Aspen Tax & Accounting

03/08/2026

The “Augusta Rule” – A Little-Known Tax Strategy for Business Owners

Did you know the IRS allows business owners to legally earn tax-free income by renting their own home to their business?

It’s called the Augusta Rule (IRC Section 280A), and it can create $14,000+ in tax-free income when used correctly.

How it works:

Rent Your Home to Your Business
Your business (LLC or corporation) can rent your personal residence for meetings, board meetings, planning sessions, or events.

Tax Advantage
• Your business deducts the rent as a legitimate business expense
• You do not have to report the rental income on your personal tax return if the home is rented for 14 days or less per year

Example
If your business rents your home for 14 days at $1,000 per day:
• Your business receives a $14,000 deduction
• You receive $14,000 in tax-free income

Important Requirements
• The meetings must be legitimate business meetings
• The rental rate must be reasonable and based on market value
• Meetings should be documented (agenda, attendees, notes)
• The rental cannot exceed 14 days per year

Important note: This is not an inherent LLC tax benefit. It is an IRS rule that can apply when businesses hold meetings at a personal residence.

When structured properly, it can be a simple strategy to reduce business taxes while creating tax-free income personally.

Always consult with your tax professional to ensure it is implemented correctly.

02/03/2026

Following are some tips for some of our more seasoned Taxpayers:

At age 73, your taxes are primarily affected by mandatory withdrawals from retirement accounts, potential "bonus" deductions, and the taxation of Social Security benefits. As of 2025, new legislation (the "One Big Beautiful Bill Act") and the SECURE Act 2.0 have introduced significant changes to tax planning for seniors.

Here are the key factors affecting your taxes at 73:
1. Required Minimum Distributions (RMDs)
The Rule: You are generally required to take annual RMDs from traditional IRAs, 401(k)s, and 403(b) plans starting the year you turn 73.
Tax Impact: RMDs are taxed as ordinary income.
Deadline: Your first RMD must be taken by April 1 of the year after you turn 73. Subsequent RMDs must be taken by December 31 each year.
Penalty: Failing to take an RMD can result in a 25% penalty on the amount not withdrawn (reduced to 10% if corrected promptly).
Exception: If you are still working, you may be able to delay RMDs from your current employer’s 401(k) until you retire, but this does not apply to traditional IRAs.
2. New 2025-2028 "Senior Deduction"
Enhanced Deduction: Beginning in 2025, you may be eligible for an additional "bonus" deduction of up to $6,000 per person ($12,000 for married couples filing jointly) if you are 65 or older.
How it Works: This is in addition to the standard deduction and the existing extra standard deduction for seniors.
Income Limits: The deduction begins to phase out if your modified adjusted gross income (MAGI) exceeds $75,000 for single filers or $150,000 for joint filers.
3. Increased Standard Deduction
Higher Deduction: Because you are over 65, you qualify for a higher standard deduction, reducing your taxable income.
2025 Amounts: In 2025, a single filer over 65 gets a $17,750 standard deduction ($15,750 base + $2,000 addition).
Married Couples: If both spouses are over 65, the 2025 standard deduction is $34,700.
4. Taxation of Social Security Benefits
Income Thresholds: Social Security can be taxed at any age if your total income (including 50% of your benefits) exceeds $25,000 (single) or $32,000 (married filing jointly).
RMD Impact: Because RMDs increase your total income, they can cause a higher portion of your Social Security benefits to become taxable.
5. Qualified Charitable Distributions (QCDs)
Tax-Free Donation: If you are 70½ or older, you can transfer up to $108,000 (in 2025) directly from your IRA to a qualified charity.
Benefit: This transfer is not included in your taxable income and can satisfy your RMD requirement.
6. IRMAA (Medicare Premiums)
Premium Surcharges: Your Income-Related Monthly Adjustment Amount (IRMAA) is based on your tax return from two years prior. High RMDs can increase your income, leading to higher Medicare Part B and Part D premiums.
7. Roth Conversions
Strategy: If you have a large traditional IRA, you might consider converting part of it to a Roth IRA. You pay taxes on the conversion upfront but eliminate future RMDs and taxes on that money.

01/11/2026

12/31/2025

Just a little accounting humor to end 2025!

12/28/2025

TAX RELIEF FOR SENIORS: What’s New?
While Social Security benefits were not made completely tax-free, there is good news for seniors under the One Big Beautiful Bill.
Temporary tax relief for taxpayers age 65 and older
For tax years 2025 through 2028, seniors can claim an additional deduction of:
• $6,000 per person, or
• $12,000 for married couples filing jointly
Why this matters:
Even though Social Security benefits are still technically taxable, the Social Security Administration estimates that this added deduction will prevent 9 out of 10 recipients from paying federal income tax on their benefits — because it directly lowers taxable income.
Income limits apply:
• $75,000 for Single filers
• $150,000 for Married Filing Jointly
If you or a loved one receives Social Security, this change could significantly reduce — or eliminate — the tax impact on those benefits over the next few years.
Have questions about how this applies to your situation? As always, I’m happy to help you plan ahead and make the most of the tax laws.

12/13/2025

Retirement Planning - Are you self employed and not sure how to plan for your retirement? In the corporate world, many employers offer 401k plans or other pension options. Historically, it's always harder for those of us who are self employed. Have you ever heard of a Solo 401k? Take a look.....

A Solo 401(k) (or Individual/One-Participant 401(k)) is a powerful retirement plan for self-employed individuals or small business owners with no employees (except a spouse), allowing them to save significantly for retirement with high contribution limits and both pre-tax (traditional) and after-tax (Roth) options, essentially acting as both employer and employee, offering tax-deferred growth, and even permitting plan loans and alternative investments like real estate.

Key Features & Benefits

Eligibility: You must be self-employed (sole proprietor, partner, LLC, S-Corp, C-Corp) with no full-time employees other than your spouse.

Dual Contributions: You contribute as both the employee (up to 100% of salary, max $23,000 in 2024, plus catch-up if 50+) and the employer (up to 25% of compensation), significantly boosting savings.

High Limits: Total contributions can reach up to $69,000 (or $76,500 with catch-up for 50+) in 2024, making it ideal for high earners.

Tax Advantages: Contributions reduce taxable income (traditional), while Roth options allow tax-free withdrawals in retirement.

Investment Flexibility: Offers traditional stocks/bonds/funds, plus self-directed options for real estate, private equity, or crypto.

Spousal Participation: Your spouse can also participate if they earn income from the business, doubling your savings potential.

Loans & Asset Protection: Some plans allow loans, and funds generally have strong creditor protection.

How it Works (Contribution Example for 2024)
Employee Contribution: You contribute up to $23,000 from your earnings (or $30,500 if 50+).
Employer Contribution: Your business contributes up to 25% of your net income (or 20% for sole props/partnerships).
Total: These combine for a large, tax-advantaged deposit into your retirement fund.

Types of Plans
Brokerage-Based: Simpler, with standard investments like mutual funds.
Self-Directed: Allows for alternative investments but requires more active management

12/09/2025

New Tax Law Update: Some Earnings Are Now Tax-Free!

Big news for employees in tipped and hourly industries! Recent tax law changes now allow certain types of income to be excluded from federal taxable wages — meaning more take-home pay for many workers.

Here’s what’s newly tax-free under the updated rules:
✔️ Tips (up to the new annual limit)
✔️ A portion of overtime wage premiums
✔️ Select employer incentive or shift-premium programs

These changes aim to boost take-home pay without increasing employer payroll costs — but not everyone will qualify, and the limits vary based on income and job type.

If you are someone that earns tips or overtime, this could make a noticeable difference on your tax return this coming tax season!

Have questions about how this applies to you or your business?
I’m here to help you understand the rules and make sure you’re claiming every benefit available.

Send me a message anytime!

11/24/2025

New Car Loan Interest Deduction Alert!

The new One Big Beautiful Bill Act introduced a unique tax break:
You may now deduct up to $10,000 per year in interest on new car loans (2025–2028) — even if you don’t itemize.

A few quick rules:
✔️ Vehicle must be new and assembled in the U.S.
✔️ Applies to cars, SUVs, trucks, vans & motorcycles under 14,000 lbs
✔️ Personal-use vehicles only
✔️ Income limits apply

If you’re planning to buy a new car soon, this deduction could make a real difference.

11/07/2023

04/21/2023

Our passes not only come with unlimited access to these views but also free bonus lift tickets at partner resorts. We team up with other small but awesome resorts around the nation to add value to our passes and hope you take advantage of this perk.

Last season we had 19 resorts and we’ve already received signed agreements from three resorts for next season. Thank Bogus Basin Mountain Recreation Area, Red River Ski & Summer Area and Snow King Resort for partnering with us and be sure to check the website throughout the summer for the growing list! https://www.diamondpeak.com/tickets-passes-rentals/season-passes/reciprocal-partners/

Drop a comment to let us know if you used any of your bonus days this season.

04/21/2023

Welcome to Midtown Market!
When sisters work opposite shifts and they think alike!

680 NM State Hwy 522
Arroyo Hondo, NM
Open:
Monday thru Saturday 7am-9pm
Sundays 8am-9pm

04/21/2023

Come see us soon!