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Why a Year-End Tax Projection Can Be One of Your Most Useful Planning Tools

By |2026-10-08T15:25:14-07:00October 1, 2026|Categories: Tax Planning|Tags: |0 Comments

In the final months of the year, you probably know much more about your financial picture than you did back in January. Your income is taking shape, business results are clearer, investment gains and losses have accumulated. Maybe a property has been bought or sold, or you have retired, changed jobs, relocated, welcomed a new family member, or experienced another financial change.

Bottom line: Your tax picture has likely been changing, and that’s what makes the dozen or so weeks leading up to Dec. 31 particularly useful for tax planning. Instead of waiting until your tax return is prepared to find out where you stand, a year-end tax projection provides an earlier look at your expected tax liability and helps identify issues or planning opportunities while the tax year is still open.

Tax Preparation Looks Back, A Tax Projection Looks Ahead

Tax return preparation and tax projections serve different purposes. When your tax return is prepared, the year has already ended. Most of the income has been earned, transactions have occurred, and end-of-year deadlines have passed. The job at that point is largely to determine how the tax rules apply to what happened during the previous year.

A year-end tax projection happens earlier. It uses information available now, together with reasonable estimates for the remainder of the year, to develop a working picture of your expected tax position. That distinction helps because knowing about a potential issue before year-end may give us time to help you evaluate your options. Discovering the same issue during tax season may simply tell you what already happened.

A Lot About Your Finances Can Change in a Year

Your prior-year tax return provides useful information, but it does not necessarily predict what will happen this year. Consider what may have changed since your last return.

Perhaps you started a new job, received a raise, accepted a bonus, or benefited from another form of compensation. You might have started or sold a business, experienced a substantial change in business income, sold real estate, or received income from a new source. Your investment portfolio, including any cryptocurrency you possess, may have generated significant gains or losses. Retirement even could have changed the Continue reading… Continue reading… Continue reading…

The Tax Implications of Transferring Property to a Business Entity

By |2026-08-04T13:36:54-07:00August 4, 2026|Categories: Real Estate, Tax Planning|Tags: , , , |0 Comments

When forming a new business or funding an existing business, you may think it’s a good idea to transfer assets to the business entity in exchange for ownership interest (i.e., transferring property to a business entity for shares in the company).

You may also be thinking about transferring certain liabilities (debt) to the entity. Transactions such as these are common, but the way you structure them can have serious tax implications. Sometimes, they trigger immediate taxation. Sometimes, they don’t.

The rules vary dramatically depending on whether you’re dealing with a C corporation, S corporation, partnership, or limited liability company (LLC) taxed as a partnership. The wrong choice, or simply structuring the transaction incorrectly, could leave you with an unexpected tax bill.

In this post, we explain what you need to know before you transfer assets or liabilities to a business entity.

Transferring Property Tax-Free: Tax Rules for Transferring Property to a Business Entity

If you’re wondering whether you can transfer property into a business without immediately recognizing taxable gain, the short answer is yes. But whether a given transaction qualifies for favorable tax treatment depends largely on the type of entity with which you are dealing:

  • Corporation (that can be either a C corp. or S corp.)
  • Partnership (GP, LP, LLP),
  • Limited Liability Company (LLC) taxed as a partnership

Regardless of the type of business entity, the objective is to complete the transfer without triggering immediate taxation.

Transferring Property to a Corporation

If you’re transferring property to a C corp. or S corp., you generally qualify for tax-free treatment only if the people contributing the property collectively own at least 80 percent of the corporation immediately after the transfer. Specifically, the individual or the group contributing the property must collectively own: Continue reading… Continue reading… Continue reading…

Summer 2026 Tax Updates Business Owners, Investors & California Taxpayers Should Know

By |2026-06-24T14:26:07-07:00June 24, 2026|Categories: Tax Planning|Tags: , , , , |0 Comments

Summer may feel like a quiet time for tax planning, especially after the spring filing rush. In reality, some of the most important tax planning windows open midyear, when business owners, real estate investors, individuals, and families still have time to make informed decisions before the end of the year.

This summer, several federal tax updates deserve attention. Some involve deadlines. Others are focused on Internal Revenue Service (IRS) account access, digital assets, qualified small business stock (QSBS), Health Savings Accounts (HSAs), disaster relief, and Employee Retention Credit claims (refundable tax credits for businesses and non-profits that kept employees on their payroll during pandemic-related government shutdowns or significant revenue declines). And for California taxpayers, the state’s Franchise Tax Board (FTB) identity verification notices deserve a closer look.

In this post, we explain what has changed, who may be affected, and what steps you may need to take before the next tax season catches you by surprise. First up, summer deadlines.

Summer 2026 Tax Deadlines for Individuals and Business Owners

Two July deadlines stand out for taxpayers and business owners.

First, July 6, 2026, marks the deadline for certain Section 174 elections tied to research and experimental expenditures. These rules may matter for businesses with software development, product development, engineering, scientific research, or other innovation-related costs.

Second, July 10, 2026, marks an extended deadline tied to possible COVID-era refund claims for penalties and interest. This deadline stems from litigation involving whether certain filing and payment deadlines received automatic disaster-related postponement during the COVID-19 disaster period (Jan. 20, 2021 – July 10, 2023).

Here’s what that means in plain English: Some taxpayers who paid penalties or interest connected to COVID-era filing or payment timing may have a potential refund claim. The rules remain technical, and the IRS may challenge claims depending on the facts, so it’s best to ask about this during your Summer 2026 Mid-Year Tax Appointment with us here at SWC.

IRS Business Tax Account Access: What Business Owners Should Review in Summer 2026

The IRS has continued to expand online access for business taxpayers. For S corporations and C corporations, certain individuals, known as Designated Officials, can use the IRS Business Tax Account to view information such as Continue reading… Continue reading… Continue reading…

Get a Jump on Your 2026 Taxes with Mid-Year Tax Planning

By |2026-06-03T11:56:05-07:00June 3, 2026|Categories: Tax Planning|Tags: , , , , , |0 Comments

With your April 15 tax filing still visible in your rearview mirror, the last thing you probably want to think about is next year’s tax return. After weeks of gathering documents and tracking down deductions, it’s understandable if your thinking has shifted from tax planning to planning your summer vacation.

But summer is one of the best times to take a fresh look at your tax situation. The pressure of filing season is behind you, and you still have plenty of time before year-end deadlines start looming. Small adjustments made now can add up to considerable savings on next year’s tax bill.

A little planning during the summer months can pay dividends leading up to April 15, 2027. Whether you’re hoping to reduce your tax bill or avoid unpleasant surprises next year, we are here to help with your mid-year tax planning. That way, you can fully enjoy your summer, confident that your tax situation is well in hand.

In this post, we share several tax-planning strategies to consider as we head into summer 2026.

Graphic for a blog post about planning ahead for a 2026 tax filing.

Review Your Tax Withholdings or Estimated Tax Payments

Taxes have a way of sneaking up on people. A raise, a side gig, a new deduction, or even a change in family circumstances can throw you off course. The result? An unwelcome surprise come spring. The first order of business is to make sure you’re sending the right amount of money to the taxing authorities throughout the year in the form of tax withholdings and/or estimated tax payments:

  • Tax withholdings: Use the IRS Tax Withholding Estimator at to figure out the right amounts to have your employer(s) withhold (and remit) to taxing authorities on your behalf. You’ll need recent pay stubs (for you and your spouse, if you’re married), details of other income, and your most recent tax return (which can be very helpful in helping you gauge whether you’re underpaying or overpaying).
  • Estimated tax payments: If you’re self-employed or have additional income from a side job or another source, you should be making quarterly estimated tax payments to both federal and state tax agencies. Start with your expected total annual income, subtract any deductions (or the standard deduction), and estimate your tax based on applicable tax brackets. Then, subtract any withholdings from your day job income. Don’t overlook Social Security income and income from other sources.

Reconsider Standard Versus Itemized Deductions

If you normally claim the standard deduction, consider itemizing. If you normally itemize, consider claiming the standard deduction. For 2026: Continue reading… Continue reading… Continue reading…

Early 2025 Tax Planning: Important Deadlines for Individuals & Business Owners

By |2025-02-13T16:46:40-08:00February 13, 2025|Categories: Tax Planning|Tags: |0 Comments

At SWC — Southern California’s independently owned tax planning and financial strategies advisory firm for entrepreneurs and small business owners, real estate investors, and high-net-worth individuals — we know tax deadlines can be overwhelming. And if you’ve been with us awhile, you know that staying ahead of the game can help you avoid unnecessary penalties and stress.

Early 2025 Tax Filing Deadlines Graphic

Below, we’ve outlined the most important tax dates for business owners, entrepreneurs, and individual taxpayers for February through April. Here’s what you need to know:

Important Tax Dates for Business Owners & Entrepreneurs

FEBRUARY 2025

Feb. 10 (note: if you missed this deadline and would like assistance, please contact our office for help):

  • Employers must file Form 940 (Employer’s Annual Federal Unemployment (FUTA) Tax Return form), Form 941 (Employer’s Quarterly Federal Tax Return form), Form 943 (Employer’s Annual Federal Tax Return for Agricultural Employees form), Form 944 (Employer’s Annual Federal Tax Return form), and Form 945 (Annual Return of Withheld Federal Income Tax form) — but only if taxes were deposited on time and in full.
  • Employees who earn tips must report January tips to their employer via Form 4070 (Employee’s Report of Tips to Employer form).

Feb. 18:

  • If an employee claimed an exemption from income tax withholding on their 2024 Form W-4, they must file a new Form W-4 to continue that exemption for 2025.

Feb. 28: Continue reading… Continue reading… Continue reading…

Breaking: New Deadlines for Beneficial Ownership Reporting Announced

By |2026-08-12T11:04:29-07:00December 24, 2024|Categories: Tax Planning|Tags: , , |0 Comments

Editor’s Note (August 2026): Since this post was originally published, the federal government has changed the beneficial ownership information (BOI) reporting requirements under the Corporate Transparency Act. U.S.-formed companies are now exempt from BOI reporting requirements. The reporting rules generally apply only to certain entities formed under foreign law that are registered to do business in the United States. As a result, the BOI filing requirements described below no longer apply to U.S.-formed businesses. For additional details on the ruling, read the U.S. Department of Treasury’s Beneficial Ownership Information Reporting Requirement Revision (PDF file).

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The world of compliance and financial reporting is complex, and staying informed of recent changes in rules and regulations is essential to protecting your business and avoiding costly fines.

Recent court decisions surrounding the Corporate Transparency Act (CTA) and its beneficial ownership information (BOI) reporting rule have reshaped the reporting landscape yet again. Yesterday, another court weighed in on the BOI. Here’s what you need to know to stay ahead.

What Happened with the BOI and How Does It Affect Your Business?

On December 23, 2024, a panel of Fifth Circuit judges granted the government’s motion to stay a December 3, 2024, nationwide preliminary injunction ordered in the Texas Top Cop Shop, Inc., v. Garland case. What that means is the court reinstated the reporting requirements for beneficial ownership information (BOI) with the Financial Crimes Enforcement Network (FinCEN).

Going back a bit further, the CTA, which was established by Congress as part of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021, seeks to combat financial crimes by increasing transparency surrounding corporate ownership. When the legislation was sent to the President to sign into law in December of 2020, he vetoed it, after which the U.S. House of Representatives and the United States Senate both voted to override the veto, making the Act’s beneficial ownership information requirement effective as of Jan. 1, 2021.

For now, as a result of yesterday’s ruling, most businesses are required to comply with the CTA’s reporting requirements, with extended deadlines to account for the injunction’s temporary impact.

Updated Deadlines You Need to Know About

To give businesses time to adjust to the reinstated reporting requirements, the U.S. Department of the Treasury has extended several deadlines:

  1. For Companies Created or Registered Before January 1, 2024:
    • New Deadline: January 13, 2025
      (Previously, these companies would have had to report by January 1, 2025.)
  2. For Companies Created or Registered Between September 4, 2024, and December 23, 2024:
    • New Deadline: January 13, 2025
  3. For Companies Created or Registered Between December 3, 2024, and December 23, 2024:
    • New Deadline: 21 days after their original filing deadline.
  4. For Disaster Relief-Eligible Companies:
    • Deadline: The later of January 13, 2025, or the extended deadline specified for disaster relief.
  5. For Companies Created or Registered After January 1, 2025:
    • Deadline: 30 days after receiving notice that their registration or creation is effective.

Why These Deadlines Matter Continue reading… Continue reading… Continue reading…

Using an S Corporation to Reduce Your Income Tax

By |2024-11-20T12:30:02-08:00November 20, 2024|Categories: Tax Planning|Tags: , , |0 Comments

If you’re an entrepreneur or small-business owner, you may be aware of a common tactic for reducing your income tax: You form an S corporation and then use it to pay yourself a combination of wages and distributions. Put simply, an S corporation is a corporation that chooses to be taxed as a pass-through entity (a business structure where the profits and losses “pass through” directly to the owners, who report them on their personal tax returns, instead of the business paying corporate taxes).

Photo for Using an S Corporation to Reduce Your Income Tax

Under this plan, you pay income tax on both wages and distributions, but you pay self-employment tax — Social Security and Medicare — only on wages. Income from distributions is not subject to Social Security and Medicare withholding.

On its surface, this tactic saves you about 15.3 percent in taxes on the amount you pay yourself in distributions, because as an employer/employee, you’re responsible for paying both halves of Social Security and Medicare. As an employer, you pay 6.2 percent Social Security and 1.45 percent Medicare, and an amount equivalent to that as employee. If you crunch the numbers, that’s 6.2 percent + 1.45 percent = 7.65 percent x 2 = 15.3 percent.

However, you need to be aware of three important considerations: Continue reading… Continue reading… Continue reading…

Tax Planning for a Second Trump Presidency

By |2025-07-10T10:34:21-07:00November 13, 2024|Categories: Tax Credits, Tax Planning|Tags: , , , , |0 Comments

The votes are in, the winner has been declared. Now’s the time to start planning your taxes around the second Trump presidency (2025-2028). Of course, taxes aren’t entirely within the purview of the President of the United States — only Congress has the power to change the tax code. However, the president has tremendous influence over it.

For his part, the president proposes tax policies that can influence public opinion, rallies Congress to pass tax legislation, and has the power to veto any tax legislation proposed by Congress. And while the president can’t change the tax code through executive orders, he can direct agencies to implement certain tax policies or interpretations and pay less attention to others.

Graphic for Tax planning in the 2nd Trump presidency

So, what changes to the tax code can we expect from a second Trump presidency? In many ways, we can expect to see more of the same — an extension of many of the provisions in the Tax Cut and Jobs Act (TCJA) that Congress approved in late 2017 near the middle of the first Trump presidency. In addition, we can likely count on additional tax relief to promote growth and increase take-home pay for workers.

In this post, we review key provisions of the TCJA, which will expire at the end of 2025 unless Congress acts to extend them, and we highlight changes to the tax code that Trump proposed during his campaign.

Tax Cut and Jobs Act Provisions That Are Set to Expire in 2025

Many of the TCJA provisions were intended to be temporary. Unless Congress acts to extend them, the following provisions are set to expire at the end of 2025: Continue reading… Continue reading… Continue reading…

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