What’s Ending—and When

• Residential Clean Energy & Home Appliance Credits
  Credits like the 30% Residential Clean Energy Credit (Section 25D)—covering solar panels, wind, geothermal, and battery systems—and the Energy Efficient Home Improvement Credit (formerly Section 25C)—including improvements and appliances—will expire on December 31, 2025.
• Federal EV Tax Credit
  The federal tax credit for both new and used electric vehicles will end on September 30, 2025.
• EV Charging Station Credit (Section 30C)
  This credit—for installing EV charging equipment—must now be placed in service by June 30, 2026, to qualify.
• Commercial Solar & Wind Credits (Sections 48E & 45Y)
  These clean energy credits for larger projects will terminate after December 31, 2027, unless construction begins by July 4, 2026—triggering new IRS guidance requiring substantial physical progress under Treasury’s executive order. 
• Commercial Vehicle Clean Energy Credit (Section 45W)

  This credit for clean commercial vehicles must be claimed by September 30, 2025
• Commercial Vehicle Clean Energy Credit (Section 45W)

Why These Deadlines Matter

The IRA (Inflation Reduction Act) originally offered extended tax incentives for renewable energy and efficiency through the 2030s. The OBBB act significantly accelerates those deadlines—ending residential incentives as early as 2025 and placing strict timelines on commercial projects, scaling back momentum for clean energy adoption.

How It Stacks Up for 2025

• Standard deduction: seniors already benefit from an additional $2,000 (single) or $1,600 per spouse (married) on top of the base standard deduction.
• Plus the new bonus: when combined, a single senior could deduct up to $6,000 plus the usual senior addition. In total, a single filer might see a deduction as high as $21,750, while married couples could see totals up to $43,500.

• Single filers get the full deduction if MAGI ≤ $75,000.
• Married couples filing jointly get the full $12,000 if MAGI ≤ $150,000.
• Phase-out occurs—for singles up to MAGI $175,000; for couples up to $250,000—with the deduction reducing by around 6% per dollar over the threshold.

Gambling can be exciting — but when it comes to taxes, the IRS has the upper hand. Whether you place the occasional sports bet or enjoy weekend trips to the casino, your winnings (and losses) can have serious tax implications. In addition, beginning January 1, 2026, a new law changes the way gambling losses are deducted, potentially leaving many gamblers with unexpected tax bills.

Thinking about bringing your child into the business? Many small business owners do — and it can be a win-win. Your child gets early exposure to real-world work, you get an extra set of hands, and there can even be tax advantages. But, if not done correctly, it can trigger red flags with the IRS and lead to denied deductions or penalties. Here's how to do it the right way.

✅ 10 Essential Tips for Hiring Your Children in Your Business

👨‍👩‍👧 Bonus Tip: Create an employment agreement for your child just like you would for any other employee. It strengthens your documentation and shows the IRS you're serious about doing it right.

At Alto CPA Group, LLC, we help small business owners implement tax-smart strategies — like hiring your children — in full compliance with IRS rules. Contact us if you’d like guidance setting this up correctly, including payroll support, tax filings, and documentation.

Running a small business comes with a lot of moving parts—but your finances don’t have to be one of them.

At Alto CPA Group, LLC, we help entrepreneurs and small business owners take control of their books, expenses, and payroll using smart, streamlined tools like Zoho Books, Zoho Expense, and Zoho Payroll.

📘 Zoho Books: Bookkeeping Made Simple

- Include financial analytics identifying areas of concern and opportunity

💳 Zoho Expense: Smarter Spending

💼 Zoho Payroll: Confident Compliance

📊 From Chaos to Clarity

Let’s Make Finance a Strength, Not a Stressor

The 2025 "One Big Beautiful Tax Bill" introduces a series of taxpayer-friendly reforms aimed at reducing the burden on working Americans and small businesses. The bill was signed into law on July 4, 2025. Here’s a quick summary of the most impactful tax law changes:

When it comes to running a business, choosing the right accounting method isn’t just about compliance—it can also have a significant impact on your tax liability and cash flow.

The two primary methods of accounting for tax purposes are the cash method and the accrual method. Each has its pros and cons, and the method you choose can affect not only when you pay taxes but also how you manage your finances year-round.

So, which method is best for your business? Let’s break it down.

Understanding the Two Methods

✅ The Cash Method

With cash accounting, income is recorded when payment is received, and expenses are deducted when they’re actually paid. It’s straightforward and offers more flexibility when it comes to tax planning.

✅ The Accrual Method

In contrast, the accrual method records income when it’s earned and expenses when it’s incurred, regardless of when money changes hands. While it provides a more accurate picture of your company’s financial health, it limits your ability to shift income or expenses for tax advantage.

Why the Choice Matters

Your accounting method determines how—and when—income and expenses are reported to the IRS. That directly influences your taxable income, tax payments, and even your ability to manage cash flow efficiently.

For example, under the cash method, a business could delay invoicing customers until January to defer income into the next tax year. Or it could accelerate deductible expenses by paying bills in December instead of January.

This timing flexibility isn’t possible under the accrual method, which is based on economic activity rather than actual cash flow.

Who Can Use the Cash Method?

Thanks to the Tax Cuts and Jobs Act (TCJA), more small businesses can now use the cash method. For tax year 2025, a “small business” is defined as one with average annual gross receipts of $31 million or less over the prior three years. If your business falls within that threshold, you can enjoy several benefits:

• Simplified inventory accounting
• Exemption from uniform capitalization (UNICAP) rules
• Exemption from the business interest deduction limitation

Additional proposals could expand these limits even further for certain industries, like manufacturing.

Also eligible (even if they exceed the gross receipts test):

• S corporations
• Partnerships without C corporation partners
• Farming businesses
• Certain personal service corporations

However, tax shelters are explicitly ineligible for the cash method, regardless of size.

When the Accrual Method Might Be Better

While the cash method offers tax and cash flow advantages for many, the accrual method may be more appropriate in certain scenarios. For example:

• If your accrued expenses consistently exceed accrued income, accrual accounting could reduce your tax liability.
• You can deduct year-end bonuses paid within 2.5 months of year-end.
• You may be able to defer taxes on advance payments, such as deposits or subscriptions.

Additionally, companies that prepare financial statements in accordance with U.S. Generally Accepted Accounting Principles (GAAP) are required to use the accrual method. That could mean maintaining two sets of books—one for taxes and one for financial reporting—if you still wish to use cash for IRS filings.

Is It Worth Changing Your Method?

Switching accounting methods can offer tax savings—but there are trade-offs. Here’s what to consider:

• Administrative complexity: Maintaining both cash and accrual records may increase accounting costs.
• IRS consent required: Changing your accounting method isn’t automatic. You must file Form 3115 and receive IRS approval.
• Long-term implications: Some changes may affect how income and expenses are recognized in future years.

Make the Smart Choice

There’s no one-size-fits-all answer. Your industry, growth stage, financial goals, and even your financing needs can all influence whether the cash or accrual method is best for your business.

Before you make any changes, it’s essential to weigh the benefits against the administrative burden—and understand how it affects both your taxes and your books.

📞Need help deciding? At Alto CPA Group, we’ll walk you through the pros and cons, review your current setup, and guide you toward the most tax-efficient strategy for your business.

📌Summary

• The cash method provides tax planning flexibility and is now available to more businesses than ever.
• The accrual method may offer advantages for certain industries or when following GAAP.
• Evaluate your business’s needs carefully—and consult a qualified tax advisor before switching.