Tax Planning & Compliance
OBBB Creates More Deduction Room for Middle-Income Filers
For years, the state and local tax deduction has been an important consideration for taxpayers in high-tax states. In 2017, The Tax Cuts and Jobs Act set a $10,000 cap, which limited the ability of many individuals and pass-through entity shareholders to reduce federal taxable income. The One Big Beautiful Bill (OBBB) Act, signed into […]
OBBB State & Local Tax Deduction Increase May Enhance Itemized Benefits
The One Big Beautiful Bill Act, signed into law July 4, 2025, raises the state and local tax (SALT) deduction cap from $10,000 to $40,000 for households with modified adjusted gross income (MAGI) under $500,000. For many, this brings a renewed incentive to itemize, putting mortgage interest, charitable contributions, and property taxes back into play. […]
Why More Business Owners Are Turning to ESOPs for Succession
More business owners are turning to employee stock ownership plans (ESOPs) to ensure continuity, reward long-serving team members, and transition out with intention. Unlike sales to outside buyers, ESOPs keep ownership within the company, preserving institutional knowledge and culture. Beyond continuity, ESOPs provide a pathway to liquidity that aligns with both financial goals and legacy. […]
Interest Deduction Limits Loosened, Restoring Favorable Treatment for U.S. Businesses
Businesses financing growth may see renewed opportunities to recover interest costs more quickly under the One Big Beautiful Bill Act (OBBBA) due to a change that restores depreciation and amortization addbacks in calculating the limit on deductible interest. This adjustment to Internal Revenue Code Section 163(j) marks a return to the more generous standard in […]
Megabill Provisions Raise Tax Exposure for Multinationals
The One Big Beautiful Bill Act (OBBBA), enacted in July 2025, introduces broad changes to international tax rules. These adjustments will affect U.S. corporations with foreign subsidiaries, especially those that benefit from favorable tax treatment on foreign income. While some provisions align with expectations tied to the scheduled end of the Tax Cuts and Jobs […]
New Theater Tax Credit Offers Support for Massachusetts Arts Organizations
Designed to encourage local economic activity and nurture the state’s vibrant arts and culture ecosystem, the Commonwealth of Massachusetts has launched a new program that supports performing arts organizations while also bolstering Massachusetts’ reputation as a premier destination for theatrical production. Starting in July 2025, the Massachusetts Live Theater Tax Credit Pilot Program will run […]
Buy-Sell Agreements, Life Insurance & Business Valuation: What Owners Must Know
Business owners are often reluctant to plan for the eventual transition of ownership, even though the need for succession is inevitable, whether it comes through retirement or unforeseen circumstances. Too often, the process is delayed because it feels premature, uncomfortable, or overwhelming. Some believe that having life insurance or a signed agreement in place is […]
Congress Passes Sweeping Tax and Spending Law with Broad Implications for Individuals and Businesses
Congress has passed a sweeping new law that permanently extends and expands key tax provisions, reshapes health and social program eligibility, and revises spending across defense, energy, and federal benefits programs. While many provisions take effect immediately, others will phase in or expire over time. AAFCPAs is analyzing the full scope of the law to […]
Court Upholds Massachusetts Tax on Business Gain After Owner Relocates
In this article: The Massachusetts Appeals Court recently ruled that a tech founder’s $4.7 million stock sale could be subject to state income tax, despite his move out of state. Craig Welch, who co-founded AcadiaSoft, Inc. in 2003, initially held a 50-50 ownership split with one partner, though his interest was diluted over time as […]