#businesstaxes Archives | Hutchinson and Bloodgood LLP

Tax Planning

Unlock tax-free gains with QSB stock

C corporation shareholders usually owe tax on gains from selling stock. But with qualified small business (QSB) stock, owners hold the key to a potential gain exclusion. Is this strategy right for your business?

April 28, 2026

If you run your business as a C corporation, you may be eligible for a potentially significant tax break for qualified small business (QSB) stock. This opportunity has existed for years, but recent tax law changes have enhanced it. What’s a QSB corporation? QSB corporations are a special type of C corporation. At the entity level, QSB […]

#businesstaxes, #QSBS, #TaxPlanning

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Tax Planning

Material participation: Why it matters for LLP and LLC owners

LLC and LLP owners: Can you deduct your business losses this year? The answer may depend on whether your activity is considered passive under the IRS’s passive activity loss rules.

April 20, 2026

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The passive activity loss (PAL) rules may limit your ability to deduct losses from a business structured as a limited liability partnership (LLP) or limited liability company (LLC). Depending on how your ownership interest is treated under these rules, you may have more or less flexibility to claim losses in the current year. Here’s a […]

#businesstaxes, #PassiveActivityLoss, #TaxPlanning

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Tax Planning

Year-end tax planning for accrual-basis taxpayers

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November 4, 2025

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Projecting your business’s income for this year and next can allow you to time income and deductible expenses to your tax advantage. It’s generally better to defer tax — unless you expect to be in a higher tax bracket next year. Timing income and expenses can be easier for cash-basis taxpayers. But accrual-basis taxpayers have […]

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Tax Planning

Ways to manage the limit on the business interest expense deduction

March 3, 2025

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Prior to the enactment of the Tax Cuts and Jobs Act (TCJA), businesses were able to claim a tax deduction for most business-related interest expense. The TCJA created Section 163(j), which 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 […]

#businesstaxes, #Section163j, #TaxPlanning, #TCJA

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Tax Planning

Drive down your business taxes with local transportation cost deductions

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December 9, 2024

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Understanding how to deduct transportation costs could significantly reduce the tax burden on your small business. You and your employees likely incur various local transportation expenses each year, and they have tax implications. Let’s start by defining “local transportation.” It refers to travel when you aren’t away from your tax home long enough to require […]

#businesstaxes, #cost, deductions

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