Why Repair and Improvement Classifications Still Matter Ordinary repair and maintenance expenses are generally deductible in the year they’re paid or incurred, depending on a business’s accounting method. By contrast, costs that improve property must generally be capitalized. However, capitalization doesn’t always mean waiting years to recover the cost. The One Big Beautiful Bill Act […]
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Payroll administration can be challenging for small business owners. Even minor mistakes can result in incorrect paychecks, frustrated employees and time-consuming corrections. Errors involving tax withholding, deposits or reporting may also expose your business to interest and penalties. Payroll software and third-party providers can simplify the process, but they don’t eliminate your responsibility as an […]
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Starting a business as a sole proprietorship can be simple and cost-effective. However, operating as a sole proprietor comes with important federal tax responsibilities that business owners need to understand. Unlike employees who have taxes withheld from their paychecks, sole proprietors generally must manage their own income taxes, self-employment taxes, deductions and estimated payments. Here […]
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Most employee Form W-4 submissions are straightforward, but occasionally an employer may receive a form that appears altered, incomplete or otherwise invalid. In other cases, the IRS may issue a lock-in letter requiring a specific amount of federal income tax withholding. Understanding how to handle these situations can help your business remain compliant with IRS […]
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Choosing the Right Tax Accounting Method for Your Small Business Selecting the right tax accounting method is one of the most important financial decisions a small business can make. Your choice affects when you report income, deduct expenses, and ultimately pay taxes. While many larger businesses are required to use the accrual method, qualifying small […]
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Is Your Side Gig a Business or a Hobby? What the IRS Wants to Know Whether you’re selling handmade products online, freelancing after work, or earning extra income through a passion project, your side hustle comes with tax responsibilities. While all income must be reported on your federal tax return, the ability to deduct expenses […]
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Many self-employed professionals focus on growing their businesses and maximizing current tax deductions, often overlooking one of the most powerful retirement planning tools available: the Roth IRA. While some business owners assume their income is too high to qualify, others prioritize immediate tax savings over future tax-free income. However, a Roth IRA can play a […]
Many business owners consider themselves “small businesses,” but the Internal Revenue Service (IRS) doesn’t apply a single universal definition. Instead, eligibility for various tax benefits depends on factors such as annual gross receipts, assets, employee count, and ownership structure. Understanding whether your company qualifies as a small business can have a significant impact on your […]
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Material Participation Rules for LLP and LLC Owners: Why It Matters For owners of limited liability partnerships (LLPs) and limited liability companies (LLCs), understanding material participation rules can have a major impact on tax planning and business loss deductions. The IRS passive activity loss (PAL) rules may limit your ability to deduct business losses unless […]
Tax Identity Theft: Businesses Are at Risk, Too Tax identity theft is no longer just an issue for individual taxpayers. Businesses of all sizes are increasingly targeted through Employer Identification Numbers (EINs), payroll systems, and fraudulent tax filings. These attacks can lead to delayed refunds, unauthorized payroll filings, IRS notices, financial losses, and reputational damage. […]
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Many business owners assume Affordable Care Act (ACA) penalties no longer apply, but that’s not the case. While the individual mandate penalty was eliminated, employer requirements remain fully in effect. As your business grows, failing to understand ACA compliance could lead to significant and unexpected penalties. What Is the ACA “Play-or-Pay” Rule? The ACA’s employer […]
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FAQs About the Research Credit Companies that invest in research and development may qualify for a valuable federal tax credit. The rules are complex and not all research activities are eligible, but the tax savings can be significant. Here are answers to the most common questions about this potentially lucrative tax break. What Is the […]
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ARE YOUR DISASTER PLANS AS STRONG AS LAST YEAR’S LUCK? PREPARING FOR THE 2026 HURRICANE SEASON As Hurricane Season 2026 approaches, the THF (Thomas Howell Ferguson P.A. CPAs) Government Consulting Services Team remain focused on one priority: strengthening readiness and sustaining resilience. One quieter season does not reduce risk, it reinforces the importance of discipline […]
An advance payment is money received before a business delivers goods or performs services. For federal income tax purposes, advance payments are generally taxable in the year received. If your business uses the cash method of accounting, advance payments must be included in income when received. However, if your business uses the accrual method, you […]
Tallahassee, FL —THF (formerly Thomas Howell Ferguson P.A. CPAs) is pleased to announce that Chuck Weeks, CPA, CGMA, SSBB, SSLP, has joined the firm as its new Chief Financial Officer. Weeks brings more than two decades of experience in accounting, financial management, and strategic leadership across a broad range of industries, including construction, manufacturing, SaaS, logistics, […]
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Did your business make repairs to tangible property such as buildings, equipment, or vehicles in 2025? If so, those costs may be fully deductible on your 2025 income tax return, provided they qualify as repairs rather than improvements that must be capitalized and depreciated over time. Understanding the difference between repairs and improvements and leveraging […]
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If you own a business or are self-employed and haven’t yet established a tax-advantaged retirement plan, there’s still time to act for 2025. By setting up a Simplified Employee Pension (SEP) before filing your 2025 tax return, you can make deductible contributions that reduce your current-year tax liability. SEPs are especially attractive because they: If […]
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What Employers Need to Know About 2026 Tax Reporting Changes If your business pays employees or independent contractors, new IRS reporting rules are coming in 2026 that could impact your payroll systems, W-2 filing processes, and 1099 reporting thresholds. Thanks to the One Big Beautiful Bill Act (OBBBA) passed in 2025, employers will need to […]
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Tax Filing & Deduction Updates for Pass-Through Entities in 2026 Do you operate your business as a partnership, an LLC treated as a partnership, or an S corporation? These are known as pass-through entities because they pass income, deductions, and credits directly to their owners. While they don’t pay federal income tax at the entity […]
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What Business Expenses Are Tax Deductible in 2025? As tax season approaches, business owners are asking:“What expenses can I actually deduct on my 2025 tax return?” The answer isn’t always as simple as it seems. While many costs feel “business-related,” the IRS applies a more specific standard: expenses must be both ordinary and necessary. At […]
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Developing Leaders from Within: The Role of Senior Consultants at THF At Thomas Howell Ferguson (THF), Senior Consultants represent one of the core leadership tiers within our Government Consulting Services (GCS) department. Each Senior Consultant leads a team of five to six professionals, providing strategic direction, mentorship, and day-to-day guidance that supports both individual development […]
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2026 Business Tax Limits and Updates: What You Need to Know A new year brings new numbers and for business owners, those numbers can directly affect your tax strategy, deductions, and compliance. Whether you’re planning capital investments or managing employee benefits, staying up to date on the 2026 tax limits for businesses is critical. The […]
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Poor Records, Lost Deductions: What the Tax Court Wants Business Owners to Know Running a business is about more than selling products or delivering services, it’s about protecting what you earn. One of the most common ways businesses lose money is by failing to maintain proper financial records. A recent U.S. Tax Court case highlights […]
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If you haven’t finalized your year-end tax planning for your business, there’s still time to reduce your 2025 tax liability. While proactive, year-round planning is ideal, there are several smart strategies you can use in the final weeks of the year to capture business tax deductions. At THF, we help businesses of all sizes close […]
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When your closely held corporation needs financing, personally guaranteeing the loan can feel like an easy solution. But before signing on the dotted line, it’s important to understand the potential tax consequences. Acting as a guarantor means that if the corporation cannot repay the debt, you become legally responsible, and depending on the circumstances, that […]
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Tallahassee, FL — THF proudly announces the retirement of Winston Howell, CPA, CGMA, one of the Firm’s founding partners and shareholders emeritus, who retired earlier this fall. “We make a living by what we get, but we make a life by what we give,” said Winston, quoting Winston Churchill, a philosophy he has embodied throughout […]
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[Tallahassee, Fla.] – THF (Thomas Howell Ferguson P.A. CPAs), a leading Florida-based professional accounting and advisory services firm, is pleased to announce the acquisition of Hamic Previte & Sturwold, PA (HPS), a respected CPA firm with offices in Lakeland and Dade City. With over 150 team members, THF provides clients with a full range of […]
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TALLAHASSEE, FL (October 9, 2025) – THF (formally known as Thomas Howell Ferguson P.A. CPAs), a nationally recognized CPA and professional services firm, proudly announces the promotion of Skylar Bunch as Billing Specialist within its Internal Client Services (Administration). In her new role, Skylar will continue to play a critical part in ensuring that our […]
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TALLAHASSEE, FL (October 7, 2025) – THF (formally known as Thomas Howell Ferguson P.A. CPAs), a nationally recognized CPA and professional services firm, proudly announces the promotion of several professionals in its Government Consulting Services (GCS) department, reinforcing its commitment to innovative solutions and impactful results for government consulting services. The promoted team members include: […]
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Self-Employed? Here’s How to Reduce Your 2025 Self-Employment Tax If you’re self-employed and earning a strong income, you’ve likely asked: “Is there a way to reduce self-employment tax?” The good news? Yes—under the right conditions, converting to an S corporation (S corp) could lower your tax burden significantly. At THF (Thomas Howell Ferguson CPAs), we […]
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Quiet Victories, Lasting Impact: The Heart of Government Consulting Services. Not all victories are loud. Some happen quietly, in boardrooms, at community events, and through the steady dedication of people who want to make an impact. At THF Government Consulting Services (GCS), we’re often recognized for our hurricane recovery efforts. These moments are urgent, visible, […]
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Business Owner Divorce? Avoid Tax Surprises with the Right Strategy A divorce is difficult enough—but for business owners, the stakes are even higher. Your company may be your largest asset, and dividing it incorrectly can lead to serious tax consequences. If you’re facing a business owner divorce, now is the time to protect your finances […]
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Beyond the Balance Sheet: Navigating Government Challenges with Confidence When most people think of a CPA firm, they picture accountants preparing financial statements, conducting audits, or filing tax returns. At Thomas Howell Ferguson (THF), those services are essential, but our Government Consulting Services (GCS) Department operates in a completely different manner. We don’t just look […]
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Whether you’re planning to relocate, expand, or repurpose a historic building for business use, the rehabilitation tax credit offers a powerful financial incentive. With up to 20% back on qualified expenditures, this federal business tax credit can help offset the cost of improvements that meet specific historic preservation criteria.At THF (Thomas Howell Ferguson CPAs), our […]
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According to the U.S. Census Bureau, nearly 447,000 new business applications were filed in May 2025 alone. If you’re one of the many entrepreneurs starting a new business, understanding how your startup costs are treated for tax purposes can make a big difference in your bottom line. At THF (Thomas Howell Ferguson CPAs), we guide […]
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Understanding 2 CFR 200 Uniform Guidance: What Disaster Procurement Really Requires When disaster strikes, whether it’s a hurricane, flood, or wildfire, public agencies often rely on federal funding to support response and recovery efforts. These funds come with strict rules, especially regarding procurement. For many local governments and agencies, navigating the layers of federal, state, […]
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In July, Congress passed a massive reconciliation bill unofficially dubbed the “One Big Beautiful Bill Act.” While the official name was removed to comply with Senate rules, this legislation is poised to reshape the U.S. tax code, permanently extending key provisions of the Tax Cuts and Jobs Act (TCJA), introducing new tax breaks, and rolling […]
Deployment Uncovered: What Disaster Response Really Looks Like, and Why Every Hand Matters We often hear the word deployed when our state braces for a hurricane making landfall. But have you ever wondered what deployment truly means and what it involves? Most people picture the National Guard and first responders rushing to help affected areas […]
If your business claims deductions for expenses like meals, vehicle use, or a home office, be prepared for close scrutiny from the IRS. These types of deductions are among the most commonly audited, and even honest taxpayers can find themselves in hot water if documentation is lacking. A recent U.S. Tax Court case (T.C. Memo. […]
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A sweeping piece of legislation—The One, Big, Beautiful Bill—is making its way through Congress and could reshape how businesses manage their taxes. From bonus depreciation to the qualified business income (QBI) deduction, these proposals aim to boost cash flow, reduce compliance burdens, and stimulate investment. While not yet law, understanding what’s on the table is […]
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