Maillie LLP

Current tax law generally limits deductions of business interest, with certain exceptions. If your business has significant interest expense, it’s important to understand the impact of the Section 163(j) deduction limit on your tax bill. Unless your company is exempt, your maximum business interest deduction for the tax year equals the sum of 1) 30% of your company’s adjusted taxable income (ATI), 2) your company’s business interest income, if any, and 3) your company’s floor plan financing interest, if any. If your company is affected by the business interest deduction limitation, contact us to see if you can avoid it or reduce the impact. We can help assess what’s right for your business.https://bit.ly/4kH3qFh

Has your not-for-profit recently lost federal grants or other funds? Before you consider conducting layoffs, look for other expenses to slash. If employees can work from home, you may be able to break or renegotiate your office lease. And if you currently occupy more than one location, try to combine them for greater cost efficiencies. What’s more, you may be able to save money by renegotiating prices with vendors (so long as you watch out for termination fees). Also, be assertive. Some vendors may be amenable to offering nonprofit discounts or even donations. Contact us for help cutting costs and finding new revenue sources.https://bit.ly/4htm80m

Did you make significant gifts to your children, grandchildren or other heirs last year? If so, it’s important to determine whether you must file a gift tax return by April 15 (Oct. 15 if you file for an extension). The annual gift tax exclusion was $18,000 in 2024 (increasing to $19,000 in 2025). Generally, you’ll need to file a return if you made gifts in 2024 that exceeded the $18,000-per-recipient gift tax annual exclusion (though there are exceptions in certain situations). But it may be desirable to file a gift tax return even if you aren’t required to. Contact us if you’re unsure whether you must (or should) file a 2024 gift tax return.https://bit.ly/43C8vIY

What motivates salespeople? First and foremost, equitable and enticing compensation. And therein lies a challenge: Choosing the right sales compensation model isn’t easy and may call for reevaluation. The most common options include: 1) Straight salary (or hourly wages); this is the simplest option but doesn’t address motivation. 2) Commission only; it’s all about motivation but doesn’t offer employees financial stability. 3) Salary plus commission; this model offers stability but may be complex to administer. 4) Hybrid; here, you offer a salary plus performance-based incentives, an increasingly popular approach. Contact us for help assessing your company’s sales compensation model.https://bit.ly/4ilHfmv

Timely, accurate financial records are essential to running a successful business. There are many affordable off-the-shelf bookkeeping software solutions available today. QuickBooks is one of the most popular options for small and midsize businesses, offering a comprehensive suite of tools designed to simplify financial management and support business growth. It can be customized to fit your current needs and integrates seamlessly with other business platforms. Plus, it can give your accountant secure access to your company’s real-time financial data. Contact us for help choosing the right software package for your situation and maximizing its potential benefits.https://bit.ly/43CIEk3

Maillie was proud to sponsor the Perkiomen Valley Chamber of Commerce's Healthy Women’s Wellness Expo & Conference last week! ??? Our own Amanda Bernard, CPA, CFE, CMA spoke on #FinancialWellness as a panelist, while Madi Burns (Manager), Angela Scandone (Supervisor), and Allie Maggio (Staff) joined for a day of networking, learning, and connection. Supporting women in business is always a priority, but being part of this event during #WomensHistoryMonth made it even more special. ?? #MovingForwardTogether

On behalf of our leadership team, thank you to each member of Team Maillie for bringing the #TopWorkplace energy that sets us apart—day in and day out. Maillie works because of ?? you. ?? #EmployeeAppreciationDay #TopWorkplace2024

You can itemize deductions if the total of your allowable itemized write-offs for the year exceeds your standard deduction allowance for the year. Otherwise, you must claim the standard deduction. The basic standard deduction allowances for 2024 are: $14,600 for single taxpayers, $29,200 for married joint filers and $21,900 for heads of households. Additional standard deduction allowances apply if you’re age 65 or older or blind. For 2025, the basic standard deduction allowances are $15,000, $30,000, and $22,500, respectively. Itemized deductions include charitable contributions, mortgage interest, state and local taxes, and medical expenses. Other rules and limits apply.https://bit.ly/41kdZoS

The best defense against business risks is a strong offense. A well-structured enterprise risk management (ERM) framework can help your organization anticipate risks, seize opportunities and build resilience. The Committee of Sponsoring Organizations of the Treadway Commission offers a comprehensive ERM framework, which is continuously updated for emerging risks and trends. Recent updates address such issues as sustainability and governance, cyberattacks, legal and regulatory compliance, fraud, and alternative data sources. Contact us to discuss cost-effective ERM strategies tailored to your business needs.https://bit.ly/4gXujlp

If an individual taxpayer has substantial business losses, unfavorable federal income tax rules may come into play. If your business or rental activity throws off a tax loss (and many do during the early years), things can get complicated. For example, you can’t deduct an excess business loss in the current year. For 2024, an excess business loss is the excess of your aggregate business losses over $305,000 ($610,000 for married joint filers). For 2025, the thresholds are $313,000 and $626,000, respectively. An excess business loss is carried over to the following tax year and can be deducted under the rules for net operating loss (NOL) carryforwards. Contact us with any questions.https://bit.ly/3ELYXAV