems, automation, and standardized chart of accounts found it easier to analyze performance and make informed […]

By Linkenheimer LLP|2025-10-27T21:40:54+00:00October 27th, 2025|Advisor, year-end|0 Comments

Review Your Business Expenses Before Year End

Now is a good time to review your business’s expenses for deductibility. Accelerating deductible expenses into this year generally will reduce 2025 taxes and might even provide permanent tax savings. Also consider the impact of the One Big Beautiful Bill Act (OBBBA). It makes permanent or revises some Tax Cuts and Jobs Act (TCJA) provisions that reduced or eliminated certain deductions.

“Ordinary and necessary” business expenses

There’s no master list of deductible business expenses in the Internal Revenue Code (IRC). Although some deductions are expressly authorized or excluded, most are governed by the general rule of IRC Section 162, which permits businesses to deduct their “ordinary and necessary” expenses.

An ordinary expense is one that is common and accepted in your industry. A necessary expense is one that is helpful and appropriate for your business. (It doesn’t have to be indispensable.) Even if an expense is ordinary and necessary, it may not be deductible if the IRS considers it lavish or extravagant.

OBBBA and TCJA changes

Here are some types of business expenses whose deductibility is affected by OBBBA or TCJA provisions:

Entertainment. The TCJA eliminated most deductions for entertainment expenses beginning in 2018. However, entertainment expenses […]

By Linkenheimer LLP|2025-10-27T19:31:54+00:00October 27th, 2025|business, expensing, New Tax Laws, tax planning, year-end|0 Comments

End-of-Year Tax Strategies: Gifting and Charitable Giving

As the year draws to a close, it’s the perfect time to review your financial and tax strategies. Whether you’re looking to benefit loved ones or support charitable causes, there are several ways to make tax-efficient financial decisions before December 31. This guide highlights two key strategies: annual exclusion gifts to reduce your taxable estate and qualified charitable distributions (QCDs) to maximize the tax benefits of your charitable contributions.

Annual Exclusion Gifts

As the end of the year approaches, many people start to think about their finances and tax strategies. One effective way to reduce potential estate taxes and show generosity to loved ones is by giving cash gifts before December 31. Under tax law, you can gift a certain amount each year without incurring gift taxes or requiring a gift tax return. Taking advantage of this rule can help you reduce the size of your taxable estate while benefiting your family and friends.

Taxpayers can transfer substantial amounts, free of gift taxes, to their children or other recipients each year through the proper use of the annual exclusion. The exclusion amount is adjusted for inflation annually, and in 2024 is $18,000. It covers […]

By Linkenheimer LLP|2024-11-18T19:24:34+00:00November 18th, 2024|charity, contributions, gift tax, year-end|0 Comments