Libra Accounting Services, Inc.

05/11/2026

Key aspects of Public Law 63-43 include:

Creation of the Fed: Established Federal Reserve Banks to serve as the central bank.Elastic

Currency: Authorized the creation of Federal Reserve notes to provide an elastic currency that could expand or contract with the economy's needs.

Banking Supervision: Set up a system to regulate and supervise banking in the U.S. to ensure stability.Structure:
Divided the nation into districts with regional Federal Reserve Banks.

Historical Significance: Passed in response to financial panics (specifically 1907) to prevent future crises.

As of early 2026, some analysts highlight that this long-standing legislation continues to grant the President authority regarding economic coordination

05/01/2026

2026 Income Tax Brackets

Tax brackets show you the tax rate that will be applied to each dollar of your taxable income.

There are currently seven federal income tax rates: 10%, 12%, 22%, 24%, 32%, 35%, and 37%.

As your federal taxable income increases, the percentage of tax you pay on some of your income will increase if you move into a higher tax bracket.

Your marginal tax rate is the tax rate that’s applied to the last dollar of your taxable income, while your effective tax rate is the percentage of your taxable income that you owe in taxes.

Plan now to reduce your taxable income.

01/19/2026

Business tax returns are due 3.15.26. Are your books in order?
If you need help and are located in eastern Suffolk County, I would come to you.
Call or text (631) 334-0691.

12/30/2025

Get Ready for filing season 2026

The One, Big, Beautiful Bill has changed many tax rules. Some changes may affect credits, deductions, and how taxes are calculated. Planning/getting organized now so that I can help you understand these new rules and get you all the benefits/deductions you are eligible for.

Free Consultation!

Libra Accounting Services, Inc.
email me: [email protected]

11/30/2025

OBBB Act and the introduction of a new car interest tax break. Here is what you need to know.

Details of what qualifies

New not used vehicles
Personal use; not business use
Final vehicle assembly in the United States
Purchases after 2024 and before 2029
Vehicles under 14,000 pounds qualify, including cars, mini-vans, SUVs, trucks, and motorcycles
Maximum interest deduction: $10,000.
Income phaseout: Single $100,000 -150,000; MFJ $200,000 - $250,000
Deduction is ABOVE the line. You do not need to itemize your deductions to receive this benefit.
Observations and tips

All your interest is probably deductible. $10,000 interest results in a vehicle purchase over $100,000 per many economists, but the average loan on a vehicle is in the $40,000s. So if you qualify, ALL the interest you pay is covered within the benefit.
Make the loan 5 years or less. The deduction is current scheduled to be in place for 4 years, so interest after this is probably not covered.
What qualifies is tricky. Some U.S. brands are assembled abroad, while some foreign vehicles are assembled here. So get confirmation BEFORE you buy.
Reporting is key. In 2025 the IRS recently gave reporting relief to lenders, so you will not receive a year end tax report. You should, however, receive a recap of interest paid to the lender in the form of a recap or monthly statements.
Deduction is not elimination. Your interest expense still exists! It is just reduced by 20 to 25%. So do not overspend your income with a large car loan because of this tax law change. In fact, buying a used car may still be financially better for you.

11/23/2025

If your an individual or small business, now is the time to get your finances in order for the upcoming tax season.

11/20/2025

I made it!

11/15/2025

Do you know what one of your biggest business expense is?
TAXES! And if you’re like many business owners, your hard-earned dollars are dying ... never to create any kind of return for you.

KEEP ALL THE MONEY YOU CAN IN YOUR BUSINESS.
As business owners, we work hard to build our business, to create cash-flow and have success.
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I believe small business owners like you should have the same tax advantages that big businesses have but at an affordable price.

Call Libra Accounting Services, Inc. at (631) 334-0691 to set up a review of your last years small business tax return and show you where you possibly could have saved money.

11/15/2025

For years, the tax code trend was to reduce the amount of interest that may be deducted on your tax return. Until recently, it really only allowed interest deductions as an itemized deduction on qualified residences and vacation property. That is changing now with the passage of the OBBB Act and the introduction of a new car interest tax break. Here is what you need to know.

Background

Congress and the Executive office traditionally use tax breaks on interest to drive consumer behavior. The government historically likes us to own homes and now the government is encouraging us to buy new vehicles with final assembly in the United States. It is an attempt to encourage manufacturers to migrate assembly back to the U.S.

Details of what qualifies

New not used vehicles
Personal use; not business use
Final vehicle assembly in the United States
Purchases after 2024 and before 2029
Vehicles under 14,000 pounds qualify, including cars, mini-vans, SUVs, trucks, and motorcycles
Maximum interest deduction: $10,000.
Income phaseout: Single $100,000 -150,000; MFJ $200,000 - $250,000
Deduction is ABOVE the line. You do not need to itemize your deductions to receive this benefit.
Observations and tips

All your interest is probably deductible. $10,000 interest results in a vehicle purchase over $100,000 per many economists, but the average loan on a vehicle is in the $40,000s. So if you qualify, ALL the interest you pay is covered within the benefit.
Make the loan 5 years or less. The deduction is current scheduled to be in place for 4 years, so interest after this is probably not covered.
What qualifies is tricky. Some U.S. brands are assembled abroad, while some foreign vehicles are assembled here. So get confirmation BEFORE you buy.
Reporting is key. In 2025 the IRS recently gave reporting relief to lenders, so you will not receive a year end tax report. You should, however, receive a recap of interest paid to the lender in the form of a recap or monthly statements.
Deduction is not elimination. Your interest expense still exists! It is just reduced by 20 to 25%. So do not overspend your income with a large car loan because of this tax law change. In fact, buying a used car may still be financially better for you.
It is easy to get carried away with new tax law changes like this one. The best tip? If you were planning on buying a new car anyway, ask the dealer if it qualifies for this program. But for most taxpayers, it is probably not worth having this being the only thing steering your purchase decision.

11/09/2025

Year-End Tax Planning Tips: 2025 EDITION by John W. Halloran, CPA PC

There's still time to act

Tip Image
Tip Category: Planning

At the end of each year there are a number of things to consider that may have a positive impact on your tax obligation. Here is a list of ideas that may be worth a quick review while there is still time. And especially this year with recent tax law changes.

1. Maximize your retirement savings while reducing your taxable income. There is still time to make contributions to employer retirement plans like a 401(k). Remember each year has a contribution limit and if you don't take advantage of it, it is lost. And with law changes it is important to note:

Special bonus catch up contributions for those age 60 to 63 is $11,250 (up from $7,500) so leverage this rule if it applies to you.
Beginning in 2026 those with incomes above $125,000 can ONLY put catch up contributions in Roth employer retirement accounts. So plan accordingly this year AND next.
2. Leverage the new $40,000 tax limit for itemized deductions. This is up from $10,000. It may impact how you treat itemizing your tax return this year. (see our prior tips on this subject!)

3. Fund your final charitable donations. Remember, your strategy here may change with new law changes, including the ability to deduct more of your taxes this year. Include in this review:

Donating appreciated stock owned one year or longer, either directly to a qualified charity or through a donor advised charitable trust.
If 70 1/2 or older consider making a qualified charitable donation (QCD) from a qualified retirement account. The limit in 2025 is $108,000 ($216,000 for married couples) and can serve as your required minimum distribution as well as being a tax saving tool. But ask for help here, as you need to do this correctly.
4. Review your investment portfolio for capital gain and loss planning. In addition to the ideas already mentioned, remember you can net gains against losses AND you can use up to $3,000 in net capital losses to offset ordinary income.

5. Maximize the kiddie tax threshold and gift rules. $2,700 of unearned income can be taxed at your child’s lower tax rate and you can gift up to $19,000 per tax payer this year.

6. Review medical funding accounts. Remember contributions to an Health Saving Account (HSAs), if you have this plan available to you, effectively saves money on all your qualified medical, dental and vision spending. Plus unused balances carry over from year to year. So maximize the annual contribution while there is still time. While Medical Savings Accounts (MSAs) do not have the same flexibility, it is good to review the rules now and take advantage of any plan available to you to ensure you do not lose this tax-free funding opportunity.

7. Prepare now for tax-free tips and overtime pay. If you have not already done so, review the approved occupations for qualified tips and confirm the amount of this benefit long before you receive documentation from your employer. The same holds true for overtime pay. Employers are not required to issue W-2s or 1099s with this breakout in 2025, so you will need to ensure the reporting you do receive is accurate.

8. Estimate your tax liability and make any final estimated tax payments. Please note the impact of:

Tax-free tips and overtime pay
The new $6,000 senior deduction ($12,000 if you and your spouse qualify)
Your current tax withholdings and make any adjustments
Any other impacts from the new tax laws (like interest paid on new car loans) and how it changes your situation
9. Consider any rollover of tax-deferred retirement accounts into Roth accounts.

10. Get prepared for tax filing. This includes:

Creating a list of expected W-2s and 1099s
Review of your tax withholdings
Issuing any required tax forms (especially if you have household employees)
Organization of your tax records
Should you have any questions on these ideas, ask for help. In many cases, the requirements and documentation needed are important to ensure you receive the full tax savings benefit.

11/03/2025

As you or your family members approach retirement years, it's important to have a basic understanding of the IRS gift giving rules. With this understanding, there are opportunities to leverage this tax law without creating a tax problem.

The rules

You may give up to $19,000 to any individual (donee) in 2025 and avoid any gift tax filing requirements.
If married, you and your spouse may transfer up to $38,000 per donee.
If you provide a gift to your spouse who is not a U.S. citizen, the annual exclusion amount is $190,000.
Gifts in excess of this annual amount trigger the need to file a gift tax form with your individual tax return. The excess gift amounts are then added to your estate for potential estate taxation.
The estate tax currently has a maximum rate of 40% and the donor of the gift (or their estate) is responsible for paying the tax.

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