Pathfinding Consultants

By the Pathfinding Consultants Tax Team | pathfindingconsultants.com IRS CIRCULAR 230 DISCLAIMER This blog is provided for general informational purposes only and does not constitute tax, legal, or financial advice. Tax laws are complex and subject to change. The information presented here reflects federal tax rules as of the date of publication and may not apply to your specific situation. You should not act on this information without consulting a qualified tax professional

IRS CIRCULAR 230 DISCLAIMER This blog is provided for general informational purposes only and does not constitute tax, legal, or financial advice. Tax laws are complex and subject to change. The information presented here reflects federal tax rules as of the date of publication and may not apply to your specific situation. You should not act on this information without consulting a qualified tax professional. Pathfinding Consultants does not guarantee the accuracy or complete

Pathfinding Consultants | Tax Preparation & Business Solutions | Orange County, CA | May 2026 Source: IRS Notice 2026-11, January 14, 2026 — Treasury/IRS Guidance on the Additional First Year Depreciation Deduction under the One Big Beautiful Bill Act Official IRS source: irs.gov/newsroom/treasury-irs-issue-guidance-on-the-additional-first-year-depreciation-deduction-amended-as-part-of-the-one-big-beautiful-bill IRS DISCLAIMER: This blog is for general informational purposes

Pathfinding Consultants | Tax Preparation & Business Solutions | Orange County, CA | May 2026 Source: IRS Topic No. 556, Alternative Minimum Tax — irs.gov/taxtopics/tc556 | IRS Rev. Proc. 2025-32 | One Big Beautiful Bill Act (OBBBA), July 2025 IRS DISCLAIMER: This blog is for general informational purposes only and does not constitute tax advice. Tax laws are complex and subject to change. Every taxpayer situation is different. Please consult a qualified tax professional befo

Pathfinding Consultants | Tax Preparation & Business Solutions | Orange County, CA | May 2026 Filing a business tax return is one of the most important annual responsibilities every business owner faces — and one of the most commonly mishandled. The wrong filing status, a missed deduction, or a late payment can cost a small business thousands of dollars in unnecessary tax, penalties, and interest. Pathfinding Consultants provides tax preparation services for small and mid-siz

If you own an S-corporation, the IRS requires you to pay yourself a reasonable salary for the work you perform — before you take any distributions from the business. This is not optional, and it is one of the most actively audited areas of S-Corp tax compliance. Getting it wrong does not just create a tax problem. It creates a payroll tax problem, an interest and penalty problem, and in some cases a reclassification problem where the IRS recharacterizes your distributions as

Each year, the IRS adjusts the income limits that determine whether you can contribute to a Traditional IRA (and deduct it), or contribute to a Roth IRA at all. For 2026, the IRS has updated these limits, and understanding where you fall relative to the phase-out ranges is an important first step in retirement planning. The information below is drawn directly from the IRS announcement IR-2025-111, published November 13, 2025. All figures are official IRS numbers for tax year

When you sell an investment, a property, or another capital asset for more than you paid for it, the profit is called a capital gain. The IRS taxes capital gains differently depending on how long you held the asset before selling. Understanding whether your gain is short-term or long-term and which rate applies can make a significant difference in what you owe. These figures apply to assets sold during calendar year 2026. Returns are filed in early 2027. Source: IRS Topic No.

The IRS released its annual inflation adjustments for tax year 2026 in October 2025. These changes reflect amendments from the One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, which made most Tax Cuts and Jobs Act provisions permanent and introduced several new benefits for taxpayers. The same seven tax rates apply as in 2025 — 10%, 12%, 22%, 24%, 32%, 35%, and 37% but income thresholds have been adjusted upward by an average of 2.7% to prevent bracket cre

Are You Leaving $10,000+ on the Table Every Year? If you're a construction company owner, medical practice physician, or law firm partner earning six figures, the answer is likely yes—and you might not even realize it. Many business owners overlook a crucial detail: the entity structure you choose is not just about legal protection or paperwork; it's about cold, hard cash. The difference between operating as an LLC versus an S-Corp can mean $8,000 to $25,000+ in annual tax sa

Imagine this: you’ve worked tirelessly to build your business, and you’re finally ready to sell. After years of dedication, you expect a healthy return. But then, during due diligence, the buyer’s accountant begins scrutinizing your tax liabilities, and suddenly, your business valuation drops. This situation is more common than many business owners realize. Tax liabilities are not just numbers on a ledger; they can significantly impact the perceived value of your company. Un

When a startup approaches a liquidity event or sale, the excitement can quickly turn into confusion once taxes enter the picture. Many founders celebrate the deal size without realizing that poor tax planning can quietly erode 20-40% of their gains. In my 10+ years advising startup founders, I’ve seen how a few early tax moves, like exercising ISOs before valuation spikes or qualifying for the QSBS exclusion, can save millions in taxes. Proper planning doesn’t just protect yo

Restructuring your business entity before a fundraising round or sale can significantly reduce taxes and boost net returns. The right structure, LLC, C-Corporation, or partnership, affects how profits are taxed and how attractive your company is to investors or buyers. Many founders overlook this step and lose value to unnecessary taxes. Planning early with tax advisors helps choose the optimal entity, qualify for QSBS benefits, and time the transition effectively. In short,

When preparing to sell a business, most owners focus on valuation, negotiations, and deal terms . Yet one factor often overlooked, tax planning before an acquisition , can have the greatest impact on the final payout. With the right strategy, sellers can save millions by structuring the business and transaction to reduce taxes and increase after-tax proceeds. Tax planning isn’t only about minimizing liabilities; it’s about maximizing what owners keep after the sale . This gu

Imagine selling your startup shares after years of hard work and paying little to no capital gains tax. This isn’t just a dream; it’s possible through the Qualified Small Business Stock (QSBS) tax provision. Under Section 1202 of the Internal Revenue Code , QSBS allows eligible founders and investors to exclude up to 100% of capital gains from federal taxes when selling qualified stock. This powerful incentive rewards long-term investment in early-stage companies and helps

Picture this: you just received your first batch of startup shares as a founder. It’s exciting but also nerve-wracking. How do you handle the tax implications? Enter the 83(b) election : a simple but powerful IRS filing that can save founders thousands in future taxes if used correctly. Startups often grant equity that vests over time, which can create massive tax bills on shares you don’t even fully own yet. For founders in California and Nevada , understanding how the 83(b)

Business acquisitions can be lucrative, but beneath the surface of every deal lies a complex web of potential tax pitfalls. These hidden tax liabilities often catch buyers off guard, turning what seemed like a promising investment into a costly headache. Understanding these risks and knowing how to navigate them is crucial for anyone involved in mergers and acquisitions (M&A) . Tax liabilities don’t always appear in the obvious places. They can be buried in past financial s

In the fast-evolving world of technology, mergers and acquisitions (M&A) have become a strategic tool for growth, innovation, and market expansion. For SaaS founders and investors, understanding the intricacies of tax due diligence is critical to ensuring that deals are structured optimally and risks are minimized. Tax issues can significantly impact the valuation, timing, and ultimate success of tech acquisitions. This guide explores the essentials of tax due diligence in t

Tax season may be over, but your financial planning shouldn’t stop there. The period after filing is the perfect time to review your return, organize records, and plan smarter for next year. Post-tax season planning helps you reduce stress, improve cash flow, and strengthen your financial health. Whether you’re an individual or a business owner, taking a few key steps now, like analyzing your tax results, adjusting budgets, and preparing for future payments, can make next ye

Missing a tax deadline can feel overwhelming and stressful, but it’s a situation many taxpayers face at some point. Whether it’s due to unexpected life events, confusion about filing requirements, or simple oversight, the important thing is how you respond once you realize the deadline has passed. Acting quickly and strategically can help minimize penalties, reduce stress, and set you on a path to financial recovery. This guide will walk you through what happens when you mis