Taylor, Miles & Associates, P.A.

08/27/2026

The home-office deduction can produce substantial tax savings, especially when it converts what would otherwise be commuting miles into deductible business mileage. But many business owners accidentally put this valuable deduction at risk.

If you use your home office for more than one purpose, each use must qualify under the tax rules. A single non-qualifying use can jeopardize the deduction.

One of the biggest traps involves W-2 employment. Federal law now permanently denies employees a home-office deduction on their personal tax returns. That means if you use the same office for both your self-employed business and your W-2 job, your employee use can threaten the deduction for your business.

The same caution applies if you operate multiple businesses from the same office. Each business must independently qualify for the home-office deduction. Likewise, if you share the office with your spouse, your spouse’s use must also qualify—unless you split the room so each spouse uses a separate portion exclusively.

If your business operates as either an S or a C corporation, there is still a way to benefit from a home office. Rather than claiming the deduction personally, the corporation can reimburse your home-office expenses through an accountable plan.

The consequences of losing the home-office deduction can extend beyond the office itself. You may also lose valuable business mileage deductions if the IRS reclassifies your trips as non-deductible commuting.

08/20/2026

The IRS has made some enhancements to the paid family and medical leave tax credit. Click the link below for more information.

Tax Tip 2026-64, Aug. 20, 2026 — Employers, including small businesses, that provide paid family and medical leave to their employees may be eligible for an employer tax credit.

08/11/2026

If you’re planning to sell highly appreciated real estate, a closely held business, or private company stock, don’t let the tax consequences become an afterthought. There may be a way to defer the capital gains tax for years—even decades—but only if you plan before the sale.

One strategy worth considering is a deferred sales trust. Instead of selling your asset directly to the buyer, you first sell it to an independent trust in exchange for an installment note. The trust then completes the sale to the buyer. Because you receive payments over time rather than all at once, you generally pay the capital gains tax as those payments are received.

The biggest advantage is that the full pre-tax sale proceeds can remain invested instead of immediately being reduced by taxes. That allows more money to compound over time and may provide a steady stream of retirement income.

Unlike a Section 1031 exchange, a deferred sales trust does not require you to purchase replacement real estate within strict deadlines. It can also provide greater investment flexibility if you’re ready to move beyond real estate.

This strategy, however, is not for everyone. Because the IRS scrutinizes these transactions, they require careful planning before you sign a binding sales agreement, and the trust must be genuinely independent. In addition, unlike a 1031 exchange, a deferred sales trust generally does not preserve the step-up in basis that heirs may receive when appreciated real estate is held until death.

08/04/2026

If you own more than one business, you may be missing out on a larger Section 199A deduction without even realizing it.

The Section 199A deduction allows many owners of sole proprietorships, partnerships, and S corporations to deduct up to 20 percent of their qualified business income. Even better, Congress has now made this deduction permanent, which means proper planning is more valuable than ever.

When you own multiple businesses, the calculation becomes much more complicated. Depending on your taxable income, you may have the opportunity to combine, or “aggregate,” certain businesses for purposes of computing the deduction. In the right circumstances, aggregation can substantially increase your tax savings.

Taxpayers with higher incomes can enhance the deduction by the amount of W-2 wages paid or business property owned. One business may have plenty of wages but little income, while another has strong profits but few wages. If the businesses qualify for aggregation, combining them can produce a significantly larger deduction than what results from calculating each business separately.

Businesses that generate losses require special attention as well. A loss from one business can reduce the deduction available from your profitable businesses, making accurate calculations especially important.

The rules governing aggregation are highly technical, and not every business qualifies. In addition, if you elect to aggregate, you generally must continue using that approach in future years unless the facts change.

***Always consult with your CPA.

07/27/2026

If your business receives an Employee Retention Credit (ERC) refund in 2026 for wages paid in 2020 or 2021, you may have an important tax planning opportunity.

Many businesses filed ERC claims years after they filed their original income tax returns. Because the IRS took so long to process many claims, some refunds are only now being paid, even though the related tax years are closed.

To address this situation, the IRS currently allows taxpayers to report the ERC refund as taxable income in the year they receive it. Following this guidance can help you avoid unnecessary disputes with the IRS.

At the same time, you may want to protect your rights. Some tax professionals believe the IRS’s position could ultimately be rejected by the courts. If that happens, taxpayers who paid tax on their ERC refunds may be entitled to a refund.

One way to preserve that opportunity is to file a protective refund claim after reporting the income on your 2026 return. This approach complies with current IRS guidance while keeping the door open to recover the tax if the law changes in your favor.

07/22/2026

If you own a traditional IRA, failing to take your required minimum distribution (RMD) can cost you far more than taking it and paying the associated income tax.

Owners of traditional IRAs, SEP IRAs, and SIMPLE IRAs generally must begin taking RMDs the year they reach age 73. (Roth IRA owners are not subject to lifetime RMDs.) You may delay your first RMD until April 1 of the following year, but all subsequent RMDs must be taken by December 31 each year.

Missing an RMD—or withdrawing less than the required amount—can trigger one of the steepest penalties in the tax code. The IRS may assess an excess accumulation penalty equal to 25 percent of the amount not withdrawn. For example, if your RMD is $50,000 and you withdraw only $30,000, you could owe a $5,000 penalty on the $20,000 shortfall.

Fortunately, you can reduce the penalty to 10 percent by correcting the shortfall within the IRS correction window. In most cases, you must withdraw the missed amount by the end of the second calendar year following the year in which you missed the RMD.

You may even qualify for a complete penalty waiver. The IRS often waives the penalty if you can show that the shortfall resulted from a reasonable error and that you have taken steps to correct the problem and prevent it from happening again.

To request a waiver, withdraw the missed RMD and file IRS Form 5329, Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts. Attach a signed statement explaining why you missed the distribution and describing the steps you have taken to avoid future errors.

Acceptable explanations may include a serious illness, a family emergency, a custodial error, or a misunderstanding of the first-year RMD rules. Preventive measures might include establishing automatic RMD withdrawals or reviewing your annual RMD calculation with your IRA custodian.

The IRS frequently grants a waiver when a taxpayer misses an RMD for the first time and promptly corrects the mistake.

07/07/2026

Back-to-School season is almost here!
One of the best parts is South Carolina’s Tax-Free Weekend, making it a great time to save on eligible back-to-school purchases.
The South Carolina Department of Revenue (SCDOR) has announced that the 2026 Tax Free Weekend will take place August 7-9, 2026.
For a complete list of eligible items and additional details, visit the SCDOR website or click the link below:
https://dor.sc.gov/news/south-carolinas-2026-tax-free-weekend-starts-friday-august-7

07/04/2026

Happy Independence Day from the Taylor, Miles and Associates family. 🇺🇸

07/02/2026

This Fourth of July, we celebrate the freedoms we enjoy and honor those who have served and continue to serve our country. We are grateful for the opportunity to serve our wonderful community and appreciate each and every one of our clients.
Wishing you and your family a safe, fun, and memorable Independence Day filled with laughter, good food, and great company. Happy 4th of July from all of us!

06/25/2026

The so-called Augusta Rule can create a valuable tax-saving opportunity for business owners who operate through an S corporation, a C corporation, or a partnership.

Under this rule, you may rent your personal residence to your business for up to 14 days per year and receive the rental income completely tax-free. At the same time, your business may deduct the rental expense as a legitimate business deduction.

So, if your corporation rents your home to hold business-related events, the corporation may deduct the fair market rental amount paid to you. At the same time, you exclude the rental income from your personal taxable income.

To use this strategy properly, documentation is critical.

If your business pays you $2,000 or more in rent during the year, the corporation generally must issue you IRS Form 1099-MISC. Even though the rental income is tax-free under the Augusta Rule, you should still report the income on your personal tax return and then offset it with a Section 280A(g) exclusion to avoid IRS matching notices.

The 14-day limit applies per residence—not per corporation. If you own multiple residences, each residence may qualify separately for up to 14 tax-free rental days annually.

You should also maintain records supporting the business purpose of each event and proof that the rent paid reflects fair market value. Comparable pricing from hotels, meeting spaces, event venues, or similar rental properties can help support the deduction.

Qualifying business uses may include board meetings, employee training sessions, strategic planning retreats, and employee appreciation events. However, entertainment-focused events or excessive personal use can jeopardize the deduction.