Affinity Tax Service

02/05/2026

Important Tax News for Car Buyers! Auto Loan Interest

Starting in 2025, auto loan interest may become tax deductible under the new One Big Beautiful Bill (OBBB) — and the best part? You can claim it on top of your standard deduction (no need to itemize).

Key points:
▪️Applies to NEW vehicles only
▪️Loan must originate in 2025 or later
▪️Deduction currently available for tax years 2025–2028
▪️Vehicle must be finally assembled in the U.S. (check VIN/window sticker)
▪️For personal use vehicles
▪️Up to $10,000 per year in interest may be deductible

Income limits:
▪️ Single: starts phasing out around $100,000 MAGI
▪️ Married filing jointly: starts around $200,000 MAGI
▪️ Fully phased out around $150k single / $250k joint

If you’re planning to buy a new car between 2025 and 2028, this could mean real tax savings. Talk with your tax professional to see how this may benefit you!

Send a message to learn more

01/30/2026

Heads up, parents filing 2025 tax returns!

There’s a brand-new option called a “Trump Account” for kids, elected on IRS Form 4547.

Available for children under age 18
Kids born 2025–2028 may qualify for a one-time $1,000 government seed deposit when the account is opened
Growth is tax-deferred
Works similarly to a traditional IRA for your child’s future

The election does NOT have to be made on your tax return — it can also be completed separately, but timing and proper setup still matter.

As of now, it’s unclear whether many tax software providers will have Form 4547 fully integrated for filing season, since this is a brand-new form.

If you have young children, make sure to talk with your tax professional before filing so you don’t miss the opportunity to take advantage of this.

Send a message to learn more

01/27/2026

Tax Law Update: What the “OBBB” Means for the Upcoming Tax Season

Big tax legislation was recently passed in 2025 under what’s being called the One Big Beautiful Bill (OBBB), and it brings several important changes that will impact many taxpayers this coming tax season.

Many provisions from the 2017 Tax Cuts and Jobs Act (TCJA) were extended or made permanent, providing more certainty going forward.

Make sure your tax professional is up to date on the ever changing tax law.

Here are some of the bigger highlights:

Standard Deduction Increased
Most taxpayers will see a higher standard deduction, which can reduce taxable income without itemizing.
• $31,500 (Married Filing Joint)
• $15,750 (Single)

Child Tax Credit (CTC)
The CTC remains enhanced and more stable under the extensions, continuing valuable relief for families.
• $2,200 per child

SALT Deduction Cap (Itemized Deduction)
The cap on state and local tax deductions was adjusted, which may benefit homeowners and higher-income filers.
• Raised from $10,000 to $40,000
• Phases out with income over $500,000

Charitable Contributions
Some charitable deductions allowed even if you take the standard deduction.
• Up to $2,000 for MFJ starting in 2026

Auto Loan Interest Deduction
Interest on certain auto loans may be deductible for qualifying taxpayers.
• Up to $10,000 for U.S.-made vehicles
• Phases out over $100k Single / $200k MFJ

Senior Deduction
Additional deduction to help offset rising costs.
• $6,000 for age 65+ (per individual)
• Phases out over $75k Single / $150k MFJ

Tips & Overtime Income
Certain tip income and overtime pay may receive favorable treatment.
• Tips up to $25,000
• Overtime up to $12,500
• Phaseouts begin at $150k Single / $300k MFJ

Bonus Depreciation
Big win for business owners and real estate investors.
• 100% bonus depreciation is now permanent

Send a message to learn more

01/25/2026

🥶 It might be negative 20 outside…
🔥 But tax season is heating up!

Now is the perfect time to start gathering your 2025 tax information so you’re ready when filing season arrives.

W-2s, 1099s, mortgage interest, student loan interest, business expenses, charitable donations, getting organized early makes tax time smoother and less stressful.

Send a message to learn more

11/18/2025

Tax planning season is heating up as the temperature is cooling down!

Now’s the time to take advantage of year-end opportunities:

Thinking about a capital purchase for your business?

In real estate, planning to buy a rental for extra depreciation?

Considering an S-corp election for 2026?

Does a Roth conversion make sense based on where you sit in your tax bracket?

Small moves now can lead to big savings later. A lot can be looked at now to avoid surprises in March and April!

06/03/2025

📣 Reminder: Q2 Estimated Tax Payments Are Due June 16, 2025! 💰

Avoid that 7% IRS underpayment penalty by making your payment on time!

💡 Did you know? If your income is seasonal or varies throughout the year, you might benefit from using the annualized method. Instead of paying the same amount each quarter, this method allows you to base your payments on actual quarterly profit — which can:

✅ Improve cash flow
✅ Better align tax payments with income
✅ Reduce the risk of overpaying (or underpaying)

Not sure if you qualify or how to calculate it? That’s what we’re here for.

📞 Contact Affinity Tax Service today — let’s make your tax strategy work for you, not against you.

05/28/2025

🚨 Frustrated with Unnecessary Tax Return Extensions? 🚨

Do you feel like your tax return keeps getting extended for no reason?
Are you submitting your documents on time, only to get another email saying your return will be delayed again?

It might be time to find a tax accountant who values your time.

At Affinity Tax Service, we believe in:

✅ Realistic turnaround times
✅ Clear communication
✅ Respecting your deadlines — especially when your documents are submitted on time

📅 Don’t settle for delays. Let us show you how professional, timely tax service should be done.

📞 Call us today or message us to schedule your appointment — tax season doesn’t have to be stressful.

04/07/2025

💰 Got a Bonus? Here’s How It’s Taxed! 💰

If you recently received a bonus, congratulations! 🎉 But before you celebrate too much, keep in mind that bonuses are taxed differently than regular wages. Here’s what you need to know:

📌 Two Ways Your Bonus Can Be Taxed:

1️⃣ Percentage Method:
🔹 Your employer withholds a flat 22% federal tax on your bonus (for bonuses under $1M).
🔹 If your bonus is over $1M, the first $1M is taxed at 22%, and anything beyond that is taxed at 37%.

2️⃣ Aggregate Method:
🔹 Your bonus is added to your regular paycheck and taxed based on your total earnings.
🔹 This method can sometimes result in higher withholding, but you may get some of it back at tax time.

💡 Key Takeaway: Regardless of how it’s taxed upfront, your final tax bill depends on your total income and deductions for the year. You could end up owing more or getting a refund when you file your return!

💼 Not sure how your bonus will impact your taxes? Affinity Tax Service can help you plan ahead and avoid surprises.

04/03/2025

🚨 Attention Cryptocurrency Holders! 🚨

Did you know that your crypto transactions could be taxable? Whether you're buying, selling, or trading digital assets, it's crucial to properly report your crypto dealings to stay compliant with the IRS.

📌 Key Points to Remember:
✅ If you buy crypto and later sell it for USD, it’s a capital gain—
🔹 Long-term gain (if held for over a year)
🔹 Short-term gain (if held for less than a year, taxed at ordinary income tax rates)

✅ Trading one cryptocurrency for another? That’s also a taxable event!

✅ The IRS now requires you to check "Yes" or "No" on your 1040 if you received, sold, exchanged, or disposed of any digital assets like:
🔹 Cryptocurrency & Stablecoins
🔹 NFTs & other digital assets

The good news? Many crypto platforms provide transaction statements to make reporting easier! 📊💰

Need help navigating your crypto taxes? Affinity Tax Service is here to help! Contact us today to ensure you're filing correctly and avoiding unnecessary penalties. 📞📩

04/01/2025

With today being April fools day, people are going to be trying to play jokes on you all day. Here are 5 things that will help you spot April fools jokes … see more

03/27/2025

🚗💼 Thinking About Purchasing a Vehicle for Your Business? Let’s Talk Depreciation! 💰📉

Buying a vehicle for business use can offer significant tax benefits, but there are important IRS guidelines to keep in mind. Here’s what you need to know:

✅ Depreciation Basics: Most vehicles are depreciated over 5 years, allowing you to recover part of the cost annually.

✅ Accelerated Depreciation Options: Maximize your first-year deduction with tools like:

Bonus Depreciation
Section 179 Deduction (requires more than 50% business use).

✅ Key Rules for Maximizing Your Deduction:

Over 6,000 lbs GVW: For the largest first-year deduction, choose vehicles with a Gross Vehicle Weight (GVW) over 6,000 lbs.
Trucks: Ensure the truck’s bed length exceeds 6 feet for additional benefits.
SUVs: Stick with SUVs over 6,000 lbs GVW for greater depreciation options.
Under 6,000 lbs GVW: Vehicles below this weight have year 1 depreciation limits.

💡 Don’t Forget the Trade-In!
Something that doesn’t get talked about enough is what happens when you trade in a business vehicle. Here’s the deal:

The trade-in is treated as a sale, and you’ll likely pick up ordinary income tax on the depreciation recapture of the vehicle being traded in.
If you’ve claimed significant depreciation on the old vehicle, this can result in a reduction of the accelerated depreciation benefit when purchasing the new one.

🚨 Depreciation and trade-ins are complex—but Affinity Tax Service can guide you through it all, ensuring you make the best decisions while staying IRS-compliant.

03/25/2025

📢 Attention Business Owners: Let’s Talk Accelerated Depreciation! 📢

Maximizing tax deductions is key to keeping more money in your business. When it comes to accelerated depreciation, there are two primary options: Bonus Depreciation (Section 168(k)) and Section 179. Here’s what you need to know:

✅ Bonus Depreciation (168(k))
Allows you to deduct a percentage of an asset's cost in year one, with the remainder depreciated over its tax life.

The deduction percentage is phasing out:
2024: 60%
2025: 40%
2026: 20%
2027: 0% (unless new tax laws change this).

Can create a taxable loss (i.e., take your income below $0).
Election is all or none for each asset class life (5, 7, 10, 15, 20 years).

✅ Section 179 Expensing
Allows for a 100% deduction of an asset’s cost in year one (subject to limits).
2024 maximum deduction: $1,220,000
Phase-out begins when total purchases exceed $3,050,000.
Business use must be greater than 50%.
You can pick and choose which eligible assets to expense.
Cannot create a taxable loss—Section 179 is limited to taxable income plus owner’s compensation (if you are a passthrough entity). Any excess deduction carries forward to future years.
Not available for rental properties.

Even if you don’t take Bonus or Section 179, most short-lived assets use MACRS depreciation (a front-loaded method), which is typically faster than straight-line depreciation.

🚀 Need help maximizing your deductions? Contact Affinity Tax Service today! Let’s ensure you’re making the most of your depreciation strategy.