Centennial CPA

02/07/2026

Tax News Update: IRS Intensifies Audits and Enforcement on ERC Claims - February 2026.

The IRS has significantly increased audits, denials, and enforcement actions related to Employee Retention Credit (ERC) claims, with a particular focus on claims filed through aggressive third-party promoters and so-called “ERC mills.”

After reviewing over one million ERC claims totaling more than $86 billion, the IRS reported that the vast majority of claims showed some level of risk and required additional scrutiny.

Full article here: https://www.centennialhillscpa.com/tax_news.php

09/04/2025

⏳ How Long Do I Have to Claim a Tax Refund?

Did you know the IRS gives you a limited window to claim your refund?

✅ You have 3 years from the original filing deadline of your tax return to claim a refund.
✅ After that, the money goes back to the U.S. Treasury — and you lose it for good.
✅ Example: 2021 tax returns were due April 18, 2022. If you haven’t filed yet, you must file by April 15, 2025, to get your refund.

👉 Don’t leave your hard-earned money on the table!

📞 Need help filing past-due returns or checking if you’re owed a refund? Centennial CPA can help you claim what’s yours before the deadline.

Take a look at our Schedule A Consultation page. Centennial CPA is a full service tax, accounting and business consulting firm located in Las Vegas , NV.

09/04/2025

💡 If I owe taxes and file a tax extension, do I have to pay any penalties?

Filing a tax extension only gives you more time to file your return, not more time to pay what you owe.

✅ If you owe taxes, the IRS expects payment by the original April deadline.
✅ If you don’t pay by then, you may face:

Failure-to-Pay Penalty (0.5% of the unpaid taxes per month)

Interest Charges (accrues daily on the unpaid balance)

The good news? Filing an extension avoids the Failure-to-File Penalty, which is much steeper (5% per month).

👉 Bottom line: If you can’t file on time, get that extension in. But if you owe taxes, try to pay as much as possible by the deadline to minimize penalties and interest.

📞 Need help estimating what you owe before filing an extension? Our team at Centennial CPA can guide you through the process and help you avoid unnecessary penalties.

Take a look at our Schedule A Consultation page. Centennial CPA is a full service tax, accounting and business consulting firm located in Las Vegas , NV.

08/28/2025

☀️ Don’t Miss the 30% Solar Tax Credit — It Ends December 31, 2025!

Good news—but time’s running out! The 30% federal solar tax credit (Residential Clean Energy Credit, Section 25D) is now scheduled to expire on December 31, 2025—so this year is your last chance to lock in the full benefit.

** Here’s what you need to know and do now:**

1. Installation Must Be Completed by December 31, 2025

The system (including panels and possibly batteries) must be installed and commissioned before the end of 2025 to qualify. Solar batteries often qualify too—just make sure they’re installed in time.

2. Who Can Claim the Credit?

Homeowners across the U.S. can claim up to 30% of the cost of their new, first‑use solar panel systems, including installation. The system must be at a primary or secondary residence you own.

3. No Income Caps—But There Are Limits

No income limits—you just need tax liability to apply the credit. If the credit exceeds what you owe, you can carry the remainder forward to future years—but you won’t get extra refund money.

4. How to Claim It

File IRS Form 5695 when you do your taxes for the year the system was installed.

5. Why the Rush?

The tax credit was originally set to continue through 2032 (per the Inflation Reduction Act), but the new One Big Beautiful Bill (OBBBA) truncated it to the end of 2025.

For leased or PPA (Power Purchase Agreement) systems, the tax credit (Section 48E) will still apply—only through 2027—and has loftier documentation requirements.

Take a look at our Home page. Centennial CPA is a full service tax, accounting and business consulting firm located in Las Vegas , NV.

08/28/2025

🚗💨 Last Chance to Get Up to $7,500 on Your EV! Don’t Miss the Federal Tax Credit Before It’s Gone!

If you’ve been thinking about switching to an electric vehicle, now is the moment to act. The federal EV tax credit (up to $7,500 on new EVs and $4,000 on used EVs) is officially ending on September 30, 2025

But there’s a helpful loophole: as long as you have a binding purchase agreement and make a payment (even a small one) by that deadline, you can still claim the credit when the vehicle is delivered later

Take a look at our Home page. Centennial CPA is a full service tax, accounting and business consulting firm located in Las Vegas , NV.

08/22/2025

Attention Valued Clients & Friends — Key Tax Changes from the “One Big Beautiful Bill Act”

As your trusted CPA firm, we’re committed to keeping you informed about the major tax law changes introduced by the recently passed One Big Beautiful Bill Act (signed July 4, 2025). Here’s what you need to know:

Permanent Extensions of 2017 Tax Cuts

The individual tax rates, lower brackets, and increased standard deduction from the 2017 Tax Cuts and Jobs Act are now permanent, removing the sunset scheduled at the end of 2025.

New Temporary Deductions (2025–2028)

Overtime Pay: Deduct up to $12,500 ($25,000 if married filing jointly) of qualified overtime pay—phasing out for higher incomes.

Tip Income: Deduct tips up to $25,000 each (phase-out applies).

Auto Loan Interest: Up to $10,000 in interest on qualifying car loans (U.S.-assembled, personal-use vehicles).

Senior Deduction: Seniors (65+) may deduct an extra $6,000 ($12,000 for couples), subject to income phase-outs.

Enhanced Child Tax Credit

The per-child credit increases from $2,000 to $2,200 and is now indexed to inflation.

Expanded SALT Deduction Cap

The state and local tax deduction cap rises from $10,000 to $40,000, though the higher cap will revert after five years.

Business & International Tax Highlights

The 20% Qualified Business Income (QBI) deduction is now permanent, with higher income thresholds.

Research & Development expensing, equipment cost recovery, and R&D credits are now permanent.

International tax changes include a fixed BEAT rate at 10.5% and permanent favorable treatment of certain credits.

Estate & Gift Tax Adjustments

The estate, gift, and generation-skipping tax exemption is permanently increased to $15 million (inflation-adjusted), effective December 31, 2025.

Take a look at our Home page. Centennial CPA is a full service tax, accounting and business consulting firm located in Las Vegas , NV.

08/22/2025

🚗💼 What Red Flags Does the IRS Look for When Reviewing Business Mileage Expenses?

Business mileage can be a valuable deduction—but it’s also one of the most scrutinized by the IRS. Here are the top red flags that can trigger questions:

1️⃣ Claiming 100% Business Use – It’s rare that a vehicle has zero personal miles. Unless it’s a dedicated company car, this raises eyebrows.
2️⃣ No Mileage Log – The IRS requires a contemporaneous log with dates, destinations, and purpose. Estimates don’t cut it.
3️⃣ Round Numbers – Reporting “perfect” figures like 10,000 or 20,000 miles looks suspicious. Accurate records rarely end in zeros.
4️⃣ Unusually High Mileage – If your mileage deduction seems excessive compared to your business type or income, expect scrutiny.
5️⃣ Mixing Commuting Miles – Driving from home to your regular office is not deductible. Mixing these miles in can trigger an audit.

✅ Pro Tip: Keep a detailed mileage log (apps or spreadsheets work great). Documentation is your strongest defense.

Take a look at our Home page. Centennial CPA is a full service tax, accounting and business consulting firm located in Las Vegas , NV.

08/22/2025

🚨 5 Business Deductions That Commonly Trigger an IRS Audit 🚨

While deductions are a smart way to reduce taxable income, some business write-offs tend to catch the IRS’s attention more than others. Here are the top ones to be cautious with:

1️⃣ Home Office Deduction – Allowed if you use a dedicated space exclusively for business. Too many inflated claims get flagged.
2️⃣ Travel & Meals – Legitimate business expenses are fine, but personal trips disguised as business are a red flag.
3️⃣ Vehicle Expenses – Claiming 100% business use of a car often raises questions unless you have detailed mileage logs.
4️⃣ Large Charitable Contributions – Generous giving is good, but deductions that don’t match your business’s income level draw scrutiny.
5️⃣ High Entertainment or “Miscellaneous” Expenses – Vague or poorly documented write-offs are more likely to be audited.

👉 The key isn’t to avoid these deductions—it’s to document them properly. Accurate records are your best defense.

Take a look at our Home page. Centennial CPA is a full service tax, accounting and business consulting firm located in Las Vegas , NV.

07/28/2025

💼 Tax Tip for Real Estate Agents in Nevada

As a self-employed real estate agent or broker in Nevada, you're considered an independent contractor by the IRS — and that means you’re running a small business. Nevada has no state income tax, but the IRS still expects you to file and pay federal taxes — and you have opportunities to reduce your tax bill if you play it smart.

✅ Track Every Business Expense
As a real estate agent, many of your everyday business costs are deductible:

Vehicle mileage (log all client visits, open houses, and showings)

Advertising & marketing (including social media ads, signage, websites)

Professional dues & licensing fees (MLS fees, NAR dues, state license renewal)

Office supplies, software, CRM tools, business cards, etc.

Cell phone and internet (pro-rated for business use)

✅ Home Office Deduction
If you use a portion of your home regularly and exclusively for your real estate work, you may qualify for a home office deduction — including part of your rent/mortgage, utilities, and more.

✅ Self-Employment Tax & Retirement
You’re responsible for both the employer and employee side of Social Security and Medicare taxes (15.3%). Offset this with tax-deductible contributions to a SEP IRA, Solo 401(k), or Traditional IRA — reducing your taxable income while saving for the future.

📆 Tip: Pay quarterly estimated taxes to avoid penalties and keep organized digital records of income and expenses year-round.

Being self-employed gives you flexibility — but also responsibility. Treat your real estate business like a business, and you’ll pay less to Uncle Sam and keep more of your hard-earned commission!

Take a look at our Home page. Centennial CPA is a full service tax, accounting and business consulting firm located in Las Vegas , NV.

07/28/2025

🏡 Tax Tip for Small Landlords in Nevada

If you own rental property in Nevada, you’re not just a property owner — you’re a business owner in the eyes of the IRS. That means you have powerful tax tools at your disposal to reduce your taxable rental income and keep more of your earnings.

✅ Depreciation is your friend: Even though your property may be increasing in market value, the IRS lets you depreciate the structure over 27.5 years. This non-cash expense can significantly lower your taxable income each year. Just remember — land is not depreciable, only the building.

✅ Deduct every legitimate expense:

Mortgage interest

Property taxes (yes, Nevada has them!)

Insurance premiums

HOA dues

Repairs and maintenance

Professional services (legal, accounting, property management)

Utilities (if you pay them)

✅ Home office deduction: Manage your rental from home? You might be able to deduct a portion of your home expenses if used exclusively and regularly for managing your rentals — even if it’s just one unit.

✅ Travel and mileage: Driving to and from your property for repairs, inspections, or meetings? That mileage is deductible. Track it using a log or mileage app.

✅ Avoid passive activity losses: If your income is under $150,000 and you actively manage your rental, you may be able to deduct up to $25,000 in rental losses annually — even if your property shows a paper loss from depreciation.

📁 Tip: Keep detailed records and receipts. Create a digital folder per property for easy tracking and audit protection.

Nevada may not have a state income tax, but the IRS rules still apply. Treat your rental like a business — and save like one.

Take a look at our Home page. Centennial CPA is a full service tax, accounting and business consulting firm located in Las Vegas , NV.

07/28/2025

Tax Tip for Contractors & Tradesmen in Nevada

If you're a self-employed contractor or tradesman in Nevada — plumber, electrician, landscaper, roofer, or handyman — you may be missing out on major tax deductions that could lower your taxable income and save you thousands.

✅ Vehicle expenses: Use your truck or van for work? You can deduct mileage or actual vehicle expenses (gas, insurance, maintenance, lease, or depreciation). For 2025, the IRS standard mileage rate is TBD cents/mile — track every work-related trip.

✅ Tools & equipment: Tools under $2,500 can often be deducted in full the year purchased under the de minimis safe harbor rule. Larger equipment may qualify for Section 179 depreciation.

✅ Home office: If you run your business from home, even part-time, you may qualify for a home office deduction — including a portion of rent, utilities, and internet. Must be used regularly and exclusively for business.

✅ Work clothing & safety gear: Hard hats, steel-toed boots, and specialized uniforms may be deductible if not suitable for everyday use.

✅ Subcontractors & labor: Paid anyone more than $600? You may need to issue a 1099-NEC and can likely deduct the expense.

📦 Keep detailed records and receipts — and consider using bookkeeping software or a spreadsheet to categorize expenses monthly.

Nevada may not have state income tax, but the IRS is still watching. Stay organized, deduct smart, and talk to a qualified tax pro to maximize your write-offs!

Take a look at our Home page. Centennial CPA is a full service tax, accounting and business consulting firm located in Las Vegas , NV.

06/25/2025

What is a "Reverse Section 1031 Exchange"?

A reverse section 1031 exchange is a type of property exchange that allows an investor to acquire a replacement property before selling the relinquished property. This is different from a standard section 1031 exchange, where the relinquished property is sold first, and then the replacement property is acquired.

Process

In a reverse section 1031 exchange, the investor typically uses an Exchange Accommodation Titleholder (EAT) to hold the replacement property temporarily. The EAT holds the property until the investor sells the relinquished property. Once the relinquished property is sold, the investor can transfer the replacement property from the EAT to themselves, completing the exchange.

Benefits

The primary benefit of a reverse section 1031 exchange is that it allows investors to secure a desirable replacement property without the pressure of selling the relinquished property first. This can be particularly advantageous in competitive real estate markets where desirable properties may not be available for long.

Considerations

There are several important considerations to keep in mind with reverse section 1031 exchanges:

Complexity: Reverse exchanges are more complex and require careful planning and coordination.

Costs: They can be more expensive due to the involvement of an EAT and additional legal and administrative fees.

Timing: The IRS imposes strict timelines for completing the exchange, which must be adhered to.

Take a look at our Home page. Centennial CPA is a full service tax, accounting and business consulting firm located in Las Vegas , NV.