Maillie LLP

Have you ever bought stock shares that later became worthless? (This may become relevant in light of recent market volatility.) At least you can claim a tax deduction. You can claim a capital loss equal to your basis in the stock (generally what you paid for it). The stock is treated as if it was sold on the last day of the tax year. This date affects whether the loss is short- or long-term. You may discover that a stock is worthless after you’ve filed your return for the year. In that case, you can amend your return for that year to claim a credit or refund. This can be done for 7 years from the due date of your original return, or 2 years from the date you paid the tax, whichever is later.https://bit.ly/4iuf1Wy

When it’s time to consider your business’s future, succession planning can protect your legacy and successfully set up the next generation of leaders or owners. Here are five options to consider: 1) Transfer the business directly to family members through a sale or gifts. 2) Transfer ownership through a trust. 3) Engage in an employee or management buyout. 4) Establish an employee stock ownership plan. 5) Sell stock or assets to an outside buyer. Each of these options has tax implications. The best approach for you depends on factors including your retirement timeline, financial goals and family or employee involvement. Contact us about how to move forward in your situation.https://bit.ly/43VGEUb

How prepared is your not-for-profit for an economic downturn? If you’re a board member, you should ask this question regularly and look for financial red flags. For example, late or sloppy budgets that aren’t in line with board-approved strategies deserve attention. Dipping into reserves or an endowment or relying on unplanned borrowing can signal trouble, too. Also, be wary of overreaching executives who insist on making spending decisions without board input. Finally, stakeholder misgivings always deserve attention. Contact us to review your financial statements and budget to assess your organization’s resilience.https://bit.ly/4l1uG1r

Are you starting a business with partners and considering the best entity to form? An S corporation might be the ideal choice. One significant advantage of an S corp over a partnership is that, as an S corp shareholder, you won’t be personally liable for corporate debts. If you anticipate early losses, an S corp is more favorable than a C corp from a tax perspective. C corp shareholders typically don’t benefit from such losses, but S corp shareholders can deduct their share of the losses on their personal tax returns, up to their basis in the stock and any loans made to the entity. Contact us for more information.https://bit.ly/43VkZvm

If your employer offers tax-favored transportation fringe benefits, you should probably take advantage of them. For 2025, employer-provided mass transit passes for train, subway and bus systems are tax-free to an employee, up to $325 a month. Your company can’t deduct the cost of this benefit. However, your company can offer a salary-reduction arrangement that allows you to set aside up to $325 per month from your salary to pay for transit passes. That way, you pay with before-tax dollars. For 2025, employer-provided parking allowances are also tax-free up to $325 per month. You can be given this fringe on top of the tax-free $325 a month for transit passes. Contact us with questions.https://bit.ly/4j0Gb7z

A business transformation is a strategically planned modification of how all or part of a company operates. Some businesses might change their mission; others may undergo a digital, operational or structural transformation. The overarching goal of any transformation is to improve the company’s financial performance by increasing efficiencies, improving customer service, seizing greater market share or entering a new market. Deciding whether to undertake a transformation calls for due diligence through analysis of financial data and market trends, customer feedback, and input from professional advisors. If you opt to proceed, you must follow a careful, phased approach. Contact us for help.https://bit.ly/4iDZROE

We're thrilled to welcome Rebecca Dierolf, CPA, to the Maillie team! ?? Outside of work, Rebecca enjoys spending time with her husband, three daughters, and eight grandchildren—especially boating, hiking, or cooking something delicious for family and friends. As Tax Manager, she brings a wealth of expertise in tax planning for high-net-worth individuals and families and is excited to collaborate with privately held clients at Maillie. Welcome to the team, Rebecca! ??

Business travel costs can quickly spiral out of control, cutting into profits. Consider the following six tips to control these costs: 1) Set clear travel policies, including cost limits and required documentation. 2) Encourage early booking and the use of corporate travel platforms and alternative lodging for long-term trips. 3) Optimize daily expenses for ground transportation, meals and entertainment. 4) Negotiate discounts with preferred vendors and issue corporate cards. 5) Monitor spending and enforce accountability for all employees. 6) Contact us to review your current practices and learn ways to become more strategic about when and how money is spent on business travel.https://bit.ly/4l089SM

Amanda Bernard, Principal at #Maillie, had an exciting opportunity to engage with top learning and development experts from BDO Alliance firms at AICPA’s 2025 LEAD Symposium in National Harbor, MD this week. From cutting-edge ideas on employee onboarding to fresh strategies for continuing education, Amanda is energized to bring back to Maillie impactful approaches to advancing our team’s growth. #AICPALEAD2025 #Maillie #BDOAlliance

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