Brian Newman CPA, PLLC

04/15/2026

Tax Season number 22 in the books!

While my Mother wouldn't approve of this, there were choice words said often during this tax season. This was one of the more difficult tax seasons of record where everyone believes that they're a 'Tax Expert'. Some common issues faced:

1) Yes, you must have a profit motive for your business. Losing $65,000 doesn't demonstrate a profit motive to me no matter what you think.

2) AI says alot of things which doesn't necessarily mean it is accurate. Look if you want to believe AI over a CPA, that's on you. Have AI prepare your tax return and leave me alone.

3) Publicly Traded Partnerships (PTPs) will issue K1s after your taxes are filed and yes, there will be a fee tacked on to correct the originally filed return.

4) Nothing screams "Come and audit me" more than telling me that you have $20,000 in expenses and 10,000 miles driven.

5) You get what you pay for when it comes to tax preparation and financial advice. Your "tax guy" and financial adviser told you that you were a "qualifying surviving spouse" and the IRS disagrees. The IRS is accurate and you owe $15,000 in tax + penalties/ interest. What more can I say that your "tax guy" and financial adviser are both morons.

6) Folks dispensing tax advice that have no business doing so: 1) Financial advisers, 2) your hair dresser (my hair dressers are lovely and they don't dispense tax advice), 3) the guy charging $200 to do taxes (seriously...these folks aren't qualified and have no business doing taxes), and 4) TikTok. If you take tax advice from any of the above...🤣🤣🤣.

7) Despite what you've read on the internet, Social Security is still taxable. I don't really care what you 'think' or 'believe'...it is still taxable. Go ahead and get your second opinion. Better yet, just have them prepare your taxes. 🤣.

Lots of pent up sarcasm this time of year and if you were offended along the way, I apologize...maybe. I'm overdue for breakfast/coffee/lunch/beers with many. Let's be sure to get that scheduled!

On a more positive note, it was another growth year and I've met some great folks along the way. Lots of positive impact in helping folks overcome the fear of being self employed and being afraid of tax time. By the time we've gone through one year together, taxation should be a lot simpler than the prior year. There are many positive stories this year, none better than reviewing a couple's tax return to find out they were taxed on the sale of their primary residence. A few questions later and this ended up being a nice little refund.

Most important of all! I must acknowledge my family for putting up with me during tax season. Sarah takes on the stress of managing the household as a single parent and rightfully refers to herself as a 'tax season widow'. Then poor Seb has no idea what I do all day in the office, but there sure are alot of papers for him to shred. Little does he know...he's a tax deduction 😉.

03/20/2026

Seb says that he wants to be a CPA just like his Dad. Clearly, he's already making questionable life choices...

I'll explain "busy season" to him later so that he doesn't quickly change his mind!

12/20/2025

It has been a fruitful few weeks as I've been meeting with new tax clients where the following scenarios played out:

1) Mitigated underpayment penalties/interest on $200k of self employment income and no taxes paid. Saved $5,000.

2) Assisted a taxpayer in fixed the mistakes of another "tax professional" which provided annual tax savings of $15,000. Best part of this one is that the "tax professional" simply had no idea what they were doing. May have earned myself a steak dinner from this client 😉.

3) Assisted a taxpayer in simplifying their overly complex tax structure which saved $5k annually, then implemented a one time tax savings strategy to instantly save $10k in taxes. Another win for the taxpayer!

4) Chatted with a local business owner about tax strategy and devised ways to lower their overall tax burden from 33% to a much better looking tax rate!

One of the reasons that I love what I do is that I'm able to help hard working taxpayers save more money with simple tweaks to their tax situation.

I'll be signing off for some well deserved R&R before the tax storm begins next month. Therefore, I'll be out of the office from 12/24 - 1/5. If you've made it this far, Merry Christmas and Happy Holidays!

11/23/2025

I work with small business owners + real estate investors to help them navigate the perils of IRS rules to ensure that we're maximizing tax deductions and available tax credits. With 20+ years of experience working with small business owners, I strive to ensure that clients are educated about the tax return they're going to sign. Over 70+ 5⭐️reviews from satisfied tax clients!

Unfortunately, there are no barriers to entry when it comes to tax preparation and "just about anyone" can claim to be able to prepare taxes. Do you know what happens when you hire an unlicensed contractor? Same concept applies in the tax industry...it's always more expensive to "fix" the other person's mistakes. Now is the time of year that you begin to wonder, "Am I working with the right tax preparer?" If you believe your situation has elevated to hiring a CPA, let's chat.

On a recent FB group request for CPA recommendation, I received the attached testimonial from a local business owner. It can literally "pay to switch" tax preparers if it's uncovered that you have missed deductions.

Over the course of the next couple weeks, I'll be seeking to add a few small business owners to my practice and even a couple 1040s. If you or someone you know may be looking for a new CPA, please feel free to reach out to me. Also, please give this post a "like" and "share" with your network.

Thank you 😊
www.bnewmancpa.com

11/08/2025

As a follow-up to the email that I sent on Monday, there is no bigger tax pitfall than this over the next coming months. If you or someone you know has obtained insurance from the Health Insurance Marketplace...it's extremely important to be as accurate as possible when estimating your income from 2026.

I have seen scenarios where as much as 100% of the credit received had to be repaid at year-end. No matter what our friends in DC decide to do with this, it's important to understand how this will impact you, otherwise, you could face an unpleasant tax surprise in April 2027.

Households are bracing for a sharp increase in their health insurance premiums if Congress doesn't extend enhanced subsidies for ACA marketplace plans.

11/03/2025

The time of the year has come where it’s important to review the past 10 months to see if there have been any changes to your personal situation or whether or not we can tax advantage of some new tax provisions. Some examples of planning opportunities:

1. Are you making substantially more (or less) income compared to last year?,

2. Is there something form the new tax bill that pertains to you?, or

3. Simply ensure that you’re on track so that you can avoid paying any underpayment interest and/or penalties.

As I’m sure you’re aware, the “One Big, Beautiful, Bill Acct (OBBBA)”, was signed into law in 2025. This legislation makes many of the 2017 tax changes permanent and introduces new deductions that could offer substantial tax-saving opportunities for you and your family in the 2025 tax year.

Some of the key provisions that we saw in the headlines:
1. No tax on Tips,
2. No tax on Overtime,
3. Deduct car loan interest on new cars,
4. Increased SALT cap to $40,000, and
5. Deduction for those over the age of 65.

Many of those will phase out based on your modified adjusted gross income (MAGI), so some element of year-end tax planning will be beneficial to ensure that you’re able to take advantage of those provisions. One thing to keep in mind for the upcoming tax year is that many of those new tax provisions are nullified if your filing status is Married Filing Separate.

If you’re interested in tax planning for the upcoming tax year, please feel free to reach out. If you or someone you would benefit from tax planning or working with a CPA, please refer them (individual as well as business clients) my information.

11/01/2025

The One Big Beautiful Bill Act (OBBBA) created a new bonus tax deduction—available for seniors beginning this year (2025). You can claim this deduction whether or not you itemize.

𝐇𝐨𝐰 𝐌𝐮𝐜𝐡 𝐂𝐚𝐧 𝐘𝐨𝐮 𝐃𝐞𝐝𝐮𝐜𝐭?

If you qualify, you may be eligible for a bonus deduction of up to $6,000 per person. For married couples filing jointly—where both spouses are age 65 or older—the total potential deduction is $12,000.

𝐈𝐦𝐩𝐨𝐫𝐭𝐚𝐧𝐭. If married, you must file a joint return to benefit even when only one spouse qualifies; filing separately disqualifies you.

This bonus deduction is in addition to

• the regular standard deduction, and
• the existing age-based additional deduction.

𝐈𝐧𝐜𝐨𝐦𝐞 𝐋𝐢𝐦𝐢𝐭𝐬 𝐀𝐩𝐩𝐥𝐲

The OBBBA begins to phase out the 2025 senior bonus deduction when your modified adjusted gross income exceeds $75,000 as a single filer or $150,000 joint.

A married couple where both taxpayers are above the age of 65 will qualify for an additional $12,000 deduction and assuming you're in the 22% tax bracket...you'll save $2,640 in taxes.

𝐓𝐚𝐤𝐞𝐚𝐰𝐚𝐲𝐬

Managing your AGI will be important if you plan to take advantage of this new deduction. Consider spreading out your capital gains or retirement conversions over several years. If you're over the age of 70.5, consider a qualified charitable distribution (QCD) to help manage your AGI.

If you or someone you know is looking to work with a CPA this upcoming tax season, please feel free to reach out.

www.bnewmancpa.com

10/22/2025

One of the provisions of the One Big Beautiful Bill Act, or OBBBA, was the ability to deduct the interest on certain new car purchases. While interest deductions aren’t new to the tax code as mortgage interest incurred has always been deductible, the ability to deduct interest on automobile purchases is new. The temporary deduction introduced has some rules that we should be aware of:

𝟏) Vehicle must have been purchased after December 31, 2024, and before January 1, 2029 (as the deduction expires after tax year 2028),

𝟐) Vehicle must be new (not used), for personal use, and weigh less than 14,000 pounds,

𝟑) Leases don’t qualify,

𝟒) Final assembly of the vehicle must be in the United States, and

𝟓) Taxpayer doesn’t need to itemize in order to claim maximum of $10,000 in interest paid, however, the deduction begins to phase out for single filers earning more than $100,000 (married filers earning more than $200,000).

𝐓𝐡𝐞 𝐁𝐨𝐭𝐭𝐨𝐦 𝐋𝐢𝐧𝐞: A saying in the world of tax that I love to reference is, “Don’t let the tax tail wag the dog”. If you’ve already purchased a new vehicle, this may be a welcome bonus. However, I’m not sure that I’d recommend utilizing this as an excuse to run out and purchase a new vehicle. There is no better car payment than none at all…

If you or someone you know may be looking to work with a CPA this upcoming tax season, please feel free to reach out!

www.bnewmancpa.com

10/12/2025

Congress recently passed the One Big Beautiful Bill Act, or OBBBA, which introduces a new tax deduction for tips beginning in 2025. This provision, called “No Tax on Tips,” sounds broader than it really is. The deduction is both temporary and limited in scope, and many tips will still be subject to taxation.

𝐇𝐨𝐰 𝐌𝐮𝐜𝐡 𝐈𝐬 𝐭𝐡𝐞 𝐃𝐞𝐝𝐮𝐜𝐭𝐢𝐨𝐧?

1) The deduction applies from 2025 through 2028.
2) Workers can deduct up to $25,000 per year in tips.
3) Self-employed workers cannot deduct more than their net business income.
4) The deduction phases out for taxpayers with modified adjusted gross income above $150,000 (or $300,000 for joint filers).

𝐖𝐡𝐚𝐭 𝐂𝐨𝐮𝐧𝐭𝐬 𝐚𝐬 𝐚 𝐓𝐢𝐩?

The IRS defines tips as voluntary cash payments or those made by charging a credit card. The tipper—not the worker—must determine the amount. Negotiated payments and service charges do not qualify as tips.

𝐖𝐡𝐨 𝐐𝐮𝐚𝐥𝐢𝐟𝐢𝐞𝐬 𝐟𝐨𝐫 𝐭𝐡𝐞 𝐃𝐞𝐝𝐮𝐜𝐭𝐢𝐨𝐧?

Only workers in occupations where tips are customarily received can claim this deduction. Examples include waitstaff, bartenders, hotel staff, hairstylists, barbers, taxi and rideshare drivers, baristas, and casino dealers.

The IRS has published a comprehensive list of qualifying occupations. Workers in fields such as healthcare, law, accounting, consulting, financial services, the performing arts, and athletics are not eligible to claim the deduction. So the bright idea of getting folks to pay me via 'tip' isn't going to work!

𝐁𝐨𝐭𝐭𝐨𝐦 𝐋𝐢𝐧𝐞 𝐟𝐨𝐫 𝐓𝐚𝐱𝐩𝐚𝐲𝐞𝐫𝐬!

If tips are voluntary + included in your income, you're probably eligible for a deduction. Note that if you've received cash tips that never made it into your income (because they weren't claimed), well, you aren't entitled to a deduction.

If you or someone you know is looking to work with a CPA this tax season, let's chat!

10/01/2025

Before the One Big Beautiful Bill Act (OBBBA), your overtime income was fully taxable for federal income tax purposes.

Beginning this year (2025) and continuing through 2028, the OBBBA establishes a new temporary deduction that can offset up to $12,500 of qualified overtime income each year, or $25,000 if you’re a married joint-filer.

Qualified overtime income includes only the extra pay you earn for overtime hours—generally, the portion above your regular hourly rate under the Fair Labor Standards Act. For example, if your regular rate is $25 per hour and you receive $37.50 for overtime, the extra $12.50 per hour counts as qualified overtime income. This deduction begins to phase out if your modified adjusted gross income exceeds $150,000 for single filers or $300,000 for married filing joint.

Some restrictions:

1) You must file jointly to claim the $25,000 married joint-filer deduction.
2) You must include your valid Social Security number on your tax return.
3) Your employer must report your qualified overtime income on your W-2 or another IRS-specified statement.
4) Business owners cannot pay themselves “overtime” to claim the deduction, since overtime law excludes owners who actively manage their corporations.

Bottom line: If you work overtime, you'll benefit from this new temporary tax provision.

09/17/2025

As you’re probably already aware, Michigan’s Earned Sick Time Act (ESTA), signed in February 2025 and effective October 1, 2025 for small employers, requires most employers to provide paid sick time to employees. Here’s a snippet of what’s required:

• 𝐂𝐨𝐯𝐞𝐫𝐚𝐠𝐞: Applies to most employees (full-time, part-time, temporary, seasonal).
• 𝐒𝐦𝐚𝐥𝐥 𝐄𝐦𝐩𝐥𝐨𝐲𝐞𝐫𝐬: Those with 10 or fewer employees must allow up to 40 hours of paid sick time per year; larger employers must allow up to 72 hours.
• 𝐀𝐜𝐜𝐫𝐮𝐚𝐥 𝐨𝐟 𝐄𝐚𝐫𝐧𝐞𝐝 𝐒𝐢𝐜𝐤 𝐓𝐢𝐦𝐞: Employees earn 1 hour of sick time for every 30 hours worked, with an option for employers to “frontload” the full amount at the start of the year.
• 𝐂𝐚𝐫𝐫𝐲𝐨𝐯𝐞𝐫: Unused hours can carry over into the next year (up to the annual cap) unless time is frontloaded.
• 𝐏𝐚𝐲 𝐑𝐚𝐭𝐞: Sick time must be paid at least the employee’s normal hourly rate or the state minimum wage, whichever is higher.
• 𝐖𝐚𝐢𝐭𝐢𝐧𝐠 𝐏𝐞𝐫𝐢𝐨𝐝: Newly hired employees can be required to wait 120 days after beginning employment before using accrued paid earned sick time.

For full details and compliance guidance, see the Michigan Department of Labor and Economic Opportunity website, reference the attached articles, or consult your HR/legal advisor. This message is provided for general informational purposes only and is not intended as, nor should it be relied upon as, legal or tax advice. While every effort has been made to ensure the accuracy of the information, laws and regulations may change. Recipients should consult their own legal HR/legal advisor how these rules apply to their specific situation. As a CPA, I am not providing legal advice and accept no liability for actions taken or not taken based on the contents of this message.

https://www.michigan.gov/leo/bureaus-agencies/ber/wage-and-hour/paid-medical-leave-act/frequently-asked-questions--faqs

https://www.jacksonlewis.com/insights/last-minute-changes-michigans-earned-sick-time-law-what-employers-need-know

https://www.paychex.com/articles/compliance/michigan-earned-sick-time-act

09/15/2025

Thanks to the One Big Beautiful Bill Act (OBBBA), 100 percent bonus depreciation has been restored and made permanent. We’ve had 100 percent bonus depreciation before (during 2018-2022), but it was never permanent.

The bonus percentage was reduced to 80 percent for 2023 and 60 percent for 2024. The percentage was 40 percent for 2025 until the OBBBA was passed. The 40 percent deduction now applies only to property acquired from January 1, 2025, through January 19, 2025.

You can use bonus depreciation to deduct any property you acquire by purchase from an unrelated party that has a depreciation period of 20 years or less—this includes all types of tangible personal business property and off-the-shelf software (but not custom software).

It also includes land improvements that have a 15-year depreciation period, such as landscaping, fences, and driveways.

You can also use bonus depreciation for “qualified improvement property”: non-structural interior improvements made to non-residential (e.g., commercial) buildings after they are placed in service.

As we ramp up towards tax season, I'll be sharing many of the new tax changes. Stay tuned for more insight