Tax Planning Archives | Hutchinson and Bloodgood LLP

Tax Planning

What triggers SE tax, and how can you manage it?

Understanding self-employment tax is essential whether you’re a sole proprietor, partner, LLC member or employee with a side hustle. Learn how the rules work and explore ways to potentially lower the burden.

November 2, 2026

Self-employment (SE) tax can be a major expense for small business owners — and many self-employed individuals are surprised by this obligation when they file their first tax return that includes self-employment income. It’s separate from federal and state income tax, so a small business owner may owe both income tax and SE tax on […]

#SelfEmploymentTax, #SmallBusinessTaxes, #TaxPlanning

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Tax Planning

How mortgage points may affect your taxes

Points are upfront fees charged by a home mortgage lender, expressed as a percentage of the loan principal. But are they deductible? Find out.

October 28, 2026

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If you’re in the process of buying a home, or you bought one earlier this year, you probably know that you may be able to claim the property tax deduction and the mortgage interest deduction when you file your next income tax return. But you might not be so sure about mortgage points paid. The […]

#Homeownership, #MortgageInterest, #RealEstate

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Tax Planning

SALT Digest Issue #12: Composite Returns for Pass-Through Entities: Which States Require Them and What They Mean for Owners

Composite returns are mandatory in only five states, prohibited in several, and often limited to nonresident individuals, so decide owner by owner alongside any PTET election, using current-year instructions. Our team can assist with composite and withholding analysis, nonresident agreements, PTET modeling, and multistate pass-through compliance

October 26, 2026

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#PartnershipTax, #SALT, #TaxPlanning

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Tax Planning

Separating or divorcing this year? Consider these tax issues before year end

Separation and divorce can have tax consequences that are often overlooked. If you’re in the process of a split with your spouse, it’s important to understand how a legal separation or final divorce decree could affect your 2026 filing status and tax liability.

October 13, 2026

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Dissolving a marriage involves numerous financial and nonfinancial decisions, and tax considerations can easily fall by the wayside. But decisions made before your divorce is finalized can affect your current-year income tax liability and your tax situation in future years. Let’s look at some of the most critical tax issues to consider as you work […]

#DivorcePlanning, #DivorceTaxes, #TaxPlanning

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Tax Planning

Expecting a big revenue year? Consider tax moves before year end

If your business is booming, congratulations! Higher profits are great news, but don’t overlook your 2026 income tax obligations. Let’s explore ways to lower taxes and avoid tax-filing surprises.

October 12, 2026

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For most small business owners, strong revenue growth is something to celebrate. But a profitable year can also significantly increase your income tax liability. If your business is on track for a banner year, now is the time to evaluate tax-reduction strategies. Here’s some guidance for sole proprietors and owners of pass-through entities (such as […]

#businesstaxes, #SmallBusinessTax, #TaxPlanning

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Tax Planning

A small business primer on expense deductions

Which of your small business’s expenses are tax-deductible? This primer can help you understand the potential ramifications of spending decisions and which records you need to retain.

September 28, 2026

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Whether your small business is new or you’ve run it for decades, you may not fully understand which expenses are potentially tax-deductible and which aren’t. After all, that’s why you have a tax advisor! But it’s worth keeping up with tax law because your daily decisions could significantly reduce your business’s taxable income — and […]

#businesstaxes, #TaxDeductions, #TaxPlanning

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Tax Planning

What higher 2026 AMT risk may mean for your year-end tax planning

September 25, 2026

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Tax law changes taking effect this year will increase alternative minimum tax (AMT) risk for some higher-income taxpayers. If you may be affected, consider the AMT before implementing income or deduction timing strategies. A move that would reduce your 2026 regular tax might provide little or no benefit under the AMT — or could trigger […]

#AlternativeMinimumTax, #FinancialPlanning, #TaxPlanning

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Tax Planning

What are the tax implications of cryptocurrency transactions?

Got crypto? Small business owners should beware of tax surprises when dealing with cryptocurrencies.

September 24, 2026

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If your small business accepts, uses or invests in Bitcoin, Ethereum or other forms of cryptocurrency, accurate reporting and detailed records are critical for federal tax purposes. The IRS continues to scrutinize digital-asset transactions. Today, business tax returns include a question about digital assets, and brokers are now required to report certain transactions to taxpayers […]

#CryptoAccounting, #Cryptocurrency, #TaxPlanning

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Tax Planning

SALT Digest Issue #11: Sales Tax on SaaS and Other Digital Products: California and Colorado Changes Coming in 2027

September 22, 2026

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#SoftwareTax, #TaxCompliance, #TaxPlanning

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Tax Planning

5 tax-smart ways to take cash out of your C corporation

Dividends aren’t the only way to take cash out of your C corporation. Here are some more tax-efficient alternatives to think about before year end.

September 15, 2026

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If you own a closely held C corporation, you might be looking for ways to withdraw cash from your business. Paying yourself a dividend can be a straightforward option — but it comes at a tax cost. Corporate distributions are generally taxable to you to the extent of your company’s “earnings and profits,” and your […]

#businesstaxes, #CCorporation, #TaxPlanning

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